Political or social conflict is another cause of risk to the transportation of goods. Potential types of risk are:

• War - This could mean that goods are blocked or destroyed in distant parts of the globe.
• Strikes by dockers or hauliers can immobilise shipments for long periods. If the goods are perishable they can deteriorate
• Unhappy producers could destroy a shipment in order to protest against a decision they find unfair.

Example

A company located in Nottingham, England, sells two casts for the automobile industry which it insures Free on Board (FOB) Dover.

It hires a haulier to move the goods, worth €30,500 and weighing 20 tons. The lorry is blocked by a demonstration around Stevenage. Despite the haulier's valiant efforts the trailer is tipped over and its contents broken.

Following a survey, it is confirmed that there has been a total loss of the goods. Since the carrier is exonerated from his liability there is a financial loss for the company of €30,500.