Tag: marine cargo claims
Intermediaries serve an important function since, without them, it would be nearly impossible for companies to deliver their products to the end user. These freight forwarders can provide services without the need to own or control the entire supply chain. The use of these intermediaries helps to serve many of the critical functions associated with reducing transaction costs, as well as diversifying risks and exposures associated with the transportation of goods.
Problems can and will occur during transit from time to time, so there is a definite need for cargo insurance to address any marine cargo claims filed. This serves as protection to supply chain intermediaries. Distribution of goods is an important part of US commerce, and these intermediaries are generally independent companies or organizations within the channel that make products available to consumers.
Supply chain agencies face difficult challenges
Any number of transit risks can be quite costly, and can range from something as simple as rough handling of goods resulting in damage, to theft, accidents or collisions, non-delivery due to jettison (the act of casting goods from a vessel or aircraft to lighten or stabilize it), or natural disasters, just to name a few of the concerns.
There are four main types of intermediary: agents, wholesalers, distributors, and retailers. Agents, or brokers, are individuals or companies that act as an extension of the manufacturing company whose main job is to represent the producer to the final user in selling a product.
Wholesalers, on the other hand, take title to the goods and services that they serve as intermediaries for. They are independently owned and own the products that they sell as well. They buy merchandise in bulk and store the products in their own warehouses until the time comes to resell them to other intermediaries.
A distributor will usually align him or herself to complementary products and therefore can maintain a closer relationship with their suppliers, while retailers, both mom and pop stores, along with large chains like Target and Walgreens, purchase products from market intermediaries and sell them directly to the end user for a profit.
When a loss occurs, whether due to intermediaries who cannot deliver on time, or experience issues or incidents that result in a loss of cargo, marine cargo claims will often be the result. Its important to have insurance for supply chain intermediaries to help cover any losses.