Unpacking the Factors Behind Global Cargo Crime

The Annual Cargo Theft Report 2023, jointly published by TT Club and BSI SCREEN Intelligence, sheds light on how high inflation is impacting the frequency and patterns of cargo crime across the globe. This year's report emphasizes a significant rise in the theft of food and beverages, with alcohol included, now making up 24% of all cargo thefts worldwide, up from 16% in the previous year. A key insight from the report indicates that the majority of cargo theft incidents occur during road transport, making up 71% of cases, while theft from facilities has seen a decline from 30% to 23%.

The report also identifies the countries most affected by cargo theft, including Mexico, the USA, South Africa, Germany, and Italy. While electronics represent 9% of theft incidents, the financial impact remains substantial due to the high value of these goods. Regional disparities in the methods of cargo theft were also highlighted in the report, such as the use of fake police stops in South Africa, referred to as "blue light crime," and instances of "insider activity" contributing to thefts in Asian countries.

Tony Pelli, BSI's practice director, stressed the far-reaching consequences of cargo theft, stating, "Cargo theft not only results in billions of dollars lost annually but also disrupts critical supply chains, impacting everything from pharmaceuticals to semiconductors." He underscores the importance of accurate intelligence in combatting this issue and pinpointing areas most vulnerable to theft. Mike Yarwood, TT's managing director for loss prevention, outlined the company's strategy in addressing these evolving crime patterns.

By monitoring fraudulent tactics and geographical risks, TT aims to assist businesses in fortifying their security measures. Yarwood also highlighted the report's role in offering practical recommendations and actionable intelligence for risk mitigation. For instance, the report addresses the increased theft of olive oil in Southern Europe due to poor harvests and rising oil prices, as well as various fraud techniques prevalent in Europe and the USA.

The collaboration between TT Club and BSI not only documents instances of cargo theft but also provides guidance on enhancing security protocols within supply chain organizations to combat this ever-present threat.