What Are Some Common Risks Importers and Exporters Face When Shipping Goods Internationally?

International trade creates opportunities for wholesalers, distributors, manufacturers, importers, and exporters to reach new suppliers and customers worldwide. However, moving goods across international borders can also introduce additional risks that businesses may not encounter in domestic shipping.

From cargo damage and customs delays to geopolitical events and contractual disputes, international shipments can be affected by numerous factors outside a company's direct control. Even a single disrupted shipment may result in production delays, lost revenue, dissatisfied customers, or unexpected expenses.

Understanding common international shipping risks can help businesses strengthen their supply chain strategies and evaluate whether insurance and broader risk management solutions may be appropriate for their operations.

Key Takeaways

• International shipments may face transportation, regulatory, financial, and geopolitical risks.
• Cargo damage, theft, delays, and customs issues can disrupt supply chains.
• Contract terms might determine which party is responsible for various shipping risks.
• Cargo insurance may help address certain covered losses involving goods in transit.
• Risk management strategies extend beyond insurance to include supplier selection, compliance, planning, and visibility across the supply chain.

Why International Shipping Might Carry Additional Risk

Unlike domestic transportation, international shipments often involve multiple transportation providers, ports, customs authorities, warehouses, and jurisdictions before reaching their final destination.

A shipment may travel by truck, rail, ocean vessel, or air before delivery. Each transfer introduces additional opportunities for delays, handling errors, or physical damage.

Businesses must also navigate varying regulations, documentation requirements, currencies, trade agreements, and political environments that can affect the movement of goods.

Because international supply chains are interconnected, disruptions in one region can create ripple effects throughout the entire distribution network.

Common Export Risks and Import Challenges

Cargo Damage During Transit

Physical damage is a common international shipping risk.

• Cargo may be exposed to:
• Rough handling during loading and unloading
• Improper packaging or palletization
• Moisture and water intrusion
• Temperature fluctuations
• Container shifting
• Weather perils during ocean transit
• Equipment failures

Fragile, high-value, or temperature-sensitive products may require specialized packaging and transportation controls to help reduce the likelihood of damage.

Cargo Theft

Cargo theft can occur throughout the transportation process, including:

• Warehouses
• Distribution centers
• Truck stops
• Rail terminals
• Ports
• Temporary storage facilities

High-value electronics, pharmaceuticals, consumer goods, food products, and luxury items may be considered attractive targets for organized cargo theft.

Businesses may help reduce exposure through shipment tracking, secure facilities, vetted transportation providers, and strong inventory controls.

Shipping Delays

International shipments may experience delays for numerous reasons, including:

• Port congestion
• Labor strikes
• Severe weather
• Vessel schedule changes
• Equipment shortages
• Customs inspections
• Documentation errors
• Transportation disruptions

Even relatively short delays can interrupt production schedules, create inventory shortages, or postpone customer deliveries.

Companies operating with lean inventory strategies may face additional challenges from transportation delays.

Customs and Regulatory Issues

International trade requires accurate documentation and compliance with import and export regulations.

Potential issues include:

• Incomplete shipping documents
• Incorrect product classifications
• Valuation errors
• Missing permits or licenses
• Country-of-origin documentation issues
• Restricted or prohibited goods
• Regulatory changes

Documentation mistakes may result in customs delays, additional inspections, penalties, or shipments being rejected or returned.

Maintaining accurate records and staying informed about changing international trade requirements can help mitigate some of these risks.

Financial Risks of International Trade

Shipping internationally can also expose businesses to financial uncertainties beyond transportation itself.

Examples might include:

• Currency exchange fluctuations
• Customer payment defaults
• Supplier insolvency
• Rising freight costs
• Unexpected tariffs or duties
• Inflation
• Banking and payment delays

Businesses may use contractual provisions, letters of credit, diversified suppliers, or financial risk management strategies to help mitigate certain exposures.

Geopolitical and Global Supply Chain Risks

Events occurring thousands of miles away can affect international shipping.

Examples include:

• Armed conflicts
• Political instability
• Trade restrictions
• Economic sanctions
• Port closures
• Natural disasters
• Pandemics
• Civil unrest

These events can interrupt shipping lanes, reduce transportation capacity, or increase freight costs with little warning.

Diversifying suppliers and transportation routes may help improve supply chain resilience when unexpected disruptions occur.

Contractual Risks for Importers and Exporters

Responsibility for goods in transit is not always straightforward.

Purchase agreements and shipping contracts often determine when responsibility transfers from seller to buyer.

International commercial terms (Incoterms®) establish responsibilities for transportation costs, insurance obligations, customs clearance, and risk transfer between buyers and sellers.

Understanding these contractual obligations is important because assumptions about responsibility may not align with the terms of the agreement.

Businesses should consider carefully reviewing shipping contracts and purchase agreements to better understand where potential liabilities begin and end.

Technology and Cyber Risks

Modern international supply chains depend heavily on digital systems.

Importers and exporters often rely on:

• Transportation management systems
• Warehouse management software
• Electronic customs filings
• Vendor portals
• Freight tracking platforms
• Payment systems

Cyberattacks or technology outages may interrupt shipment visibility, delay documentation, or expose sensitive business information.

As supply chains become increasingly digital, cybersecurity has become an important component of operational risk management.

How Cargo Insurance May Help

Cargo insurance may help address certain covered losses involving goods while they are in transit.

Depending on the policy and circumstances, cargo insurance may help cover certain covered losses resulting from events such as:

• Physical damage
• Theft
• Certain weather-related incidents
• Transportation accidents
• Other covered perils

Coverage, exclusions, deductibles, limits, and conditions vary by policy.

Cargo insurance is only one part of a broader international shipping risk management strategy and should be evaluated alongside contractual obligations, shipment values, transportation methods, and operational risks.

Best Practices for Managing International Shipping Risks

Businesses involved in importing and exporting can often strengthen their overall risk management strategy by considering the following practices:

• Carefully selecting transportation providers and logistics partners
• Reviewing supplier reliability and contingency plans
• Maintaining accurate shipping documentation
• Understanding Incoterms® and contractual responsibilities
• Improving shipment visibility through tracking technology
• Diversifying suppliers and shipping routes when practical
• Developing business continuity plans for supply chain disruptions
• Periodically reviewing commercial insurance programs as operations evolve

A proactive approach may help organizations respond more effectively when unexpected disruptions occur.

International Shipping Risk Management Is About More Than Moving Freight

For wholesalers, distributors, manufacturers, importers, and exporters, international shipping involves more than transporting products from one location to another. Every shipment carries operational, financial, contractual, and regulatory considerations that can affect profitability and customer relationships.

While not every disruption can be prevented, understanding common export risks and implementing practical risk management strategies can help businesses build more resilient global supply chains. Evaluating shipping practices, contractual obligations, and insurance solutions regularly can also help organizations prepare for an increasingly complex international trade environment.

Acrisure Can Help

Businesses that import or export goods face a broad range of transportation and supply chain exposures that extend well beyond cargo in transit. Acrisure's transportation and wholesale and distribution specialists work with organizations to help evaluate operational risks, contractual obligations, and insurance solutions while connecting clients with experienced Risk Resources professionals.

Whether your business is shipping internationally, managing complex supplier networks, or strengthening overall supply chain resilience, we can help you explore business insurance solutions, cargo insurance solutions, risk management strategies, and other business solutions designed to help support your operations.