What's Happening?
The International Union of Marine Insurance (IUMI) and the Transported Asset Protection Association (TAPA) EMEA have raised alarms over a significant increase in cargo theft and freight fraud affecting
global supply chains. The organizations report that between 2022 and 2024, nearly 160,000 cargo-related crimes were recorded across 129 countries, with total losses estimated in the billions of Euros. The incidents are particularly severe in Latin America and several African nations, where violent attacks are more frequent. Traditional threats such as hijackings and theft remain prevalent, but there is a growing sophistication in these crimes, with many becoming digitally enabled. In response, IUMI and TAPA EMEA are urging supply chain stakeholders and government authorities to take urgent action. They have issued joint recommendations for shippers, logistics providers, and insurers to enhance resilience against both physical and digital threats. These include continuous vetting of carriers and drivers, verification of contacts and documentation, adherence to security standards, and increased use of secure facilities.
Why It's Important?
The escalation of cargo theft and freight fraud poses a significant threat to global supply chains, impacting industries reliant on the timely and secure transport of goods. The financial losses from these crimes can disrupt business operations, increase insurance costs, and ultimately affect consumer prices. The sophistication of these crimes, particularly their digital aspects, highlights vulnerabilities in current security measures and the need for enhanced cybersecurity protocols. Stakeholders in the logistics and insurance sectors must adapt to these evolving threats to protect their operations and maintain trust with clients. The call for action by IUMI and TAPA EMEA underscores the urgency of addressing these issues to safeguard economic interests and ensure the stability of international trade.
What's Next?
In the wake of these warnings, it is expected that supply chain stakeholders will review and potentially overhaul their security protocols. This may involve investing in advanced technologies for tracking and monitoring shipments, as well as enhancing cybersecurity measures to protect against digital threats. Government authorities might also consider implementing stricter regulations and providing support to industries affected by these crimes. Collaboration between international organizations, governments, and private sectors will be crucial in developing comprehensive strategies to combat cargo theft and fraud. The effectiveness of these measures will likely be evaluated over the coming years as stakeholders work to mitigate the risks and reduce the incidence of such crimes.
