May 18, 2023 | Cargo Insurance
New BSI Global Intelligence Report Highlights Increase in Facility Theft, Drop in Truck Hijackings
What were the top commodities stolen in 2022? What types of cargo thefts occurred most often? The answers to these questions and much more are now available in the 2002 Global Cargo Theft Report published in partnership with BSI Supply Chain Services and Solutions. Logistics service providers and cargo owners can leverage this information to understand their supply chain risks better and address potential vulnerability areas.
In this report, Roanoke and BSI collectively assessed cargo crime in 2022 compared to previous years. In addition, we identified essential mitigation advice that companies could implement to prepare for the current trends and emerging risks of 2023. Download the complete guide here, or read the summary below for more information.
GLOBAL CARGO THEFT TRENDS
As we head into the second half of 2023, changes in consumer demand, the global economy, and criminal behavior will impact the global supply chain. That said, there are a few key trends outlined in the report that are worth bringing to the forefront:
- Facility Thefts are Increasing: A decrease in global demand for goods decreases the volume of goods being transported. As a result, criminals are targeting high-valued goods more than essential goods (like food and beverage). Because fewer cargo trucks transport goods, hijackings have decreased, but facility thefts have increased.
- Inflation Contributes to Increase in Basic Goods Thefts: Food and beverage were the top products stolen in 2020 and 2021. However, from 2021 to 2022, it increased from 14 percent of recorded incidents to 16 percent globally. This increase is partly due to inflation reaching its highest level in decades for many advanced economies.
- Rise in Insider Participation Thefts: Approximately 21 percent of all theft incidents recorded globally involved some form of insider participation, excluding incidents where the involvement was unknown. These incidents vary by region, and Brazil and Argentina are among the top countries of concern for insider participation.
TIPS TO MITIGATE RISKS IN 2023
The evolution of cargo theft methods is ongoing. Understanding the different schemes cargo thieves employ can help logistics service providers and their shipper clients develop mitigation tools to avoid the pitfalls of theft. The following are examples of specific theft types and tips for avoiding them. A modest investment of time and money in pro-active measures to reduce these risks can save thousands or more.
Mitigation to Counter Unattended Cargo Threats:
Cargo at rest is cargo at risk. Cargo thieves stalk parking lots, truck stops, and drop-off lots for opportunities to steal cargo they can later sell.
- Make sure that high-valued cargo is not left unattended
- Tractor/trailers should be equipped with high-security door locks such as cuff locks, which prevent trailers from being detached from the tractor.
- Trailers should be backed into lots against a building or walls to limit access to hitches.
Mitigation to Counter Fictitious Pickup
Today’s cargo thieves use sophisticated tactics and methods to execute these costly crimes. First, they use stolen identities from legitimate truckers to commit the theft and then employ elaborate double brokering schemes to deceive and thwart efforts by law enforcement to catch them.
- Avoid the Friday afternoon rush. Thieves know that on this day, the focus is on meeting shipping deadlines and not as much on security.
- Shippers, warehouses, and freight forwarders must employ solid vetting processes and implement stringent procedures for their employees, i.e., vet all carriers or brokers and collect verifiable identification.
- To verify legitimacy, call the trucking company while the trucker is still at the loading point.
- Consider adding GPS tracking devices on all loads.
- Conduct periodic security reviews and process audits. Follow these best practices to identify any gaps in security or processes.
THE VALUE OF CARGO INSURANCE
The evolving risks serve as reminders of the importance of investing in Cargo insurance. Roanoke Insurance Group, an experienced specialist who understands the intricacies of cargo insurance, can assist you in obtaining the right coverage and protecting the financial interest of your clients. Please contact your Roanoke insurance professional at 1.800.ROANOKE (866-828-1959) for more information.
This information is presented as a specialty service offerings through a strategic partnership with BSI Supply Chain Services and Solutions. BSI is a leading global provider of supply chain intelligence, auditing services, audit compliance, risk management software solutions, and loss prevention advisory services. Through this partnership, our clients will have preferred access to risk intelligence and best practice insights to improve overall supply chain security and reduce theft and cargo loss risk.
Disclaimer: This information is provided as a public service and for discussion of the subject in general. It is not to be construed as legal advice. Readers are urged to seek professional guidance from appropriate parties on all matters mentioned herein.