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Navigating cargo disruptions: 5 strategies to improve supply chain resiliency

Discover how organizations reliant on timely cargo goods delivery can identify pressure points and implement proactive strategies to mitigate risks. Learn essential tactics to maintain operational continuity and safeguard your bottom line against cargo disruptions.
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By John Frazee , 

Marine, Cargo & Logistics Growth Leader

04/14/2025 · 3 minute read

The successful movement of goods relies heavily on a robust and resilient supply chain and logistics system. Any disruption to the movement of cargo — whether by sea, air, rail, or truck — can have significant repercussions, including loss and damage of cargo. Cargo transportation challenges not only affect the immediate delivery of goods but also may have broader impacts on today’s already fragile supply chains.

The interconnectivity and convergence of modern supply chains have led to increased vulnerabilities to a growing number of risks. For organizations that depend on the timely delivery of goods, understanding potential pressure points and taking proactive measures to mitigate risks is critical for maintaining operational continuity and protecting their bottom line.

Key challenges that could lead to cargo movement disruptions

Today’s intricate global supply chains are susceptible to a number of factors that could disrupt the flow of cargo and potentially lead to loss of goods. These include:

  • Natural catastrophes. Hurricanes, earthquakes, drought, windstorms, floods, and other natural disasters can severely damage transportation infrastructure, including ports, roads, and warehouses. In addition to transportation delays, cargo already in transit may also sustain damages or complete losses. The impacts of global climate change can create uncertainty about the potential impacts of these potential natural catastrophes.
  • Geopolitical challenges. Political instability, trade disputes, and terrorism can hinder the movement of goods across borders. Sanctions, tariffs, and civil unrest can result in increased costs and delays, while terrorist attacks targeting transportation hubs can disrupt cargo operations and damage cargo itself.
  • Cyber threats. Cyberattacks can pose a significant threat to global supply chains. Malicious actors can target logistics companies, ports, and warehouses, leading to potential disruptions in cargo movement, misappropriation of goods, or data breaches.
  • Labor issues. Worker shortages can create bottlenecks in cargo transportation. Further, potential strikes could bring critical infrastructure, such as ports, to a halt, resulting in significant delays in the movement of goods and heightened exposure to loss or theft.
  • Changing trade policies. Shifting trade regulations can impact the cost and movement of cargo. Aside from leading to higher prices, increased tariffs can affect the valuation of goods in transit, complicating insurance coverage and risk management strategies.

Proactive risk management essential to mitigate evolving challenges

Disruptions to the movement of cargo can lead to significant costs and have ripple effects throughout the supply chain. To mitigate these risks and minimize their impact, organizations should consider a number of actions that can help them better prepare for potential disruptions and better safeguard their operations, including:

  • Assess and quantify potential risks. Cargo owners must conduct thorough risk assessments to identify vulnerabilities that could impact the transportation of critical goods and potentially lead to damage or loss. Evaluating the likelihood and potential impact of various risks, such as natural disasters, geopolitical pressures, and cyber threats, and determining the potential cost of these disruptions can help organizations calculate the possible ultimate cost of these challenges.
  • Develop contingency plans. After identifying and quantifying potential impacts, senior leaders should outline clear response protocols that can be activated once a disruptive event occurs. This proactive approach better enables responses as soon as a challenge arises or is identified.
  • Enhance visibility across the supply chain. Considering the intricate nature of supply chains and their vulnerability to various risks, it is essential to have a clear understanding of a product’s journey. Enhanced visibility may allow for early identification of issues that could impact the transportation of cargo. Technologies that track cargo movement in real time can be instrumental in identifying disruptions early and facilitating quick decisions to mitigate risks.
  • Identify gaps in existing insurance programs. Collaborate with your insurance advisor or broker to review existing insurance programs and identify any exposures that may not be covered. Consider additional solutions that can enhance your protection. For example, stock throughput insurance can provide coverage for goods in transit while parametric insurance solutions can offer financial protection in the event of delays caused by specific triggers, such as natural disasters.
  • Regularly update product valuations. Fluctuations in the value of goods could mean that insured limits are no longer sufficient to cover potential losses. Regularly review the value of products being transported and update insurance policies to align with any changes in valuation.

Healthy supply chains rely heavily on the efficient, timely, and successful transportation of goods. The interconnectedness of global trade means that disruptions in cargo transportation and risk of loss or damage to goods can have far-reaching consequences, impacting not only individual organizations but also the broader economy.

By proactively identifying potential risks, developing contingency plans, and maintaining visibility throughout the supply chain, organizations can better mitigate the impact of disruptions and could help with the continuity of operations. 

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