GlossaryEN1 min readUpdated: Jun 13, 2026

Damage budget

A damage budget emerges during the financial planning cycle of logistics providers and freight forwarders as they establish annual or quarterly reserves.

Last updated: 13 June 2026Published: 27 January 2026

Source: https://www.dict.cc/?s=Schadenbudget

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A damage budget emerges during the financial planning cycle of logistics providers and freight forwarders as they establish annual or quarterly reserves. It is a provisioned financial buffer to absorb predictable losses during storage, transport, and handling—such as breakage, moisture damage, operational errors, or cargo loss—without compromising operational profitability. The amount is typically calibrated based on historical damage ratios, insurance premiums, and customer service-level agreements.

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Damage budget

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