Cost of Damage During Transport

Damage to cargo during transport can have significant financial and logistical ramifications for both the shipper and the receiver. The financial impact alone should be enough to recognize the importance of your load securement components and proper installation. But there are several other areas that can ultimately have an impact on your bottom line. 

​Some of the potential consequences of cargo damage include:

1. Financial Loss: As we mentioned above, damage to cargo can result in immediate financial loss for the shipper, as they may need to compensate the receiver for the damaged goods. In addition, the receiver may need to reorder or replace the damaged goods, which can result in additional costs - costs of new product, costs to transport new product and perhaps to return damaged product as well. 
   
2. Delayed Deliveries: If cargo is damaged during transport, it may not be able to be delivered on time, which can result in delays for the receiver. This can be particularly problematic if the cargo is time-sensitive or if the receiver is relying on the cargo to complete a project or fulfill an order. This is a logistics nightmare and one that can be easily prevented when you partner with a load securement expert that has your best interests (and your cargo’s) at heart. 
   
3. Damage to Reputation: Damage to cargo can damage the reputation of both the shipper and the receiver. If the receiver receives damaged goods, they may be less likely to do business with the shipper in the future, and negative reviews or word-of-mouth can harm the reputations of both parties. In a world where customers are quick to judge, and where reviews and reputations are so critical, this becomes a significantly important aspect to monitor. 
   
4. Increased Insurance Costs: Often referred to as a necessary evil, we all work to keep those insurance claims to a minimum. But, if a company experiences frequent damage to their cargo during transport, their insurance costs may increase, as insurers may view them as a higher risk. We often refer to our dunnage bags, corrugated dunnage, and other load securement components as the ‘#1 insurance you can get for your cargo!’ Basically, what we mean is, when you work with us - we stand behind our products and we provide customer service to ensure proper load technique and look for ways to save money and ultimately best protect your cargo during transport. This helps reduce claims and helps our partners save money!
   

If you want some hard numbers, and numbers don’t lie - according to a survey conducted by logistics software provider CargoX, around 65% of shippers reported that they have experienced cargo damage during transport. The survey also found that the average value of damaged cargo per claim was around $17,000, with the most common causes of damage being inadequate packaging, improper loading, and rough handling. Another study by the American Trucking Associations found that cargo theft and damage cost the trucking industry over $15 billion per year.

Overall, it is clear that damage to cargo during transport can have significant financial and logistical consequences for all parties involved. So how can you prevent damage? Contact the experts in the industry and partner with Superior Packaging Company. We have the experience, the quality, and the customer service to protect your cargo and prevent damage. Don’t be part of the increased costs due to damage, be the solution and work with us!

Reduce Damage Today!