Mitigating Risks in International Shipping: Strategies from Arihant International Courier Services

May 6, 2024

What strategies does AICS suggest for mitigating risks in international shipping? How does AICS deal with problems like customs laws in its plan to lower the risk of international shipping?

For the growth of the world’s economy, international exchange is the key to connecting businesses and growing international business. In today’s world for growing businesses and new opportunities in the market, international exchange is necessary. Though it has become very easy to supply goods from one country to another, there is a very fair share of risks included in this process. Due to the time delays and uncertainties, unexpected costs can occur. Companies have to be very careful regarding these risks to reduce costs and provide a reliable service to their customers. By taking careful measures these companies can avoid risk and damage. Companies can learn about new risks and how to deal with them on their own or with the help of outside parties, like insurance firms if they are managed well. Not all types of risk can lead to debt, some cause less loss while others cause a huge bad debt. Certain payment risks might result in unanticipated high amounts of bad debt, which can have disastrous effects on a company. In other cases, some dangers only cause immediate problems, including irregular payment delays. 


Major risks that international courier service companies need to strategise for:

  • Career Dependability: Delays or accidents by courier items can disrupt the supply chain. Working with reputable international courier service providers with a history of success is important for ensuring a seamless supply chain flow.

  • Natural Calamities: Natural disasters, such as earthquakes, floods, and cyclones, can easily disrupt courier shipments. It is possible to escape natural disasters by carefully planning routes and avoiding those that have been forecasted. Creating possible plans that include alternative routes or means of transportation can help guarantee that such disasters cause as little loss as possible.

  • Damaged Items: Improper packaging can damage the goods during shipping, which can disappoint the customer with the courier company. Minimising such risks, correct and strong packaging is required to prevent damage and loss. 

  • Fluctuation In Fuel Prices: Changes in fuel prices also affect international courier service companies. It has a major impact on the logistics industry which causes obvious changes in the rates of shipping companies. Managing an efficient workforce through regular maintenance checks and implementing fuel-saving technologies can help keep costs under control.

  • Exchange Rates: The ratio of profit margin of the international courier service companies changes due to the currency fluctuation of the countries. To prevent these risks, a strong foreign exchange risk management strategy should be implemented to reduce unwanted losses. 

  • Violating International Courier Standards: This can lead to penalties or even seizing the items. International courier service companies should be constantly updated about the changes in the regulations and act accordingly. Violating the procedures can disappoint the consumer as well as affect the reputation of the courier company. 


Risks that surprise business executives can have a particularly negative impact on the productivity and profitability of these international courier service companies. Businesses can prevent this by using a variety of methods and strategies to control the risks related to exporting goods, such as credit insurance and terms of payment for clients who have a greater risk. Find out about the dangers which are possible while exporting and how to mitigate them.

Risk Management Tips By AICS

Risk management is all about diminishing or preventing the risk that comes the way of the couriers for international courier service companies. There is never a risk-free business, particularly when collaborating with clients and partners abroad. Rather, risk management entails taking action to make sure that an organisation is aware of the risks it challenges, its scope, and the extent to which those risks may be mitigated. 


As a leading international courier service company we recommend the following steps to be taken care for risk management to benefit the businesses and reduce damage and losses.


  1. Evaluate and identify all the possible risks.
  2. Pick each risk based on how likely it is to happen and how serious it could be. Macroeconomic risks like inflation; political risks like civil upheaval or economic sanctions in a particular nation or region; and business-specific risks like the possibility of declining market demand and shifts in the creditworthiness of customers are a few examples of these risks.
  3. Shortlist and evaluate different strategies for varied types of export, including payment conditions, targeting enterprises and networks in selected cities, and ensuring and preventing risks.
  4. As situations and circumstances change over time, keep an eye on risks and modify risk management and mitigation strategies in light of new knowledge.


A solid courier risk management strategy allows international courier service companies to do business with a large audience. When a business has effective risk management, it can comfortably extend financing and offer attractive terms of payment to strengthen important business ties and spur growth. When needed, it can also gradually invest in other customer relationships.


Making sure of reliable risk management strategies for international courier service companies is necessary to deliver the right service to their customers that meets their expectations. To reduce the company’s losses and make good profit margins as a business a preplanned risk management strategy is crucial to be a game changer and make a mark in the industry of international couriers. Arihant International Courier Services (AICS) makes sure that the items reach overseas safely and at an ideal time to avoid inconvenience. To avoid disappointments within the consumers and give them satisfactory services is our prime goal. As a leading international courier service company, Arihant International Courier Services (AICS) suggests that if the export company, for instance, realized that should an otherwise excellent customer request payment terms for a larger-than-usual order, it would not be able to cover the loss. Rather than lose out on the growth this deal would bring about, the firm started adopting a more progressive risk management strategy for its export business, which included buying credit insurance for its accounts receivable. With that strategy in place, the company is now able to approve credit limits more quickly and provide financing on open terms where its competitors cannot.


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