Marine transit powers global trade, moving about 80% of goods worldwide (UNCTAD). However, risks during shipping can disrupt businesses and damage cargo. Protecting against these risks is vital to keep trade flowing. Marine Insurance covers losses from dangers like fire or theft, helping shippers manage risks and stabilise operations.

Common Risks in Marine Transit
Goods can be damaged for various reasons, such as bad weather, theft, and more. Here are some common risks to help you understand what’s at stake:
a. Fire and Explosion
These incidents will not only cause damage to the goods but also destroy the container carrying them. Here’s how one can avoid it:-
- Packing hazardous materials safely: All flammable goods need to be packed as per international safety standards.
- Conduct routine inspection: Machinery in the ship, especially the electrical systems, should be checked to prevent malfunctions.
- Invest in crew training: Fire emergencies can be handled if the crew knows the safety standards and how to act during dangerous situations.
b. Theft and Piracy
High-risk maritime zones are prone to robbery and piracy, but one can prevent it by following the measures listed below:-
- Get tamper-proof seals to secure containers: The best way to lock the containers is by using high-security seals.
- Avoid high-risk routes if possible: Plan shipping routes so that you don’t have to pass regions prone to theft or piracy.
- Employ skilled armed personnel: Security teams can tackle piracy attacks and ensure goods stay safe.
- Opt for surveillance systems: Monitor your cargo to detect suspicious activity.
c. Damage During Loading or Unloading
Damage due to loading and unloading can happen due to several reasons, such as:
- Incorrect cargo loading: When the cargo is not handled correctly, especially when operators are not trained or want to rush operations.
- Poor packaging steps: If the cargo is not packed properly, it might fall, damaging the vessel during movement.
- Bad Weather conditions: If there is rain or high winds, the cargo will get displaced due to movement.
d. Natural Disasters
Check weather conditions like those mentioned below before planning a transit:-
- Storms and cyclones: Rough seas can displace containers. Example: If the shipment is textiles.
- Flooding in ports: This damages port infrastructure, making it temporarily inaccessible.
- Tsunami: Disasters like these disrupt port access and destroy storage areas.
e. Vessel Collision or Sinking
In case goods are not packed properly, they can sink or collide at any point because of:-
- Bad weather: Conditions like fog or rain can reduce visibility, resulting in a collision.
- Wrong navigation: The shipping crew can miscommunicate in navigation, leading to terrible accidents.
- Malfunction in the engine: This can prevent the ship from reaching its destination.
- Congested routes: Areas like ports or marine zones are crowded, which can cause close encounters or accidents.
f. Container or Cargo Misplacement
This can happen due to the following reasons:-
- Incorrect documentation: The shipper will then send the cargo to the wrong destination.
- Port handling mistakes: Containers can get misloaded onto the wrong vessel or misplaced.
- Absence of tracking Systems: Without real-time tracking, it’s difficult to monitor where a container is.
g. Delay in Transit
Delays can affect time-sensitive shipments. Most insurances do not cover loss unless it’s for perishables. Such delays happen due to:-
- Port congestion: If there are many ships at the port, it slows down the loading and unloading process
- Unpredictable weather: Storms will stop the cargo from moving ahead.
- Faulty equipment: Mechanical issues will cause unexpected delays.
h. Customs Seizure or Regulatory Detention
Non-compliance leads to cargo detention, like textiles. Causes include:
- Improper documents: Incorrect documentation in bills or invoices will cause shipment delays.
- Trade laws violations: If cargo violates important trade laws, customs can seize it.
- Unpaid taxes: If the cargo has unpaid taxes or fees, they can be withheld.
i. Infestation or Spoilage (for perishables)
Perishable goods like seafood can get damaged without temperature control. This will cause a considerable loss. Common risks include:
- Refrigeration failure – A broken reefer unit can lead to complete spoilage.
- Pest contamination – Inadequate storage conditions may attract pests. For example, grains.
- Transit delays – The longer the transit time, the higher the chance of getting spoilage issues.
j. Strikes, Riots, and Civil Commotions (SRCC)
Strikes and political unrest can delay shipments. The impacts of such incidents are:-
- Port closures: Halts port activities, which in turn halts the movement of shipments.
- Cargo damage: Riots can destroy the shipment containers.
- Disrupts transit: This can cause rerouting and severe delays.
How Does Marine Insurance Help Mitigate These Risks?
The right insurance plan offers peace of mind and safeguards you against unexpected financial losses. Here’s how it can help:
Protection against cargo loss/damage: Certain situations, like weather or theft, are beyond human control. A Marine Insurance plan will help recover the financial burden one might face due to such incidents.
Third-party liability protection: If property damage occurs due to a third party, Marine Insurance will cover the costs, whether legal or compensation.
Smooth claim process with documentation: Bill of lading, survey reports, and proof of insurable interest are important documents. If these are present, the claim process becomes smoother when managing disruptions.
How to Choose the Right Marine Insurance?
Wondering how the right Marine Insurance can make all the difference? Check the points below:-
a. Assess the nature of goods and destination risks – Always check your cargo and understand its route and destination to avoid any risks.
b. Compare policies for inclusions and exclusions – Understand what’s excluded in the insurance and what may be included.
c. Consider limits, deductibles, and clauses – Consider details like excess amount or coverage limits so you’re not overspending.
d. Partner with an experienced broker or platform – No one does it better than the professionals. Work with reliable Marine Insurance experts who make processes smoother.
Conclusion
Risks in marine transportation cannot be predicted. There are countless risks like cargo misplacement, theft, harsh weather and more, which can cause severe financial loss. However, these losses can be lessened through Marine Insurance. A Marine Insurance policy will help protect the goods, thereby letting trade operations run smoothly.