• Cargo in transit by road remains the dominant risk
• Food & beverage cargo increases share of commodity profile
• Thefts confirmed from unsecure truck parking average 8 per day globally
• South America ranks highest in median value of cargo per incident in unsecured locations

19^th February, 2020

The second annual report on cargo theft worldwide, issued today by leading international transport and logistics insurer, TT Club and global provider of supply chain intelligence, BSI confirms the overwhelming targeting of cargo trucks compared to all other modalities. The consistency of this trend year-on-year is also reflected in the 2019 data analysis of top commodities stolen; food and beverages representing 28% of all reported thefts in comparison with 19% in 2018. Other 2018 to 2019 results comparisons are presented in infographic #1 below.

The BSI and TT Club Cargo Theft Report 2020, available here  is unique in that it analyses data from BSI’s supply chain security country risk intelligence tool, SCREEN and TT Club’s insurance risk management and loss prevention insights. The authors believe the report can play a significant role in educating supply chain professionals in the detailed risk of cargo theft across the globe. Both parties are committed to a proactive approach to minimising human, material and financial losses resulting from cargo crime.

TT Club’s Mike Yarwood urges all those concerned about cargo security to read the report but emphasises one identified trend in particular, “Thefts either of, or from road vehicles most frequently occurred while in transit, in rest areas or an unsecured parking location. These accounted for 60% of those thefts reported. Interestingly, our infographic (#2 below) gives more detail from the regions with confirmed thefts from unsecured parking areas. The median value of losses from these incidents ranges from $100,000 in South America to just over $11,000 in parts of Asia. We are particularly keen to draw attention to the dangers of such informal parking and encourage the provision of more secured truck stop facilities.”

The report includes further advice on how theft risks can be reduced. This section is once more co-authored by BSI’s Advisory Supply Chain Security team and the TT Club’s claims and loss prevention team.

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.  

About BSI

BSI is the business improvement company that enables organizations to turn standards of best practice into habits of excellence. For over a century BSI has championed what good looks like and driven best practice in organizations around the world. Working with over 84,000 clients across 193 countries, it is a truly international business with skills and experience across a number of sectors including automotive, aerospace, built environment, food, and healthcare. Through its expertise in Standards Development and Knowledge Solutions, Assurance and Professional Services, BSI improves business performance to help clients grow sustainably, manage risk and ultimately be 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

The ongoing disruption to freight transport services and global supply chains resulting from the coronavirus are significant and will continue to evolve on a daily basis.  In addition to the heightening challenges transport operators are facing in moving their customers goods to and from China, insurance provider, TT Club is advising on the potential unforeseen exposures that may also accrue.

In a briefing compiled with the assistance of specialist international lawyers, HFW, the Club outlines how freight forwarders, logistics service providers and other intermediaries can protect themselves legally and minimise their liabilities, while still giving a quality service to their customers.

Restrictions due to labour shortages at ports and cancellations of inland transport links within China, constraints in the supply of goods due to factory closures and reduced schedules of air, ocean and rail carriers may expose forwarders to claims arising from delivery delays and cargo deterioration.

The TT Club briefing details these pitfalls and provides guidance on correct and comprehensive documentation handling. However, its underlying direction is to counsel transport operators to be proactive in their communication.  In such disruptive situations, as the one the coronavirus has precipitated, both the value of the operator’s service to his customer and his protection against future liability claims lies in good, accurate communication.

“Up-to-date status reports on their cargo’s progress, or lack of it, are vital to shippers,” emphasises TT Club’s Risk Management Director, Peregrine Storrs-Fox.  “Forwarders and logistics operators will certainly prove their mettle if they can consistently make customers aware of the ongoing attempts to problem-solve.  Careful recording of communication trails detailing such actions will also help in any disputes in the future.”

In attempting to deliver such solutions, however, a forwarder may need to use routes, carriers or modes that are less familiar, or to partner with other actors, of whom he has no experience.  Such ‘workarounds’ are common at times of crisis when pressure from customers to deliver freight by whatever means can be intense.  Additional care and due diligence must be taken when working in unfamiliar environments.  It might be necessary to take extra precautions in employing bills of lading, standard trading conditions (STC), letters of indemnity (LOIs) and other means in order to protect the stakeholders from unforeseen costs and liabilities.

The briefing, that can be accessed here, goes far in explaining these risks and the steps that can be taken to keep them to a minimum.  Underlying most of these steps however is good communication.  For example if force majeure notices are required to be sent, it must be ensured that these are fully understood by the recipient. In other cases, when delays or deviations are caused by matters genuinely outside the operator’s control, then these circumstances must be well documented.

Common sense, proactive communication with counterparties as required and the adherence to good working practices will set operators in a better position to be protected in these abnormal circumstances.  However, when stress can be heightened by unexpected pressures, it is useful to have guidelines that focus on the possibility of unusual risks, TT Club’s briefing seeks to provide such guidance.

ENDS

About TT Club

TT Club is the international transport and logistics industry’s leading provider of insurance and related risk management services. Established in 1968, the Club’s membership comprises vessel operators, ports and terminals, road, rail and airfreight operators, logistics companies and container lessors.

As a mutual insurer, the Club exists to provide its policyholders with benefits, which include specialist underwriting expertise, a worldwide office network providing claims management services, and first class risk management and loss prevention advice.

www.ttclub.com