Question

You are CEO of a firm that regularly imports consumer electronic devices from plants in Thailand, Malaysia, Indonesia, and the Philippines. The devices are shipped to you by ocean carrier through the South China Sea and then are sold in the United States and exported to ports in Europe and the Middle East. What kind of information do you need to assess the potential risk to your cargo passing through the dangerous waters of the South China Sea?

Answer 1

in order to assess the risk of your cargo passing through the South China Sea, you would mainly need to assess the risk of piracy, which is definitively present in that area, and you should also assess other risks more related to geographic conditions, like the possibility of cargo damange or even shipwreck during the moonson season.