Supply chain congestion increases threat of cargo theft, according to new report

According to the joint report by transport and logistics insurer, TT Club and global provider of supply chain intelligence, BSI, in 2021 there was a shift in emphasis of global cargo theft trends from risk of in-transit, vehicle-based attacks to losses while cargo is at-rest, and storage locations are critical at-risk areas.  Widespread congestion at ports and inland facilities lead to increased opportunity for thieves during the period

In the reporting period, input from the Transported Asset Protection Association’s (TAPA) Europe, Middle East & Africa (EMEA) region has also helped to significantly increase the level of intelligence in these territories.   

“Constant vigilance is required in order to combat the growing risk divergence in theft trends,” says Mike Yarwood, Managing Director, Loss Prevention at TT Club. “Criminals are quick to adapt to prevailing conditions and have swiftly responded to the increased opportunities that supply chain congestion presents through the amount of cargo laying idle.  

“In addition, the transport industry’s growing reliance on technology and a rapidly changing market for sourcing materials and components have opened up new avenues for criminals to take advantage of companies’ increased vulnerabilities. TT, along with its partners is committed to tracking and reporting on such developments in criminals’ methods of operation in order to reduce the risk of losses wherever possible.”

Cargo theft trends 2021.

As the graphic above illustrates the products most frequently involved in global cargo thefts overall last year, included agricultural produce (12%), food and beverage (14%), construction materials (9%) and electronics (10%).

Significantly, many of the materials used to produce the latter two, such as nitrogen, iron ore, lumber, steel and semiconductors, have all experienced sharp price increases since the outbreak of the global pandemic due to shortages with a consequent increase in the value of the manufactured products.

Tony Pelli, BSI’s Practice Director for Security and Resilience, said: “To mitigate risk there are a range of safeguards, including careful verification of trucking companies and other sub-contractors; insisting on the provision of details such as driver’s name, trailer number and appointed pick-up times and background screening of employees.

“Vigilance is paramount, and we hope our reporting and advice will help supply chain partners to maintain and increase their diligent efforts to combat crime.” 

Thorsten Neumann, President & CEO, of TAPA EMEA, commented: “What we are seeing in EMEA is a heightened level of risk to virtually all types of goods moving in supply chains across our region. This comes from increasingly active and sophisticated organized crime groups which often regard supply chains as an easy and lucrative target. 

“Sadly, too many companies wait to seek solutions until they become a victim of a cargo crime but, by then, they will have suffered a significant financial and reputational loss. 

“The way forward is to recognize the risks which exist and to learn about the industry standards, training and intelligence solutions which are available today and which are already key to the supply chain resilience of leading manufacturers and freight transport and logistic providers. All is not lost, but it is a time for action to manage these risks and prevent rising product losses.” 

Photo credit: iStock/ ronnachaipark

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