In uncertain times, businesses turn to “just-in-case” logistics
As trade tensions affect the availability of parts and disrupt supply chains, importers and exporters increasingly need a backup plan.

For decades, importers and exporters have leaned into what’s called “just-in-time” logistics — only order what you need only when you need it, and the robust global trade network will get it to you fast.
Now, the ongoing trade war is prompting some businesses to shift to a new model: ‘”just-in-case” logistics.
Just-in-case logistics is about having a backup plan, according to international trade lawyer Schuyler “Rocky” Reidel, founder of Reidel Law Firm.
“We buy what we need, we store it, and we use it when we need to, and we don’t rely on a supply chain to get it to us immediately when we need it,” he said.
That means stockpiling extra products or parts, so you’re covered in the event of — oh, I dunno — a trade war.
Another component of “just-in-case” logistics? “We’ve seen a big increase in a product that’s called ‘trade credit insurance,’ and that’s essentially protection for customers in the event that a customer defaults,” said David Kinzel, a senior vice president focusing on the political risk practice at the global insurance and risk advisory firm Marsh.
Kinzel said his team has seen a significant increase in the interest in these types of insurance products. Now, with the trade war, these conversations are taking up about two-thirds of his day.
“We’ve already seen, I’d say, an increase in business of at least 20% so far this year,” he said.
And he expects that to grow as the global trade environment gets less and less predictable.
Clarification: This story has been updated to clarify the nature of Marsh’s insurance products business.