Many newsfeeds currently are covering mass migration arising from the war in Ukraine, following the tragic pattern from other conflict zones over years and decades. The freight supply chain, however, continues to be exploited by layers of criminal barons facilitating the unfortunate 'underbelly' of economic migration.
TT Club and BSI Supply Chain Services & Solutions have teamed up again to produce a full year analysis of cargo theft, together with some further loss prevention commentary to assist those considering how to combat this on-going threat.
TT Club and BSI have issued the second edition of their report on global cargo theft, the first to cover a full year. Highlighted findings include: theft from road vehicles once more accounts for the highest proportion at 84%; Slash and Grab the largest type of cargo theft at 26% globally but with significant regional variations; the combination of food, beverage, alcohol and tobacco making up the most common commodity group at 34% and South America topping the regional analysis of median value for each theft at $77,000.
Whilst technological advances undoubtedly provide greater operational efficiencies and opportunities for carriers and operators to mitigate their exposure to theft and fraud, unfortunately they equally benefit organised criminal organisations. As invasive cyber-technology becomes more widely available, the TT Club suggests that what has been observed in recent months could be a significant emerging risk to legitimate trade, exposing the operators in the supply chain to economic and commercial damage.
The European Commission estimated that the value of cargo stolen in transit was around EUR8.2 billion per annum. The TT Club has seen an increase in the role fraud is playing in such losses. There is a marked trend in organised crime posing as legitimate operators or using internet cargo clearing sites to facilitate the theft of high value cargo. Perhaps most worrying is that this is global.
Despite publicity about the amendment to SOLAS (International Convention for the Safety of Life at Sea) requiring that all packed containers have verified gross mass (VGM) stretching back at least five years, many parts of the industry have waited to the eleventh hour before putting individual and collaborative minds to the issue of implementation. With less than five months to mandatory global enforcement on 1 July 2016, it is critical for all stakeholders to engage now.
