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Risks and challenges

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

© Coventry University. CC BY-NC 4.0
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International Logistics: A Beginner’s Guide to Logistics Management

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