In the early stages of the cargo shipment industry, transportation was mostly used to ship finished goods for export from one country to another. Over time, advancements in computing and the standardization of shipping containers allowed companies to also use cargo shipping to source components from around the world, allowing manufacturers to lower their shipping and production costs.
The standardized shipping container is 40 feet long and made to fit and stack onto ships, trucks, and trains.The global supply chain virtually revolves around the shipping container. And now, these shipping containers have been piling up at a bottleneck. Ports are overflowing with containers, clogging up at terminals. Meanwhile, many manufacturers are not able to get the shipping containers they need to have their goods shipped.
Supply Chain Disruptions
Bloomberg reports that supply chain shortages are nearing historic levels amidst a historic pandemic. The increase in shipping volumes can be attributed to consumers shifting their demand from services to goods, favoring online shopping over in-store shopping during a time of social distancing. With the significant increase in consumer demand, Americans have become more reliant on commercial trucking. Under the pressure of consumer demands, the commercial trucking industry now has a relative shortage of qualified truck drivers.
The Intermodal Supply Chain Problem
The supply chain is in dire need of more truckers to pick up cargo from the overflowing docks. The situation has become so alarming that legislation was recently passed to allow the Federal Maritime Commission to pressure shipping companies to prioritize containers for domestic manufacturers.
The need for more truck drivers to pick up intermodal freight is a problem for the supply chain, but also a great opportunity for trucking companies. Fleets can capitalize on the opportunity to help fix the shipping shortage by supplying trucks and drivers to pick up the intermodal freight. In order to transport intermodal freight, fleets must have insurance that is compliant with the Uniform Intermodal Interchange and Facilities Access Agreement (UIIA).
What Are Some Of The Insurance Requirements Of The UIIA?
The UIIA has a series of insurance requirements, some of which include: “Auto liability policy for $1 million combined single limit covering any or scheduled/hired autos.”; “A commercial general liability policy for $1 million per occurrence.”; “[…]Equipment Providers may also require to be named additional insured on general liability and trailer interchange as well.” Individual Equipment Providers may have other insurance requirements including cargo, trailer interchange, and workers compensation.
This article is not an exhaustive list of all insurance requirements for the UIIA. We highly recommend speaking to our commercial trucking insurance agents to learn more.
Business Growth Opportunities For Commercial Trucking Companies
The United States is experiencing a relative supply shortage amidst rising consumer demands for deliveries, fueling opportunities for growth in the trucking industry. Uncertainty affects every industry—and the trucking industry is no exception. These uncertainties can be managed with the right insurance coverage. At SWAN Insurance, we advise fleet owners to help them meet their insurance requirements. If you have questions about the best insurance coverage for your business, give us a call today.
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