The challenge of cargo theft

At the IUMI conference in September, cargo crime was high on the agenda. In the just-released edition of IUMI Political Forum, Hendrike Kühl, Policy Director, said that cargo theft was “a global issue which must be tackled across all continents”.

Kühl said that the issue had heightened in recent years due to criminals becoming more organized and international in their reach, deploying more sophisticated methods.

Mark Gruentjes, board member at the Transported Asset Protection Association (TAPA) said in his remarks at IUMI conference that the true cost of losses due to cargo theft far exceeded the financial cost of the goods themselves. Disrupted supply chains, reputational damage, and higher insurance premiums were just some of the consequences.

He noted that unfortunately there was a lack of reliable and complete data, as many losses were not reported. Local law enforcement agencies do not necessarily have specific categories to classify cargo theft and the collection of data is often fragmented within countries, Gruenties said.

IUMI recently became a member of the Stakeholders Advisory Group on Maritime Security, in which organizations representing sectors of the maritime industry have an opportunity to provide updates and input on current issues relevant to the industry.

David Taylor, chairman of IUMI’s Loss Prevention Committee, spoke at TAPA’s annual conference, stating that closer collaboration and direct exchanges between insurers and TAPA members would allow better insights into supply chain operations. This in turn would better advise insurers enabling them to make better

informed pricing and more accurate coverage decisions on risks associated with the supply chain.