IUMI calls for action on ‘alarming’ cargo theft risk

The International Union of Marine Insurance (IUMI) has called for greater law enforcement and business action to mitigate the growing risk of cargo theft, which it warns has reached “alarming proportions”. In a position paper published to coincide with its annual conference in Toronto, IUMI proposed dedicated cargo theft taskforces to coordinate law enforcement across borders and develop effective networks to work on cross-jurisdictional cases. In addition, it proposed new police units and public prosecution departments to deal with cargo crime. “IUMI urges further steps to better facilitate the safe and secure flow of goods within the global supply chain and minimise risk,” the organisation said. IUMI’s policy forum chair Helle Hammer said cargo theft “continues to surge” and is having a “negative impact on supply chains and economies around the world”. Levels of cargo theft have risen throughout Europe, Asia, Africa and the Americas and are not limited to high-value goods, with all cargo at risk, noted IUMI. “Today, there seems to be a market for almost any kind of stolen merchandise. These are no longer traded in a separate ‘black market’ but increasingly through open electronic trading platforms. This has a huge negative impact on the economy,” it said. IUMI noted that direct cargo theft losses from trucks alone are estimated to total €1.3bn and an additional €900m of business interruption costs, delays and repairs. IUMI said a more up-to-date picture of cargo-theft hotspots is needed to coordinate further mitigation action. It encourages exchange of best practice across borders on effective local risk management measures. Other proposals for action include addressing elements of cyber fraud and introducing police presence in commercial truck parking areas and cargo storage, which are particularly vulnerable to attack at night and weekends. Industry can also take action to mitigate risks in the global supply chain, IUMI said. It listed several preventative measures, including: Identify security risks and action countermeasures to lower risks in the supply chain Shipping and logistics companies must conduct due diligence when choosing agents and staff Deliver specific staff training on cargo-theft awareness and prevention Insurers should work with shipping and transportation clients to develop loss-prevention measures. Current measures to prevent cargo crime have been led by insurers and shipping companies. The Transported Asset Protection Association has developed security standards, while in Germany, insurance association GDV has developed a manual to reduce the risks around truck parks. “Cargo crimes are a large burden to society as the costs caused by stolen cargo, business interruption and loss of reputation do not simply disappear, but are factored into the pricing of the products that are moved around the globe every minute of every day,” Ms Hammer said. IUMI also said this week that the marine cargo and hull insurance markets appear to have “bottomed out” and are now showing “modest uplift”. But it warned that the 1% rise in global marine premium last year will not be enough to address the sector’s underlying problems.

IUMI calls for action on ‘alarming’ cargo theft risk

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