the shipping incident in Maryland will impact your business...

Across the country in closed conference rooms insurance companies, executive officers, attorneys, accountants, et al are discussing the financial implications of this shipping companies vessel destroying a bridge in Maryland. As this article is being written, lawyers representing all stakeholders are staking out respective litigation positions to protect the financial interests of their clients. Why should this concern you?

Ultimately, this year or next, settlements will be reached with most checks being written by various insurance carriers. These same insurance carriers will have little choice but to pass on the cost of these settlements to existing and new policy holders. Now comes the fun part; these same insurance companies will broaden and/or expand their actuarial risk tables to account for this tragedy. This means that the insurance cost for all shipping companies will increase as fixed and variable rate policies come up for renewal. Restaurants and Retail companies, both online and brick and mortar, will see higher than normal, or historical CPI cost adjustments added to the case price of the end user. 

Having this knowledge today, it is imperative that you meet with your Supply Chain Officer / Logistics Officer and schedule several meetings to get ahead of this pending price increase. There are several strategies to employ and consider and I am happy to assist. Please contact Tom Harper Consulting at tomharperconsulting.com to better understand the strategic approach necessary to protect your margins and cash flow position.