Damage to goods

Damaged merchandise
Risk of damage to stock

Nature

The retailer, wholesaler, manufacturer and customer lose from having merchandise damaged. Goods can be damaged by vandals or disgruntled employees, by accidents or by acts of nature.

Background

The global significance of damage to goods emerged with the expansion of international trade in the 19th century, as losses during transport and storage became increasingly apparent. Early insurance records and shipping logs documented the economic impact, prompting regulatory and technological responses. Over time, industrialization, containerization, and complex supply chains heightened awareness of vulnerabilities, leading to international conventions and standards aimed at minimizing losses and ensuring accountability across borders.

Incidence

Damage to goods is a pervasive issue affecting global supply chains, retail, and consumers, with billions of dollars lost annually due to mishandling, inadequate packaging, and transportation accidents. The problem spans multiple sectors, including agriculture, electronics, and pharmaceuticals, leading to significant economic losses, increased waste, and disrupted trade. According to the World Shipping Council, container losses at sea alone resulted in over 1,000 damaged containers in 2022, highlighting the scale of the problem.
In March 2021, the grounding of the Ever Given container ship in the Suez Canal resulted in extensive damage to goods aboard, with perishable and time-sensitive cargoes particularly affected.

Claim

Chipped dishes never break.

Counter-claim

Frankly, the issue of damage to goods is vastly overblown and hardly deserves our concern. In today’s world of mass production and rapid delivery, minor losses are inevitable and easily absorbed by businesses. Consumers are rarely left uncompensated, and insurance covers most significant incidents. Compared to pressing global challenges like climate change or poverty, obsessing over damaged goods is trivial and distracts from truly important problems demanding our attention.