Cargo theft is plaguing the industry, specifically in the US, where it’s seen a spike of 9% in 2023. Thieves mainly target electronics and liquor, which are easily removed from sealed containers and sold elsewhere.
These criminals are “organized and sophisticated,” as Overhaul points out in its law enforcement data tracker. It also projects that cargo theft attacks will increase by 35% by the end of this year.
Cargo theft is not new to the industry; it’s been a point of contention for many years. It’s particularly problematic in California, where nearly half of cargo theft in America took place.
Supply Chain Brain is quoting Port of Los Angeles executive director Gene Seroka, calling it organized crime “at its finest.” Law enforcement in Southern California has seen “seals ripped, doors hit,… and products they can fence quickly.”
Legal and financial implications
Shipping and logistics companies can be liable for damages if goods are stolen. It also impacts your insurance premiums. From a brand perspective, it can potentially damage the company’s reputation.
Binary Semantics released a new report this month focusing on the impact of cargo theft on businesses. India has also noticed a significant increase in cargo theft.
Although the loss of their purchased items will directly impact customers, it can also lead to increased costs in the long run due to extra security measures that need to be taken.
Binary Semantics warns that if an incident has occurred, it triggers a range of stakeholder insurance claims, from the manufacturer to the third-party logistics provider and transportation provider. This could lead to conflict and possible delays in the overall insurance process.
Strategies to combat cargo theft
Supply chain stakeholders are recommended to take necessary steps to avoid falling prey to the syndicates’ trap by:
- Install cargo tracking equipment.
- Invest in quality locks for cargo.
- Monitor cargo to alert authorities when there is any tampering.
- Install CCTV cameras.
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About the author
Mia is a multi-award-winning journalist. She has more than 14 years of experience in mainstream media. She's covered many historic moments that happened in Africa and internationally. She has a strong focus on human interest stories, to bring her readers and viewers closer to the topics at hand.
