June 24, 2020 | Industry Insights

Warehouse Crisis and the Future of Storage

Share This:
Featured Image

 

Ever have to suddenly store 9 containers of PPEs? Or 20 containers of athletic shoes? Unfortunately, questions like this are now commonplace due to the supply-chain disruptions caused by the global pandemic.

These questions, in addition to an assessment of current industry trends and innovative on-demand warehousing solutions were discussed on the recent webinar presented by the Airforwarders Association. Below are some of the key takeaways from the dynamic discussion.

Prior to the Coronavirus crisis, on-demand warehousing was growing due to consumer demands for same-day and next-day shipping close to the source. And as we’ve seen in many sectors, the crisis has accelerated the pace of change.

When the crisis hit early this year, supply chains were up-ended if not completely shut down. In many cases this has left freight forwarders searching for storage solutions for their shippers.

According to Brandon Fried, AfA Executive Director, “we’re facing a plethora of concerns nowadays… especially as it relates to risk management…”

On the webinar, Ken Kellaway, CEO E*Fill America and RoadOne Intermodal Logistics shared his perspective on current trends.

Kellaway stated that, “the big dip in rates in transportation sector, should come back soon. Demand will accelerate as we open up the economy.”

Also, he sees capacity tightening up on the truck side as well as the warehousing side, as the extensive inventory is starting to burn off again and big box stores are starting to reorder. He sees very strong rates on the air freight side of things since the planes have been grounded, but with the opening, more will shift back to ocean.  With further market corrections expected, this means continued uncertainty where unexpected warehousing of goods may still be needed.

 

Warehouse Insurance Policies & Risk Management in the Face of Supply Chain Disruptions

Shippers and forwarders should plan for a future of supply-chain disruptions, thereby driving the need for warehousing and storage solutions. They should also consider the need for additional warehouse coverage for the items that now require storage.

“There are many considerations to keep in mind for freight forwarders from a risk management perspective”, states Rick Bridges, VP of Roanoke Trade. “Forwarders need to know not only if the warehouses are insured, but what about the terms and conditions of warehouse insurance policies? How are they limiting their liability?”

“And this really is not unlike transit, so for a forwarder really understanding it to be similar to what a carrier has for limits of liability. Just like carriers, warehouses limit liability, and they are not liable for the losses they don’t create,” states Bridges.

On the webinar Rick continued to share best practices for arranging storage at warehouses. He urged the audience to make sure the cargo owner is aware of the warehouses’ terms and conditions coupled with their limits of liability.

Also, be wary of warehouses that sublease floor space to other companies. It’s possible third parties will have access to your merchandise.

Rick concludes, “You really have to know what you’re signing yourselves up for. Certainly, shippers may have concerns about their product being comingled with other products or potentially even things like intellectual property rights being exposed to other folks. Just make sure there’s visibility between the shipper and where and how their goods will be stored.”

For more information on warehouse insurance policies or risk management best practices, please contact Rick or your Roanoke Trade representative at 1-800-ROANOKE.

We thank the AfA for the opportunity to participate in the webinar.

RELATED TOPICS

  • Warehouse Legal Liability Insurance
  • Transportation Legal Liability Insurance
  • Shipper & 3PL Contract Considerations
  • Is It Time to Sharpen the Saw? Welcome to KnowledgePort
Share This:

Related


Guarding Against Fictitious Pickups and Cargo Theft: Tips and Training

Fictitious pickups are increasing in North America. In the US, the percentage of cargo thefts due to fictitious pickup rose from 1% in 2022 to 17% in 2023. Strategic theft patterns are also rising, where thieves use identity theft and fraud with fictitious pickup and brokering schemes to obtain loads from freight locations. Combatting this menace requires a combination of vigilance, technology, and a well-trained staff. Let’s explore some effective strategies for guarding against fictitious pickups and minimizing the risk of falling victim to scams. Per Tony Pelli, Practice Director, BSI Consulting, Specializing in Supply Chain and Security Risk Management, […]

Cargo Insurance, Industry Insights

Leadership Excellence: Karen Rzeszutko Represents Roanoke on USCIB Board

We are excited to share that Karen Rzeszutko, President of Roanoke Insurance Group Inc. has been appointed to the Board of Directors of the United States Council for International Business (USCIB) for the 2024-2026 term. This appointment recognizes Karen’s outstanding leadership and her significant contributions to the industry. The USCIB, a prominent organization dedicated to promoting the success of U.S. businesses globally, has welcomed new and reelected members to its Board of Trustees and Board of Directors. The announcement, made on May 20, 2024, in New York, NY, includes a diverse group of leaders from various sectors who will bring […]

Industry Insights

New Report by BSI Global Intelligence Outlines Leading Causes of Increased Theft

Increased Prices of Fuel, Agricultural Products, and Other Goods are Leading to Increased Theft In partnership with Roanoke, BSI’s Global Intelligence Analysts have provided a high-level outlook on the top supply chain risks expected in upcoming months, based on data and trends from the first three quarters of 2022. BSI’s data shows that thieves globally are increasingly targeting agricultural products, employee belongings, and automotive parts. This is partially due to increased food insecurity worldwide, and inflation driving up the prices of goods like agricultural products and fuel. The combination of these two factors makes these goods more lucrative to steal. […]

Industry Insights

Roanoke is the leading provider of insurance and surety solutions for transportation and logistics providers. In fact, we are recognized as the most reliable source for U.S. customs bonds.

Contact

If you have any questions or need help, feel free to contact with our team.

800-762-6653

US CORPORATE HEADQUARTERS

1501 E. Woodfield Road

Suite 400W

Schaumburg, IL 60173


CANADA CORPORATE HEADQUARTERS

390 Bay Street

Munich Re Centre, 22nd Floor

Toronto, ON M5H 2Y2

Solutions that Go the Distance.

© 2024 Roanoke Insurance Group Inc.

Better Business Bureau logoCoverholder at Lloyd's logo