Six Significant Risk Categories in Transportation

Six Significant Risk Categories in Transportation

Product loss: They are presented in the form of product pilferage, shipment jettison, product damage or hijacking, and piracy. An example of product loss includes the product pilferage of Army medical supplies in 2009, which entailed the loss of close to $ 2 million worth of the company’s medical equipment stolen in transit (Kiba-Janiak, 2016).

Product damage: damages in products can come as a result of many reasons arising from inactions and actions related to the side of the freight handlers and equipment operators. Some of the product damages occur in the form of equipment accidents, inadequate methods of handling freights, improper equipment loading measures, among others (Novack et al., 2019). An example of product damage includes when a palletized product gets submerged in water while in transit, thus, getting damaged.

Product Contamination: When transporting pharmaceutical goods, foods, and other related consumables, there is usually the impending risk of contamination. Freight contamination can be a result of climate control failure, exposure to contaminants, and product adulteration (Kiba-Janiak, 2016). An example of product contamination is when there are environmentally sensitive goods, tampering with their nature.

Delivery delay: Hick-ups may cause a firm frustration, and even financial impacts include poor weather, congestion in seaports, roadways, and railways and equipment malfunction (Kiba-Janiak, 2016). An example of delivery delay is when there are heavy rains, thus causing flooding, which in turn limits transportation and movement from one place to another by the use of roads.

Supply chain interruption: Transportation risks come about as a result of improper execution of daily operations. Fright flows might slow down or be interrupted by poor decision makings, technology glitches, and employee errors. Some of the examples of supply chain interruptions include labor disruptions, industry consolidation, and shortage of goods and products for transportation.

Security Breach: Terror attacks, crime activities from organized groups, and illegal immigration have led to the universal inability to secure freights. Global transportation firms must improve their procedures and policies to protect in-transit freight (Novack et al., 2019). An example of a security breach includes aircraft hijacking.

Comments on Student’s Contribution

Yojairy Martinez

This contribution looks less detailed; thus, one fails to grasp the risk categories involved in transportation fully. However, the examples provided concerning the types of risks in transportation are precise and relates to each group given. However, I think if more work had been done, and more expounding of the explanations on the different individual types of risks in transportation, then this work would be of top-notch educative. This approach is an essential point concerning transport. More description of the six categories on the transport can make it more powerful. I wish loss, damage, contamination, delays, interruption, and breach could get some space in this work. A little more explanation of these six aspects could perfect this work. I feel that the accounts are scanty, but the main points are well highlighted. Otherwise, the work is an excellent skeleton to allow more research on this topic. It provides the basis of more significant thoughts on the subject, which is equally important.

Isaac Chocron

I think his contribution is excellent. Firstly, it provides a detailed explanation of the six different categories of transportation risk. Also, it gives good examples concerning the different types. For instance, product damage, which is a transportation risk category, provides an in-depth explanation of what causes it. Mentioning that it is the result of actions or inactions from the equipment operators or freight handlers is an excellent observation. Citing that it is one of the risks that need to be checked whenever there is any shipment of goods is fantastic. One can clearly understand all about this transportation risk category. The examples provided in these risks are amazing, and so are the rest of the types of transport risks provided. The six categories are well captured. This coverage can help get to countermeasures. With these details, it is easier to understand possible challenges in logistics. Precisely, this a great work.

References

Novack, R. A., Gibson, B. J., Suzuki, Y., & Coyle, J. J. (2019). Transportation: A Global Supply Chain Perspective.

Kiba-Janiak, M. (2016). Risk management in the field of urban freight transport. Transportation Research Procedia, 16, 165-178.