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.
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.
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.
How much does cargo crime really cost? Globally, the value of stolen cargoes runs into hundreds of billions of dollars each year. The FBI estimates this figure for the US alone at over USD 18 billion each year. Others think that this is a gross underestimate and that cost could be as much as 45 billion dollars. Whatever the figure, it is a truly staggering sum.
