Global logistics insurance market expands amid supply chain volatility

News desk: Logistics insurance plays a critical role in safeguarding goods across the global supply chain, offering protection against risks such as loss, damage, theft and delays during transit, handling and storage. As international trade continues to expand and supply chains become more complex, this form of coverage has become increasingly essential for maintaining business continuity.

Industry estimates indicate that the global logistics insurance market was valued at approximately $71.8 billion in 2024 and is projected to reach around $84 billion by 2030, reflecting steady growth. Related segments, particularly maritime cargo insurance, are expected to expand at a faster pace, supported by rising shipping volumes and evolving risk exposures across global trade routes.

The sector’s growth is largely driven by the continued rise of global trade and e-commerce, alongside increased awareness of supply chain vulnerabilities following recent global disruptions. Logistics insurance generally encompasses a range of protections, including coverage for goods in transit across sea, air, road and rail, as well as liability protection for carriers and freight forwarders. It also extends to warehouse storage through stock throughput policies and addresses professional risks such as errors and omissions in logistics services.

These policies are designed to mitigate losses arising from accidents, natural disasters, fires, collisions, handling errors and criminal activities such as theft. In response to a rapidly changing risk landscape, insurers are increasingly incorporating elements such as cyber risk and trade credit coverage to address broader disruptions linked to geopolitical tensions, port congestion and climate-related events.

Shifts in global trade patterns are also influencing risk exposure. Near-shoring trends, particularly in North America, are redirecting risk away from long-haul ocean freight toward inland transportation networks such as trucking and rail. At the same time, a rise in cargo theft incidents has contributed to higher premiums and more stringent underwriting standards across the sector.

Supply chains continue to face pressure from tariffs, labor shortages and extreme weather events, all of which add to operational uncertainty. In this environment, logistics insurance remains a key risk management tool, enabling businesses to navigate disruptions and maintain resilience in an increasingly interconnected global economy.