Motor Truck Cargo: Protection against rising cargo theft
You can’t always protect cargo from going missing, or being stolen, but you can protect your liability against the costs that will incur should such an incident happen. As soon as cargo has been signed over to the carrier, the carrier becomes responsible for all the contents in their possession. Whilst many logistics companies have mitigations in place, such as rules around locking vehicles and ensuring their drivers don’t leave vehicles unattended for long periods of time, thieves are becoming increasingly daring, even targeting shipments that are stuck in traffic, while the driver is in the vehicle.
Most recently following the pandemic, we have seen huge disruptions to the supply chain, for many differing factors. This caused a huge backlog across logistics infrastructures, and became a rife opportunity for cargo thieves to target idle shipments in and outside of the ports. Almost a quarter of cargo (25% in 2021 and 24% in 2020) is stolen from facilities that most of the time is covered by overall business insurance, but the majority of goods (65%) are stolen in transit, which is why Motor Truck Cargo insurance is fundamental for many logistics organisations.
According to TT Club, insider threats are becoming a huge concern for supply chains in 2022. Whilst we can plan and use as much technology and training as we wish to mitigate the risks of cargo being stolen, sometimes its those we least expect, and have insider knowledge that enables them to carry out the robbery successfully. Additionally, criminals’ tactics are evolving rapidly, making shipping companies vulnerable to new threats all the time.
In 2021, the hit of cargo theft in the US set companies back approximately $217,923 on average, a five year record high. In 2021 alone, there were 65 reported cargo thefts per month, ranking the US a high treat level to cargo theft. In the current economy, these figures could have a huge impact on a business and their day-to-day operations, not just financially, but also regarding relationships with suppliers and partners.
With concerns evolving from our everchanging economy, the cost-of-living crises and issues in the supply chain due to the conflicts between Ukraine and Russia, as well as the global recovery of COVID-19, there are more incentives now than ever before for cargo theft to take place, which is why it is so important to not only have MTC insurance in place, but to ensure you have the right level of cover too.
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