Shipping High Commodities
In 2018, a little over 293 million Samsung smartphones were shipped while Apple was not far behind with approximately 212 million of its smartphones distributed across the globe. These tech industry giants seem to have mastered shipping high street value commodities, which is not an easy accomplishment today. However, the category of high risk commodities encompasses many types of merchandise, from everyday items, such as smartphones, televisions and refrigerators, to one-of-a-kind artwork, fine wines and pricey watches. These products are not only expensive, but also often fragile in nature; therefore, further complicating the shipping process. There are shippers who specifically cater to transporting exclusive items, such as antiques, while many other shipping companies deal with the bulk of items classified as high street value commodities.
Threats
High street value commodities are particularly susceptible to risks. Many of these threats have existed for years while others have come into play more recently. Below are two major threats that shippers are concerned about today:
Piracy
Piracy has been around for centuries, and in recent years it has staged a comeback. Ships traveling through the waters around Asia and West Africa have experienced the largest number of pirate attacks. However, not only are ocean carriers impacted by piracy, but also air freight companies experience this same issue, which is called air piracy.
Cyber-Attacks
Cyber-attacks are the newest form of piracy that is hitting ocean and air freight carriers. Today’s cargo ships and aircraft are more connected than ever because of new IoT (Internet of Things) applications. However, this enhanced connectivity has made it possible for hackers to re-route shipping vessels, resulting in changes in delivery times and locations of containers. Sophisticated cyber-attacks are the second major risk for airlines. Only natural disasters surpass it to top the list. These types of attacks can interfere with aircraft systems, (in flight or on the ground), control the airplanes, and even ground entire fleets.
Packaging
When shipping high street value merchandise, packaging is particularly critical not only to ensure its good condition, but also to help protect it against the types of threats mentioned above. Labeling is a crucial aspect of packaging. According to transportation consultant, Jeremy Carley, “When transporting high street value commodities, many companies, such as Apple, conceal the contents of their packages. This is particularly critical when crossing the belts and delivering these valuable items.”
Since many products are shipped overseas, crating and binding merchandise on a pallet is important. Technology products, such as televisions, have many components inside. The tiniest bit of jostling during transit could prevent it from working.
RFID – Radio Frequency Identification, plays a critical role in the packaging of high street value commodities. In particular, larger carriers are utilizing this technology. By incorporating RFID tags into shipping container pallets, or other reusable assets, shippers have immediate, real-time information regarding not only a product’s location, but also its quantity, history and destination. Not only are logistics simplified, but the safety of the shipment is further enhanced.
Adequate Insurance Coverage
With high risk commodities, it is particularly important to select the right type of insurance company and coverage. Just like specialized shippers, there are insurers that deal specifically with high risk commodities. It is key to select a rated A insurance carrier. And, in terms of coverage, consider an all-risk policy, which ensures there are no gaps in insurance. Also, full replacement value on a high risk shipment should be taken into account. This is especially important if you are using one of the major shippers, such as FedEx or UPS, because the maximum declared value per package is $50,000.
Worried about Shipping High Risk Commodities?
When managed properly, shipping high risk commodities should not keep you up at night. As a 3rd party logistics company, AllGreen, has the proven track record and professional experience to help ensure your high street value items are shipped correctly. Our team has worked for national shipping carriers; therefore, we created a solution that takes care of any gaps in coverage. Plus, our policy underwriter is rated A++ by A.M. Best, making it at the top of its class.
For further information about our services, contact us today at info@ag-sc.com or 847-531-2209.