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 responses and the development of standardized packaging and handling protocols. Over time, technological advances and globalization heightened awareness of the issue, leading to international conventions and collaborative efforts to mitigate losses across complex supply chains.