It is not a stretch to say that modern commerce runs at the speed of digital technology. For the most part, our tech doesn't let us down. It facilitates everything from global order processing to cargo delivery across vast distances. But sometimes technology fails. For that alone, it is a good idea for shippers to have delayed cargo insurance. 

Transport delay insurance solutions offer an extra level of protection when time-critical shipments need to arrive on schedule. Because when they don't, receivers often go after shippers to recover any losses they might incur. It's not good enough to blame technology glitches in hopes of avoiding claims. Receivers don't care whether technology prevented a timely delivery. Reasons for delays don't matter. Timely deliveries do.

Why Technology Matters So Much

The technology aspect is important because it is the reality of modern commerce. We rely on digital technologies - in some way, shape, or form - to facilitate nearly every type of business process. But technology is rooted in machines. And machines are not perfect. They break down.

The best insurance against technology failures is a commitment to strong security and regular maintenance. But even the best security and maintenance programs cannot guarantee 100% uptime. There is always the chance that some sort of glitch will shut things down. And in the logistics game, shutting down for even a short amount of time can mean big problems further down the supply chain - problems that could lead to receiver claims against a shipper.

How Technology Disrupts Cargo Delivery

Delayed cargo isn't just a hypothetical. Neither are delays caused by tech failures. As fantastic as modern technology is it isn't perfect. Technology failures happen all the time. And when they do, cargo delivery can be delayed substantially.

Here are some of the most common tech issues known to disrupt cargo transport and delivery:

1. Global IT Outages

While rare, global IT outages are not unheard of. A widespread software failure can cripple computers and networks all over the world. That can disrupt airports, logistics providers, land and sea shipments, and so forth.

Do you remember the CrowdStrike-Microsoft glitch that led to a global IT outage in July 2024? Airports around the world were shut down. A lot of cargo was delayed on that fateful day. Strangely, the incident was related to a minor software glitch that could have been avoided had proper testing procedures been followed.

2. Cybersecurity Risks

A world increasingly dependent on digital systems is also more susceptible to cybersecurity risks. Shipping systems are no exception. A significant threat could cause local, regional, national, or global disruptions in everything from logistics to passenger travel. Cybersecurity breaches can shut down aircraft, trains, and seaside ports.

3. Software Glitches

The 2024 CrowdStrike-Microsoft disruption was just one example of bad software bringing IT systems to a screeching halt. But disruptions don't have to be that major to delay cargo delivery. Even a minor glitch in a terminal operating system can lead to incorrect container placement in a port or on a cargo ship. When containers aren't where they are supposed to be, deliveries are delayed.

4. Integration Problems

Cargo can also be delayed due to challenges associated with integrating new systems. For instance, a shipper might invest in a new inventory system hosted in the cloud. In its attempt to integrate the new application with locally hosted apps, incompatibility issues can stymie efforts to move forward. Shipments might be delayed while the IT team works feverishly to figure it out.

5. Communication Failures

Communication failures have been part of logistics for as long as logistics have existed. In the modern era however, some of those communication failures are directly related to technology. Tech breakdowns can hinder coordinated communication up and down the supply chain, causing delays from start to finish.

Technology Is Not Perfect

Technology has been amazingly helpful in transforming the way the world does business. If you were around before the personal computer and the public internet, you know how complicated it was to ship cargo over vast distances. But modern technology makes everything so much easier.

The other side of that coin is the reality that technology is not perfect. It can, and does, fail from time to time. Failures lead to unhappy customers and claims against shippers. That's just the way it goes. For any shipper who deals in time-critical shipments, the best way to protect against technology-related delivery delays is to invest in delayed cargo insurance.

Delayed cargo insurance provides a financial safety net. It protects against significant losses in the event that cargo gets delayed by something above and beyond the shipper's control. And given how easily shipments can be interrupted, going without delayed cargo insurance doesn't seem to make sense. At least that's my view.

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