Logistics Expert Evaluates International Cargo Insurance Dispute

Case Overview

This case involves a manufacturer of specialized lubricants and surface treatments for close-tolerance manufacturing that hired a logistics firm to transport millions of dollars worth of product from Europe to its final destination in the United States. While en route to its final destination in the United States, the cargo was destroyed due to an accident. Since then, the insurer has refused to pay for the loss, asserting that the policy governing this shipment was changed while it was in transit. The loss of this shipment, and the subsequent failure of the insurance company to pay for the loss, forced the manufacturer out of business.

Questions to the Transportation expert and their responses

Please briefly describe your work in logistics.

I was with a major logistics company from 1987 until late 2014, during which time I rose to Vice President of Operations. In that role, I directed operations for the largest of the company's seven regions, which included approving contracts and setting profitability standards. I was mainly focused on domestic shipping, though I do have some exposure to international logistics as well.

specifically your experience arranging appropriate insurance coverage.

I had many instances requiring additional insurance, and I am highly knowledgeable about that process. I am also knowledgeable of the obligations that fall on a logistics company as a third party to a manufacturer/insurer relationship.

About the expert

This logistics executive has over 30 years of experience providing transportation and intermodal solutions. He spent over 27 years with J.B. Hunt, one of the leading third-party logistics companies in the United States. Currently, he works as a Management Consultant with Linq Partners, a transportation consultancy. The expert has experience managing budgets in excess of $250 million and is highly knowledgeable of fleet management, operational efficiencies, and safety/maintenance procedures.

E-077552

Specialties:

Transportation