Resilience in Motion: Rethinking Risk for Marine and Cargo

The global landscape has shifted — and with it, the risks associated with transporting goods. For years, many organisations have relied heavily on insurance as their primary means of managing marine exposure. However, in today’s environment of ongoing disruption, risk transfer alone is no longer enough. From pandemic-related volatility to geopolitical tension, supply chain complexity is increasing — and with it, the need for more resilient strategies.

Proactive organisations are broadening their risk lens. They are investing in building visibility across their supply chain, embedding physical security and protection into logistics, and using data to inform not just operations — but to lead the procurement strategy, supply chain resilience planning, and improving insurance outcomes. This article explores three integrated risk management approaches that can help businesses protect goods in motion, strengthen continuity, and future-proof their approach to marine cargo and logistics risk.

Boost Supply Chain Intelligence: Visibility as a Strategic Advantage

Many organisations have limited visibility over the transportation legs of their supply chain. While supplier performance and warehouse controls may be monitored effectively, once goods are in transit, most businesses rely just on delivery notifications to indicate success — or uncover issues too late. This visibility gap comes with significant risk. Overaccumulation, stolen cargo, and insufficient accountability with carriers can result in delayed claims, underinsurance, or exposure to uninsured losses.

Today’s technologies already offer a solution. GPS trackers and real-time cargo monitoring tools allow organisations to map cargo routes, track environmental exposures, and detect deviations in real-time, enabling response intervention. These tools not only reduce the likelihood of loss, but also generate insights that help organisations improve planning, challenge vendors, and identify accumulation points they may not have previously recognised.

“Businesses typically utilise trackers for theft prevention on high value cargo but in doing so I have seen clients benefit from increased visibility as a secondary outcome. They might be protecting their individual shipments and at the same time discover that multiple shipments were converging at one port and exceeding their insurance limits without them knowing,” says Dr Nick Chapman, Aon’s Head of Cargo and Logistics, Asia. “That enhanced supply chain visibility can be extremely powerful when it comes to supply chain risk management and insurance purchasing.”

Beyond individual shipments, companies can gather aggregated data by tracking a sample of cargo across different lanes over time. These insights are invaluable for identifying risk patterns and bottlenecks, holding logistics providers accountable, and informing strategic decisions.

“This is about giving risk managers more tools — not just to avoid loss, but to make better decisions around how and where they move goods,” Chapman adds. “It arms them for conversations with insurers, logistics partners, and internal stakeholders alike.”

As the use of IoT sensors, AI and predictive analytics becomes more widespread, supply chain intelligence will be a key differentiator in this disrupted world. Organisations that invest now in the capability to see more — and act on it — will be better positioned to navigate volatility tomorrow.

Beyond operational gains, this visibility also has significant implications for compliance and governance. Certain industries have always had a high demand on traceability and compliance with regulatory standards. Increasingly, regulators and investors are demanding greater transparency over ESG risks, modern slavery exposure, and supply chain ethics. Real-time monitoring and data capture not only mitigate logistical and insurance risks but also support reporting obligations and broader corporate responsibility goals. For multinational organisations operating across jurisdictions, this level of insight can help demonstrate due diligence and responsiveness to emerging regulatory requirements — particularly in sectors with high-value or sensitive cargo such as foods, feeds, ingredients and pharmaceuticals. As scrutiny increases, supply chain visibility is not just a commercial advantage — it’s fast becoming a licence to operate.

Building Resilience Through Physical Risk Controls

Marine cargo losses are frequently the result of avoidable factors such as improper packaging, exposure to moisture, environmental condition control loss, theft, or inadequate handling. Despite investing significantly in product quality and innovation, many companies continue to rely on low-cost transportation options with limited oversight, leaving goods vulnerable during transit.

Marine risk engineering addresses this challenge by focusing on the physical protection of goods in motion. It involves practical, end-to-end measures that improve shipment resilience, including:

• Packaging, handling and storage recommendations
• Carrier selection, vetting and real-time ID verification processes
• Container inspections and load, stow and securing protocols
• Cold supply chain management for temperature-sensitive goods
• Security technology and procedures for high-value or theft-attractive items

Chris Law, head of Aon’s US Marine Risk Engineering and Loss Control practice notes that this is where many businesses are often exposed. “We see companies spending huge amounts producing a highly sensitive product — like hi-tech components or consumer electronics, for example — then assigning transportation without establishing robust security protocols which is a vulnerability that sophisticated cargo thieves will discover and exploit. Risk engineering is about helping clients think more critically about layered security and damage in transit prevention across their entire logistics profiles to proactively address vulnerabilities before losses happen .”

Beyond preventing loss, physical risk controls can protect shelf life, prevent spoilage during delays, and improve responsiveness when an event occurs. They also play a vital role in demonstrating and differentiating proactive risk management to insurers — supporting better terms, fewer claims, and potentially reduced premiums.

“Many businesses rely on their insurer for risk management, led by the insurer,” Chapman notes. “What we’re doing is shifting that conversation earlier in the process. Rather than waiting for insurers to impose conditions, we’re helping clients proactively understand and address their exposures with independent support from their broker.”

Aon is the only broker to offer in-house marine loss control services. Engaging us for marine risk engineering capabilities, enable the story of the client’s best loss prevention practices and their positive impact on loss performance to be understood by insurers, increasing appetite and risk attractiveness.

This shift gives businesses more control over their risk posture and allows them to align loss prevention with their own commercial priorities — not just the underwriter’s view. By working with brokers who offer in-house marine risk consulting, businesses gain both advocacy and expertise to shape a more resilient, data-informed risk strategy.

Strengthening Renewal Outcomes Through Data-Driven Risk Management

Risk engineering is not only a loss prevention tool, it also plays a critical role in delivering strategic value during renewal.

By capturing data through supply chain monitoring and using that data to inform a physical risk strategy, businesses can build a far more compelling case to insurers. They can demonstrate a mature, proactive approach to managing risk, justify requested limits, and with our support even secure more favourable pricing or coverage enhancements.

“Insurers increasingly want to see that risk is understood, controlled, and monitored,” says Ben Rolfe, Aon’s Head of Commercial Risk, Australia. “They don’t just want a spreadsheet — they want to know the client is taking action. The more data we can provide, the fewer assumptions that are made around pricing adequacy and capital deployment and ultimately, the better the outcome.”

For instance, tracking cargo across multiple transit legs can reveal unexpected accumulation points or previously unrecognised exposure to natural catastrophe risk. This enables risk managers to adjust routing, reassess insurance limits, or restructure policies accordingly.

Importantly, the ability to provide this level of detail differentiates a business in the eyes of underwriters. It signals strong governance and a commitment to continuous improvement — all of which are valued in today’s insurance market.

“We work very hard to secure the best coverage possible for our clients but the fact remains that an ‘all risks’ cargo policy is not exactly what it says and as standard it comes with a long list of coverage exclusions,” says Chapman. “That’s why organisations must consider how else they’re protecting themselves. Marine risk engineering is one way to address those gaps and improve outcomes both operationally and financially.”

The risk environment for marine and cargo operations continues to evolve, demanding a more sophisticated approach to resilience. Businesses face mounting pressure to deliver goods reliably, safely, and cost-effectively — despite growing volatility. In this context, relying solely on traditional insurance to manage risk is no longer enough.

A resilient supply chain is one that is visible, protected, and data-enabled. By combining real-time intelligence, practical loss control, and strategic risk positioning, businesses can reduce claims, improve continuity, and demonstrate their risk quality to insurers. Marine risk engineering is a powerful tool to support this shift — and brokers with in-house expertise are well-positioned to deliver.

As Chapman puts it: “This isn’t about doing something new for the sake of it. It’s about doing what’s necessary to thrive in the current volatile trading environment — and that means treating risk management as a capability, not just a cost.”