STUDY ON RISK MANAGEMENT IN SHIPPING AND LOGISTICS OPERATIONS

Abstract

Shipping and logistics activities are very important in global trade and economy, because they make sure that goods are transferred in an uninterrupted way through different domestic and international routes. In contrast, the intricate logistics chains and the engagement of a large number of intermediaries turn the industry into a place with different kinds of risks lurking around. Some of the main risks that logistics face are those regarding the correctness of documentation, postponements in operations, unproductiveness in cargo handling, fluctuations in finance, problems with technology and the impact of nature. Each of these risks is damaging the logistics operations in terms of continuity, quickness and reliability. This research tries to identify and analyze the risks in shipping and logistics through a literature review and a study on the factors that lead to supply chain disruptions. It is founded purely on secondary sources like journals, reports and logistics studies. The outcomes show that the operational risks such as delays and poor coordination tend to be most prevalent and the mistake-prone documentations still create substantial delays at customs and regulatory checkpoints. Also, cargo-handling problems, financial issues and external interference cause inefficiencies too. The paper suggests that wrong documents, unskilled manpower, lack of technology and poor monitoring are the main pillars of ineffective risk management. On the other hand, by implementing suitable risk management practices, the logistics operations can be transformed into more trustworthy, resilient and efficient ones.