In the latest TT Talk the club, a provider of insurance and related risk management services to the international transport and logistics industry, observed that in the 21st century terrorism had become a global challenge.
Supply chain sustainability was at risk from terrorism, and the Club said that this should be considered as part of any operator’s risk management policy.
The proceeds of cargo theft were thought to be funding at least part of terrorist activity., making robust practices around cargo security of significant importance. “Furthermore, there may be heightened risks around the volume of dangerous goods shipped globally which inherently could be used to further the aims of terrorism”, said TT.
The more hidden, indirect consequences of terrorism were also impacting the supply chain, such as a general degradation of trust, travel restrictions, disruption and delays. Furthermore, TT said, there was significant reputational risk should a branded vehicle be used in a terrorist attack. However, the Club accepted that the general operational impact from increased security checks, would undoubtedly impact efficiency in the supply chain. Such delays would give rise to negative effects on stock levels and potentially increased congestion at cross border and delivery points.