The rapid increase in cargo theft is causing transport insurers to rethink their coverage policies, especially for high-value consignments. This trend is raising alarm bells for supply chain leaders.
Cargo Theft on the Rise
Cargo theft is escalating at an alarming rate. Previously, only a few cases were reported per month, but now, almost daily incidents of truckload theft are being reported. This surge in theft is causing transport insurers to reconsider their coverage policies, particularly for high-value consignments.
Jos Vilten of transport insurer MS Amlin, in a recent interview with Dutch business newspaper Het Financieele Dagblad, stated that there has been a significant increase in cargo theft since the beginning of the year. He warned that the current situation is unsustainable and insurers may have to either increase premiums, raise the excess, or start excluding coverage.
Online Freight Marketplaces: A Double-Edged Sword
Vilten attributes the rise in cargo theft to the popularity of online freight marketplaces like Germany’s Timocom and Belgium’s Teleroute. While these platforms are designed to connect shippers with carriers, they unfortunately also attract criminals.
Criminals are able to secure transport contracts by slightly undercutting the market price. Once the cargo is loaded onto the truck, it departs with fake license plates, often not reaching the intended destination. High-value items such as solar panels and mobile phones are particularly targeted by these criminals.
The increase in border controls, resulting in more downtime and unscheduled overnight stays, is also making the transport industry more susceptible to theft. This trend is a growing concern for supply chain directors, who must now navigate this new risk landscape.
The surge in cargo theft poses a significant challenge for supply chain leaders and transport insurers alike. With the rise of online freight marketplaces and sophisticated criminal tactics, mitigating these risks requires a strategic approach. Supply chain directors must work closely with insurers to ensure proper coverage and security protocols are in place to protect high-value consignments. Vigilance, collaboration, and proactive risk management are key in combating this growing threat to the supply chain industry.
