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