Reduce Risk of Freight Loss Tips

How to Reduce the Risks of Freight Loss: Tips to Save Your Costs

Posted on:
Jan 11, 2022

It is sometimes hard to predict situations like freight losses. Logistics operations engage many members, each responsible for managing the shipment at a certain level. Although you can’t prevent others from making a mistake, you can decrease the threat of cargo loss on your side. 

What causes cargo losses?

Have you ever tried to account for the shipped items during the peak season? Or take care of numerous inventory operations to list the goods? It is undoubtedly complicated, and there is no wonder freight losses emerge. Peak season shipping is a challenge for business owners of all scales. Extreme consumer demand makes retailers spend less time processing the orders to shorten the delivery time. As a result, you can’t manage your inventory records correctly and see the actual stock status. Increased speed and messy inventory records often lead to losing the goods.

Another cause for the cargo losses lies in insufficient packaging. Poor quality materials and a low count of packaging layers can’t protect your items from damage and contribute to their loss. Inadequate fixation of your packages provokes mechanical movement that can also end with losing the goods during transit.

In addition, there’s a chance of partnering with weak shipping services that don’t keep an eye on the state of your freight. Some carriers don’t take notice of the cargo security, thus forcing freight wastage.

Cargo losses happen for various reasons, but they are all closely related to human participation in the logistics process. The human error typically comes out in inappropriate planning and making wrong choices when working with logistics services. However, there are many possibilities to reduce the risks of freight loss. 

How to prevent freight losses?

Freight losses are frequent for active logistics operations, especially bulk shipping. Still, there are several ways to reduce the risk of cargo loss and make your transit more secure. If you are planning to increase the number of your shipments, it is better to know the best prevention practices.

Reliable containment

Shipping safety starts with the proper packaging method. Poor packaging often results in item damage but can also lead to freight loss. It’s vital to pick reliable containers made of firm materials that are hard to destroy. It will prevent the goods from falling out of their package or being detached by outsiders. When choosing boxes or crates to condense your items, pay attention to density. The less void space you get after packing the cargo, the fewer chances of unwanted movement during transportation.

After packing the cargo into boxes, ensure to seal them accordingly. Sealing crates are necessary if you want your items to remain protected by external packaging without dropping out. Besides, consider using shipping pallets that are optimal for freight fixation. With palletizing, you’ll stay confident of finding the cargo inside the truck after the delivery.

Advanced inventory management

Constant inventory supervision can be surprisingly helpful for keeping a record of items’ quantity and availability. Sometimes, the cases of freight loss happen at the stage of storage, and being unaware of the inventory state can cause miscalculations and understocking. Try to stay in touch with the space that stores your goods to avoid it. Today, warehouses offer control services that don’t require the direct retailer’s participation.

Regular inventory checkups will do the trick for you. You can do it manually or, what’s better, use modern technology to exclude human error. Inventory management operations usually involve completing long lists, and computers will do it much faster so you can focus on your essential tasks. Logistics software connects to the automated warehouse’s system and gathers all the required data about your products. It is easier to detect possible freight losses and find mismatches in your items’ index.

Sufficient insurance

Getting substantial insurance is another way to prevent cargo losses effectively. When planning a shipment, it is necessary to think equally about the physical protection and getting insuring documents. Some delivery services automatically generate inside coverages that are not too reliable for shipping long distances or moving costly goods. Besides, they don’t guarantee money reimbursement of freight loss or damage. 

If you want to be sure about saving the financial value of your cargo, consider getting complex shipping insurance, for example, dedicated cargo insurance. This type of coverage will let you receive the costs back if the freight has been damaged, destroyed, or lost. GoShip works with a long-established insurance provider Falvey Insurance Group that can help you choose a suitable coverage and instruct you on any freight coverage questions.

Professional delivery service

Since many freight losses occur during transportation, it is crucial to cooperate with carriers who supervise the state of your cargo until the very moment of delivery. If your shipment involves several drop-offs, the carrier will check on the freight every time they make a stop. They will also manage transportation conditions and adjust them to maximum secure the cargo. New shipping software and tracking apps allow retailers to stay a participant in the delivery process and receive updates anytime.
GoShip delivery service cooperated with many professional carriers that prioritize freight safety. You’ll be able to choose a suitable transportation container that meets all security needs and track the shipment flow. You won’t have to worry about cargo security with a skillful carrier. Besides, your shipment will remain cost-effective. Use our online tool and get a free quote today!

Written by: