As per the report by TT Club and BSI, cargo theft from road vehicles accounted for 84 percent of all modalities of theft with 13 percent coming from warehouse/storage areas, 1 percent from freight trains, and 2 percent other areas. Food and beverage, where the most commonly stolen items come from, account for around 19 percent of cargo theft. It is followed by alcohol/tobacco and consumer products at 15 percent and electronics apparel, footwear, and others making up the balance.
In terms of the common location of cargo theft, South America topped the regional analysis with a whopping median value of US$77,000 per theft, followed by Europe, USA, MEA, and Asia. While the report also found that there were commonalities in the modalities involved and in the commodities targeted, there was some variation in the median value of the cargo affected.
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The chance of cargo theft happening to you is not contingent on the type of products being transported, the report suggests. Thieves target goods that not only have real intrinsic value, but also those that can be easily sold on the grey or black market. Imagine you deliver valuable goods to a consumer that is worth as much as US$ 1 million, then they disappear because your security system is easily hijacked by a thief. When this happens, you have to face double consequences: first, you will lose the client’s trust due to a serious security issue and second, you need to pay for the loss.
Owing to that reason, rechecking your security is a pivotal requirement before anything else. To make sure that your cargo is totally secure, you need to remember the following points proposed by Chubb. Here is the summary.
Be more careful in selecting transportation provider
Third-party solution is sometimes the only choice when logistics provider does not have their own shipping system. Your 3PL plays an important role in ensuring your cargo is protected from theft. When selecting 3PL, you should consider their compliance in handling security and loss prevention practices, as well as having a real-time tracking system and good track record. You can find the track record from customer’s testimonials or reports.
Mindful with your package
Your packaging should not be so instinctively guessed, hence, you should use a well-constructed packaging material. You are also recommended to avoid an obvious display of a company name, corporate, trademark, logo, and other marks that will enable someone within the supply chain to identify the contents.
To ensure insurance ability of your goods, make sure that your shipment documentation is permissible by law or regulation. It is also advisable to set practical size and monetary limits on shipments. This is a basic risk management strategy to minimise the financial and operational impact of any loss.
In the shipment by air or ocean freight, make sure the carrier you work with uses sealed and enclosed trailers, and that any valuable materials on a flatbed are shrink-wrapped. If your shipment is going to be parked for a significant amount of time, make sure your carrier has 24-hour surveillance cameras. If you are shipping used equipment, be sure to conduct a pre-trip inspection, as any damage to used equipment during a shipment is hard to prove. In addition, all the inbound and outbound trailers, as well as ocean containers, should be inspected for physical condition and security seal integrity.
Good documentation can be a good hint for thefts to steal your goods. Therefore, limit the number of employees who have access to shipment documentation as it will reduce the risk of internal theft. Your shipment documentation should also be kept confidential and should not be placed in a location where even casual passers-by can determine the contents or a particular trailer or container.
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