Recent events in Chicago have put a spotlight on the vulnerabilities that can exist within global supply chains. On one front, a freight train in Chicago’s Austin neighborhood was overrun by thieves who stole cargo from parked trains in broad daylight. At the same time, an American Airlines Boeing 787 was damaged after its engine ingested a cargo container while taxiing at Chicago O’Hare. These incidents serve as sobering reminders that supply chain disruptions and cargo damage can happen at any point — and why businesses need adequate cargo insurance.
In the case of the Chicago freight train heist, it was revealed that thieves targeted only specific containers, raising concerns that they may have had information about the high-value electronics inside those particular boxes. While Union Pacific and local law enforcement agencies are working together to investigate the incident, it underscores the sophistication of cargo theft operations that can occur across the country. As Keith Lewis, vice president of operations at Cargonet, stated, “The sophisticated crews are playing chess, while we on the supply side chain are playing checkers.”
Meanwhile, the damage to the American Airlines Dreamliner highlights another aspect of risk that supply chain managers must contend with — unexpected accidents. In this instance, a container broke loose and was sucked into the plane’s engine during a routine taxi to the gate, taking the aircraft out of service for repairs.
These incidents are not isolated and serve as a warning to importers, exporters, and logistics professionals: cargo theft, damage, and unexpected disruptions are real and can have devastating impacts on your bottom line. Cargo theft in the U.S. alone is a multi-billion dollar issue that can disrupt the entire supply chain, affecting delivery times, client satisfaction, and overall profitability.
The Importance of Cargo Insurance
Cargo insurance is a critical tool for mitigating the risks associated with theft, damage, or loss during transport. In today’s global market, where goods pass through multiple touchpoints — from loading docks to railways, ports, and airports — the chances of cargo being lost or damaged increase. Without proper insurance, businesses are left vulnerable to covering significant financial losses on their own.
While theft or damage can happen at any stage in the supply chain, having comprehensive cargo insurance ensures that you are covered in unforeseen circumstances. This type of insurance provides protection against physical loss or damage to goods while in transit, whether by air, sea, or land and ensures you’re compensated for the value of the cargo if something goes wrong.
Moreover, cargo insurance is not just about financial reimbursement; it also gives peace of mind. Knowing that you are covered in the event of theft, damage, or accidents allows you to focus on other areas of your business, confident that your supply chain risks are minimized.
Why Work with Edward J. Zarach & Associates?
At Edward J. Zarach & Associates, we understand the complexities of global logistics, and we are committed to helping our clients protect their cargo from risks like theft, damage, or delays. Our team can assist with arranging comprehensive cargo insurance policies tailored to your specific needs, ensuring your goods are protected from origin to destination. With decades of experience in international freight forwarding, customs brokerage, and logistics consulting, we provide expert guidance to ensure that your business operations remain uninterrupted, even in the face of unforeseen disruptions.
Don’t leave your cargo vulnerable to theft or damage. Contact Edward J. Zarach & Associates today to learn how we can help you secure comprehensive cargo insurance and keep your supply chain running smoothly.