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Transport and logistics: Reducing non-payment risk through trade credit insurance

Trade credit insurance helps transport and logistics companies reduce non-payment risk, protect liquidity and support growth amid trading uncertainty.

Transport and logistics companies are operating in a demanding environment where rising costs, uncertain demand, and complex supply chains are testing financial resilience. At the same time, businesses are increasingly being asked to offer more flexible commercial terms to win and retain business.

As our Trade Credit Risk Report 2026 illustrates, these pressures are reshaping how businesses balance the need to grow with the need to protect liquidity, making day-to-day decisions across the sector more difficult. As firms are often required to extend more generous credit terms and navigate greater uncertainty across their trading networks, trade credit insurance has become an increasingly important part of the broader resilience toolkit.

Growth is still the goal, but risk is rising

According to the report, 84% of businesses expect growth over the next 12 months, yet 98% say the current climate has led them to extend more generous credit terms. More than half say they have already done so significantly.

For transport and logistics firms, that creates a clear tension. Longer payment terms and more flexible payment arrangements may help win or retain business, but they also increase exposure if a customer does not pay.

The challenge is not whether to offer credit. It is how to do so deliberately, with a clear view of the risk and the flexibility to respond if a partner’s circumstances change.

Supply chain disruption is a financial issue as well as an operational one

Meanwhile, the sector sits at the centre of the wider supply chain, which means disruption can quickly become a financial issue as well as an operational one.

The report found that 70% of businesses say their financial exposure linked to supply chain disruption has increased or is expected to increase, while 50% cite supplier insolvency or financial instability as their biggest supply chain risk.

That matters because a financially unstable supplier or subcontractor can trigger delayed payments, cancelled volumes, additional costs, and the need to source alternatives at short notice. Disruption can create extra handling, storage, rerouting or capacity costs, frequently before it is clear who will bear them.

Resilience therefore means looking beyond direct customers. Firms need visibility of suppliers, subcontractors, and concentration points, along with contracts, credit controls, and insurance that reflect how the network actually works.

Growth into new markets or countries adds another layer of exposure. Businesses may be dealing with unfamiliar customers, payment practices, legal environments, and currency risks, often while offering attractive terms to establish a foothold.

Digital disruption is now a financial risk

This broadening of risk is also reflected in the digital sphere. For freight forwarders and other logistics businesses, digital investment is a major part of the capital agenda. But digital dependence also brings financial exposure.

The report shows that 76% of businesses have experienced losses due to digital disruption, and the same proportion have experienced losses linked to AI-related risks.

That is because cyber incidents, system outages, or failures in digital platforms can stop bookings, tracking, invoicing, or payments. Even a short interruption can lead to missed deliveries, penalties, lost customer confidence, and recovery costs.

AI also brings risks related to errors, fraud, data, and system reliability. These can affect revenue, receivables, contractual obligations, and the ability to keep trading.

Businesses need strong controls, tested continuity plans, clear accountability, and a realistic view of the financial impact if key systems fail, along with a plan to mitigate and transfer that risk.

Late payments continue to pressure cash flow

Lastly, cash flow remains one of the biggest pressure points for the sector.

The report found that 85% of businesses have dealt with more late payments over the past 12 months. In transport and logistics, that creates a particular challenge because costs are often paid up front or in advance of customer payment.

A business may already have covered drivers, fuel, maintenance, leases, and subcontractors before it receives payment for a job. If payment delays become widespread, working capital headroom can disappear quickly.

A late payment is more than an administrative inconvenience. It can affect a company’s ability to take on the next job, invest in vehicles or technology, or meet obligations to suppliers and employees.

Trade credit insurance can support resilience and growth

That is why trade credit insurance is seen as more than a backstop. It can also be a tool for resilience and expansion. The report shows that 82% of businesses currently have trade credit insurance, and those with cover are far more likely to say they feel highly resilient to financial exposure risk than those without it — 49% compared with 18%.

Trade credit insurance can help businesses trade with greater confidence while protecting eligible receivables. In practice, it can provide a valuable safeguard if a customer becomes insolvent or simply fails to pay because of a covered event, helping to make cash flow more predictable and softening the impact of a major default.

It can also give businesses greater insight into customer creditworthiness and credit limits, supporting more informed decisions about new customers and more competitive terms.

The wider message is straightforward. Resilience is not about eliminating risk altogether. It is about understanding it early, managing it, and putting protection in place before conditions shift.

Why now is the right time to review trade credit insurance

Transport and logistics will continue to face uncertainty, from supply chain disruption and late payments due to digital risk and the ever-changing commercial environment.

The strongest businesses treat growth and balance sheet protection as part of the same strategy. With market conditions evolving, now is an opportune time to review trade credit insurance — and Marsh can help.

Please contact your Marsh advisor for more information on protecting your business against non-payment risk.

Report

Transport and logistics: Reducing non-payment risk through trade credit insurance

Growth is still the goal, but risk is rising

Supply chain disruption is a financial issue as well as an operational one

Digital disruption is now a financial risk

Late payments continue to pressure cash flow

Trade credit insurance can support resilience and growth

Why now is the right time to review trade credit insurance

Our people

James Lean

Jamie Coskry

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