Cargo theft remains one of the most significant causes of disruption in the supply chain and claims cost to the Club, accounting for around 10% by volume and cost of all reported claims in the last ten years.
European Shipping Week will take place in Brussels from 27 February to 2 March and there delegates will focus on the correct packing of Cargo Transport Units (CTUs) and the safety issues that result from poor work practices.
Cargo fraud and theft impacts everyone in the international supply chain. A buyer of cargo needs the same assurances as the provider of logistics services, who relies on others for contract fulfilment. These risks consistently are amongst the top five incidents seen by the TT Club that collectively account for about 2/3 of claims through the supply chain.
The use of flexitanks for transporting bulk liquid cargo has grown rapidly over the last decade, and this has been projected to continue with perhaps 15% per annum, reaching 1 million shipments in 2018. Products carried include wine and other foodstuffs, traditionally supplemented by latex and dispersions. The latter, together with newer products such as base oils, edible oils and chemicals, can cause problems if a failure occurs in the supply chain and regulators are concerned.
An increase in both the sophistication and frequency of cargo thefts in 2013 has been highlighted in statistics released by TAPA (Transported Asset Protection Association). Interestingly - and in line with general expectation - the average value of reported cargo thefts continues to rise globally, notably in excess of US$300,000 in the EMEA region. This would suggest that the trend of highly targeted efforts by organised criminals continues, systematically identifying higher value cargoes. Unsurprisingly, the results in 2014 continue on the upward trend.
