Third quarter cargo theft data in the US shows storage facilities targeted in 45% of reported cases; up from 20% of recorded cases in the same quarter in 2020.  Fall in hijacking and robbery of vehicles from 67% to just 25% this year coincidental with rise in theft of cargo units in unsecured storage areas. Congestion throughout the supply chain but particularly in and around ports is a significant contributory factor to this diversification of theft types.

London & New Jersey, 18^th January 2022

Freight insurance specialists, TT Club and the supply chain services and solutions team at BSI, the business improvement and standards company have highlighted the increased risk of theft from storage facilities seen over the past few months in the United States. The changes in theft patterns from the same quarter last year highlight a trend away from ‘on the move’ targets to those locations where cargo is temporarily stored and delivered.  These locations include traditional warehouses and depots where containers and trailers are being held awaiting collection, many of which are temporary facilities in port areas without adequate security regimes.

As the diagrammatic comparisons below show, the largest rise in the methods and locations for cargo theft was from facilities:  the percentage of the total increasing to 25% in the third quarter this year in contrast with just 7% in 2020.  At the other extreme theft of vehicles fell from a dominant 47% in 2020 to a surprisingly low 15%; in addition, hijackings halved from 20% to 10%.

In commenting on some of the more contrasting figures, Mike Yarwood, TT Club’s Managing Director, Loss Prevention said, “The is little doubt that the problems of supply chain disruption that are currently bedevilling the US freight transport system, particularly that of container congestion at ports and inland hubs, is creating increased opportunities for thieves. The static nature of cargo in these circumstances, often stored in temporary and less secure facilities, leads to criminal ingenuity adapting the modus operandi of theft in a typically resourceful way.”

TT is keen to use the insightful data provided by BSI Screen in identifying sifts in cargo theft trends and bring them to the attention of operators in as timely as a fashion as possible. Those concerned with risk management in the supply chain both in the US and throughout the world should be aware of such patterns and hopefully take measures to reduce losses, costs and insurance claims. 

TT is committed to providing resources to help supply chain stakeholders to enact such mitigating measures.  Yarwood explains, “Whatever the location and means of cargo theft such incidents can often be averted through straightforward due diligence, management processes and employee vetting and training.” To this end, TT has a webpage dedicated to advice on improving supply chain security which can be accessed via this link

https://www.ttclub.com/loss-prevention/supply-chain-security/?utm_source=pressrelease&utm_medium=article&utm_campaign=bsi_cargotheft

About TT Club

TT Club is the established market-leading independent provider of mutual insurance and related risk management services to the international transport and logistics industry. TT Club’s primary objective is to help make the industry safer and more secure. Founded in 1968, the Club has more than 1100 Members, spanning container owners and operators, ports and terminals, and logistics companies, working across maritime, road, rail, and air. TT Club is renowned for its high-quality service, in-depth industry knowledge and enduring Member loyalty. It retains more than 93% of its Members with a third of its entire membership having chosen to insure with the Club for 20 years or more.  

www.ttclub.com

About BSI

BSI is the business improvement and standards company that enables organizations to turn standards of best practice into habits of excellence, ‘inspiring trust for a more resilient world’. For over a century BSI has driven best practice in organizations around the world. Working with over 77,500 clients across 195 countries, it is a truly global business with skills and experience across all sectors including automotive, aerospace, built environment, food and retail and healthcare. Through its expertise in Standards and Knowledge, Assurance Services, Regulatory Services and Consulting Services, BSI helps clients to improve their performance, grow sustainably, manage risk and ultimately become more resilient.

To learn more, please visit: www.bsigroup.com

About BSI Supply Chain Services and Solutions
BSI Supply Chain Services and Solutions is the leading global provider of supply chain intelligence, global supply chain verification auditing services, audit compliance and risk management software solutions, and advisory services. BSI’s supply chain services and solutions and services can work independently to address specific needs or combined together to gain unparalleled visibility into your global operations. Implementing BSI’s holistic supply chain risk management suite provides organizations with a complete solution for a more sustainable and secure supply chain. To learn more, please visit www.bsigroup.com/supplychain

Crime report from TT Club and BSI finds over three-quarters of cargo theft occurs at logistics hubs and warehouses, with Free Trade Zone (FTZ) particularly vulnerable locations.

Dubai & London, 16^th December 2021

The well-established collaboration between international freight transport insurer, TT Club and the supply chain services and solutions team at BSI, the business improvement and standards company has produced the latest report on trends in the theft of goods entitled, ‘Cargo Crime in Gulf Countries and Regional Free Trade Zones’¹. Intended as a risk mitigation tool for transport operators, its timing might be more relevant given the spike in cargo movements running-up to the seasonal festivities.

Key findings include:

• 76% of cargo theft is from warehouse and storage facilities
• Crime hot-spots in UAE & Saudi Arabia
• High-value goods such as electronics targeted
• Insider assistance and corruption plays a prominent role
• Smuggling of illicit contraband prevalent in Free trade Zones (FTZ)

TT Club’s Mike Yarwood comments, “Our reports are intended to alert those in the supply chain to the variable and developing trends in the risk of cargo theft during intermodal transportation.  The unique combination of BSI sourced data on criminal activity and TT Club’s insurance claims records provides valuable intelligence to operators.”

“Regular updates of this nature are essential as criminal gangs are constantly altering their points of attack.  The current prevalence of supply chain congestion, delays, disruption, and in the Middle East region in particular packed warehouses, makes such information critical.”

The report highlights that warehouse thefts and supply chain corruption are the stand-outs, with a concentration on higher risk areas across the United Arab Emirates (UAE) and in the Kingdom of Saudi Arabia (KSA). The role special economic zones play in the Middle East also effects regional disparities in cargo theft.

Free Trade Zones (FTZ) are a significant feature of the regional economy and represent potential vulnerabilities for supply chains by virtue of facilitating high volumes of trade under simplified customs procedures that can provide opportunities for criminals to act. Furthermore, as Gulf Cooperation Council (GCC) economies return to pre-pandemic levels, and data provided by the International Road Transport Union (IRU) is projecting growth in trade², it is possible that criminals will also seek to exploit these higher volumes of cargo throughput to introduce illicit drugs and counterfeited products into shipments.

Umberto de Pretto, Secretary General, International Road Transport Union comments, “The IRU, together with its members and partners, continues to strengthen global transport supply chains, notably through the implementation of international standards such as TIR for compliance management and security, and through innovative training to help road transport professionals identify risks and adapt operations to avoid security threats.”

There is also valuable guidance on mitigating the risk contained in the report.  These guidelines cover avoiding the introduction of drugs into shipments; reducing theft from facilities and combating counterfeit smuggling, all of which are of particular concern in the Middle East region.

“Operators should be consistent in their vigilance, especially in the current season of festivities when the movement of gifts is at a peak” recommends Yarwood.  “TT’s intention is to help reduce theft related loss and to that end these reports offer loss prevention advice to complement the joint analysis of current trends.  As well as financial damage these incidents can cause severe operational disruption and unquantifiable reputational damage to supply chain service providers.  As a consequence, it remains of key importance to the transport industry to identify, prevent and report any criminal activity.”

¹A PDF of the full report is available for free download Here

² https://go.iru.org/9N

ENDS

About TT Club

TT Club is the established market-leading independent provider of mutual insurance and related risk management services to the international transport and logistics industry. TT Club’s primary objective is to help make the industry safer and more secure. Founded in 1968, the Club has more than 1100 Members, spanning container owners and operators, ports and terminals, and logistics companies, working across maritime, road, rail, and air. TT Club is renowned for its high-quality service, in-depth industry knowledge and enduring Member loyalty. It retains more than 93% of its Members with a third of its entire membership having chosen to insure with the Club for 20 years or more.   

www.ttclub.com

About BSI

BSI is the business improvement and standards company that enables organizations to turn standards of best practice into habits of excellence, ‘inspiring trust for a more resilient world’. For over a century BSI has driven best practice in organizations around the world. Working with over 77,500 clients across 195 countries, it is a truly global business with skills and experience across all sectors including automotive, aerospace, built environment, food and retail and healthcare. Through its expertise in Standards and Knowledge, Assurance Services, Regulatory Services and Consulting Services, BSI helps clients to improve their performance, grow sustainably, manage risk and ultimately become more resilient.

To learn more, please visit: www.bsigroup.com

About BSI Supply Chain Services and Solutions
BSI Supply Chain Services and Solutions is the leading global provider of supply chain intelligence, global supply chain verification auditing services, audit compliance and risk management software solutions, and advisory services. BSI’s supply chain services and solutions and services can work independently to address specific needs or combined together to gain unparalleled visibility into your global operations. Implementing BSI’s holistic supply chain risk management suite provides organizations with a complete solution for a more sustainable and secure supply chain.

To learn more, please visit www.bsigroup.com/supplychain

Climatic changes, particularly extreme events are a universal concern for those managing international supply chains, and for the operators of the transport infrastructure that service them. Freight transport and logistics insurance specialist TT Club’s analysis of weather-related risk highlights water damage to cargoes in particular.

London, 8^th December 2021

Analysis of the insurer’s claims over the last three years finds:

• Inland operations suffered damage caused by extreme weather in 32% of cases
• Unsurprisingly, locations near a coast are more susceptible to weather related incidents (68% of cases) with 16% of claims involved heavy rainfall causing flooding
• Property damage through strong winds and microbursts featured in 74% of weather-related claims through the period
• The maritime mode accounted for 65% of reported claims. This in part explained by the length of time cargo is in transit and exposed to variable climatic zones
• Road transit next most prominent mode at 14% 
• Wet damage while in storage accounted for 13% of reported claims; 31% of these as a result of flooding

Recent, and on-going meteorological events, particularly in the Vancouver area are timely instances of extreme weather such as unprecedented rainfall, tidal surges and wind microbursts becoming more common.  Whilst many storm events are considered geographically seasonal – such as those in the Tropics – the global supply chain as a whole must take adequate steps to prepare for isolated severe weather events. Typically wind strength is most ferocious in coastal areas. However, it is often the surge and flood risk that can cause greater problems, both on the coastline and further inland.

The incident data compiled by TT illustrates that the traditionally wetter summer months in the northern hemisphere are when cargo is at greater risk; extreme flooding across broad swathes of continental Europe during July and August 2021 corroborate this as an emerging (or emerged) risk. Further, recent months have seen extraordinary volumes of rainfall over short periods in various parts of the globe, resulting in flash flooding and causing significant damage.  

TT Club’s Risk Management Director, Peregrine Storrs-Fox elaborates, “The associated losses of such incidents can be far reaching; water is unforgiving and has the ability to penetrate and cause significant damage. Flood water is inevitably dirty, increasing damage and in many instances creating health challenging situations. Extreme weather events can be challenging to predict but operators of warehouses, terminals and port areas need to keep ‘fresh’ their assessment of the changing risk profile in relation to climate experience .”

TT notes that understanding of meteorological trends, particularly in light of global warming, is doubtless advancing.  The capability to monitor, record and predict weather patterns will continue to develop. This understanding will not physically protect property, equipment and operations but, when utilised as an integral component of thorough risk assessment, it should inform operational decision-making.

The insurer’s analysis has also found that 65% of cargo damage incidents are attributable in part to the way that goods are packed within a container or cargo transport unit (CTU). That data for 2020 suggests 25% of wet cargo damage was caused by water ingress to the CTU through pre-existing damage that probably should have been identified as part of the cargo packing process. Many claims therefore can be avoided with a robust pre-loading condition checking procedure and correct packing processes.

The CTU Code¹ and the more recent ‘ CTU CODE – a quick guide’² and its complementary Container Packing Checklist published by the Cargo Integrity Group, provide invaluable guidance for actors in the supply chain to mitigate such risks. 

“Climatic change is a fact of life,” concludes Storrs-Fox, “as such risk assessment exercises by supply chain stakeholders must necessarily take account of extreme weather events, as unpredictable as they may be.  However, sensible operational measures and the employment of best practice procedures pertinent to individual organisations’ functions will go a long way towards avoiding disastrous consequences when the next rainstorm hits.”

¹ IMO/ILO/UNECE Code of Practice for Packing of Cargo Transport Units (CTU Code)

² The CTU Code — Quick Guide and Checklist is now available in all six official United Nations languages plus    Italian in PDF format, downloadable HERE

About TT Club:

TT Club is the established market-leading independent provider of mutual insurance and related risk management services to the international transport and logistics industry. TT Club’s primary objective is to help make the industry safer and more secure. Founded in 1968, the Club has more than 1100 Members, spanning container owners and operators, ports and terminals, and logistics companies, working across maritime, road, rail, and air. TT Club is renowned for its high-quality service, in-depth industry knowledge and enduring Member loyalty. It retains more than 93% of its Members with a third of its entire membership having chosen to insure with the Club for 20 years or more.

www.ttclub.com