Marsh Appoints Herman Brito as New Leader for Marine, Cargo and Logistics

In a significant shift within the marine, cargo, and logistics sector of the insurance industry, Marsh has appointed Herman Brito as the new practice leader for the US and Canada effective October 1. Brito, who has been with Marsh since 2012, steps into this pivotal role following the long tenure of Janice Kowell, who has led the practice since November 2020. Kowell's leadership was marked by her deep expertise and significant contributions to the field, including her recent focus on emerging legal complexities and tariff implications affecting the maritime landscape. With Brito now at the helm, the practice aims to navigate these intricacies while continuing to provide high-level advisory services to clients in an ever-evolving market.

Understanding the Leadership Transition at Marsh

Brito's promotion comes at a time when the marine and logistics sectors are undergoing substantial transformations. As the new leader, he will report directly to Michael Pellegrini, head of specialty for the US and Canada at Marsh Risk. Having previously managed the Canada and US East Zone segment, Brito is well-positioned to bring valuable insights and continuity to the practice. His extensive knowledge of both the US and Canadian markets will be crucial as clients face increasingly complex challenges.

The Impact of Recent Legal Developments

One of the critical issues currently affecting the marine, cargo, and logistics practice is the Supreme Court's ruling in Montgomery v. Caribe Transport II, LLC, decided in May 2026. This landmark decision effectively removed the Federal Aviation Administration Authorization Act (FAAAAA) preemption defense that freight brokers had used to shield themselves from liability in cases involving negligent carrier selection. The ramifications of this ruling are expected to be profound, as it alters the liability landscape for freight brokers and the carriers they engage.

Shifts in Liability and Risk Management

The ruling requires freight brokers to take a more active role in vetting carriers, emphasizing the need for thorough documentation and a robust logistics liability program. This change has shifted advisory conversations from the background to the forefront, as clients now need to reevaluate their risk management strategies. In fact, Kowell previously hosted a webinar specifically addressing these changes for industry stakeholders, highlighting the importance of adapting to this new legal environment. For logistics risk managers, this development is one of the most significant in recent years, prompting a reevaluation of existing practices.

Tariff Uncertainties and Market Dynamics

Alongside legal challenges, the US-Canada tariff environment poses additional hurdles for marine and logistics operators. With the imposition of 50% tariffs on Canadian goods and retaliatory tariffs enacted earlier this month, the market is in a state of flux. These developments have raised concerns about their potential impact on vessel usage, cargo volumes, and overall supply chain dynamics.

Navigating Tariff Implications

Marsh's own client commentary indicated that tariff uncertainty is a top concern for US maritime risk managers. The shifting landscape not only affects cargo volumes but also complicates supply chain routing decisions and increases counterparty credit risk. As a result, the logistics practice must engage proactively with clients to adapt their strategies in light of these tariffs. Brito's previous experience managing client relationships in both the US and Canadian markets will be instrumental as he guides stakeholders through these turbulent waters.

The Role of Technology and Analytics in Logistics

In response to these evolving challenges, Marsh has been enhancing its analytics infrastructure to support clients in navigating complex logistics scenarios. Notably, the firm has partnered with Convex, Blenheim, and Altana to develop a $50 million data-driven trade disruption solution. This initiative is a prime example of industry collaboration aimed at addressing supply chain challenges through technological innovation.

Leveraging Data for Better Decision-Making

The Marsh Sentrisk platform emerges as a key tool, providing clients with early signals about trade disruption risks. By integrating cargo and logistics advisory with broader supply chain intelligence, Marsh aims to empower clients with actionable insights that can inform their decision-making processes. As Brito takes the reins, his focus on enhancing these technological capabilities will be crucial in equipping clients to face the multifaceted challenges of the marine and logistics sectors.

What Lies Ahead for the Marine and Logistics Sector

Brito's appointment comes at a time when the marine, cargo, and logistics landscape is more complex than ever. With a team of over 160 dedicated specialists across the US and Canada, the practice is well-equipped to address the emerging challenges posed by a changing liability landscape and tariff disputes. The evolving nature of marine cargo rates, coupled with the need for sophisticated risk management strategies, necessitates a proactive approach to client advisory services.

Continuity and Growth in Client Relationships

One of the advantages of Brito's promotion is the continuity in market access and client relationships. His previous role involved direct responsibility for the same book of business he will now lead nationally, ensuring a seamless transition for clients. This continuity is particularly important as the practice aims to navigate the complexities of advising American shippers, freight brokers, and logistics operators in this new environment.

Key Takeaways

• Leadership Change: Herman Brito succeeds Janice Kowell as the practice leader for marine, cargo, and logistics at Marsh.
• Legal Shifts: The Supreme Court ruling in Montgomery v. Caribe Transport II, LLC alters the liability landscape for freight brokers.
• Tariff Implications: Ongoing US-Canada tariff disputes are impacting cargo volumes and supply chain decisions.
• Technological Innovations: Marsh's partnerships for data-driven solutions enhance client advisory capabilities.
• Continuity Advantage: Brito's prior experience ensures a smooth transition and maintains client relationships.

Frequently Asked Questions

What does Herman Brito's appointment mean for Marsh clients?

Herman Brito's appointment signals a commitment to addressing the complex challenges facing the marine, cargo, and logistics sectors. With his extensive experience and familiarity with the US and Canadian markets, clients can expect enhanced advisory services tailored to their evolving needs, particularly in light of recent legal and tariff developments.

How will the Supreme Court ruling affect freight brokers?

The Supreme Court's ruling in Montgomery v. Caribe Transport II, LLC removes the FAAAA preemption defense, which means freight brokers must now adopt more rigorous carrier vetting practices. This increased scrutiny will likely lead to a more proactive approach in risk management and liability considerations, as brokers must now ensure they are selecting carriers responsibly.

What role does technology play in the logistics sector?

Technology, particularly data analytics, plays a vital role in today's logistics sector. Platforms like Marsh's Sentrisk provide clients with critical insights into trade disruption risks, enabling better decision-making. The integration of technology into logistics advisory services is essential for navigating the complexities of the current market and enhancing overall risk management strategies.

What challenges do US maritime risk managers currently face?

US maritime risk managers are contending with a host of challenges, including legal uncertainties stemming from recent court rulings and the implications of ongoing tariff disputes with Canada. These factors are influencing cargo volumes, vessel usage, and supply chain dynamics, necessitating a proactive and informed approach to risk management in the marine industry.