Average Cargo Theft Costs Around $77K, Says TT Club Survey

This Monday Aug. 28, 2017 image provided by the Port of Virginia shows the CMA CGM Theodore Roosevelt being unloaded at the Virginia International Gateway in Norfolk, Va. The arrival of the ship breaks the record for largest container ship ever to visit the Port of Virginia and the East Coast. (Keith Lanpher/Port of Virginia via AP)

TT Club and BSI have issued the second edition of their report on global cargo theft, the first to cover a full year.  Highlighted findings include: theft from road vehicles once more accounts for the highest proportion at 84%; Slash and Grab the largest type of cargo theft at 26% globally but with significant regional variations; the combination of food, beverage, alcohol and tobacco making up the most common commodity group at 34% and South America topping the regional analysis of median value for each theft at $77,000.

Leading international transport and logistics insurer, TT Club and global provider of supply chain intelligence, BSI produced their first regular Semi-Annual Global Cargo Theft Intelligence and Advisory Report late last year but this second edition is the first to cover a complete twelve-month (2018) period.

TT Club’s Mike Yarwood, explains the rationale behind the initiative, “Our report brings together threat and intelligence data from BSI’s supply chain security country risk intelligence tool, SCREEN and TT Club’s insurance risk management and loss prevention insights. It demonstrates the shared goal we possess of educating supply chain professionals in the threat of cargo theft across the globe. We aim to engage in a proactive approach in preventing cargo crime and also minimising the financial loss resulting from cargo crime.”

The report, which is available as a free download https://www.ttclub.com/loss-prevention/publications/tt-club-bsi-cargo-theft-report-2018/ analyses cargo theft by modality, theft type (modus operandi), commodities targeted and the value of losses across the major regions of the world.  

While the research found a consistency across the regions in terms of the most common modality involved (road transport) and in the commodities targeted, there was some variation in the median value of the cargo affected.  This ranged from just under $19,000 in Asia, to around $60,000 in both Europe and North America to a high of $77,000 in South America.

The methods used in the majority of cases, however varied significantly across the regions.  The global aggregation resulted in Slash and Grab at 26% topping the list, with Theft from Vehicle (19%) and Hijacking (17%) making up second and third spot.  In North and South America Hijacking was the most common method at 37% and 52% respectively.  In Asia methodology was quite different with Theft from a Facility being the most common, at 43% compared with just 19% from Hijacking.

The report includes several pieces of loss prevention advice to counter the identified threats. The risk mitigation advisory sections have been co-authored by BSI’s Advisory Supply Chain Security team and the TT Club’s claims and loss prevention team.

Yarwood goes on to say “In particular we would wish to emphasise The Insider Threat.  As security measures become more sophisticated and widespread in practice, criminal organisations are increasingly recruiting employees of targeted companies to gain data, cargo information, delivery routes and destinations and access to IT systems. Due diligence in recruiting and managing staff is paramount. In general full or part-time salaried staff are less of a security risk than sub-contractors.”

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