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Risks and challenges

In this step, we look at the risks and challenges of international logistics.

Risks include:

Disruptions or geopolitical threats

  • Transport disruptions caused by strikes or natural disasters
  • Geopolitical events – for example, the US-China trade war

Tracing and delay risks

  • Track and trace can be difficult because of multi-modal transportation or consolidation (combining smaller shipments into one, as a way of utilising a vehicle’s full capacity and reducing carrier costs)
  • Goods ‘disappear’ or arrive late because of various checks during transportation
  • Documentation has to be correct or causes delays

Multi-national risks

  • Local infrastructure can be deficient in developing countries, compared with developed countries
  • Language and local customs can be frustrating

Challenges include:

  • Longer supply lead and transit time
  • Multiple consolidations can cause delays
  • Transport costs can vary owing to multiple freight routes
  • Currency fluctuations
  • Difficulty in monitoring delivery
  • Passing through multiple countries brings with it a variety of legal and local issues

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This article is from the free online course:

Introduction to International Logistics

Coventry University