A report published by TT Club Mutual Insurance Ltd., in partnership with The British Standards Institution Connect Screen, the Logistics Association of Chile and Signum Services Ltd. showed that cargo theft has increased within the Chilean freight transport sector, Sea News reported. The report said that pandemic-associated measures like quarantine initially led to a decline in such incidents throughout 2020 and 2021, but crime rates grew to a level 27% higher than pre-pandemic levels after the restrictions were lifted.
Report found Chilean freight crime dramatically rise
TT Club, in collaboration with BSI SCREEN, the Logistics Association of Chile (ALOG), and Signum Services, has released a comprehensive report focusing on the concerning rise in cargo theft within the Chilean freight transport sector. The report utilizes data from the four organizations to provide valuable insights into the current risk landscape.
The study highlights that pandemic-related measures, such as quarantine and movement restrictions, initially led to a decrease in cargo theft incidents throughout 2020 and 2021. However, as these limitations were lifted, crime rates surged to a level 27% higher than pre-pandemic levels, according to ALOG data.
Mike Yarwood, TT’s Managing Director of Loss Prevention, attributes the alarming statistics to social and economic factors. Inflation, rising living costs, and social unrest have driven individuals to resort to criminal activities. These circumstances have also fostered a thriving black market, particularly in food items, further fueling criminal behavior.
The report reveals that criminal organizations involved in theft have increasingly exploited individuals employed within the supply chain. These insiders provide valuable data on cargo flows, load information, and facilitate the falsification of delivery instructions. Labor strikes, common during economic downturns, create vulnerabilities in the smooth flow of goods, making such locations attractive targets for criminals. The statistics indicate that, after hijacking (57%), theft from facilities or vehicles during periods of rest accounts for 32% of all incidents.
TT’s participation in the report aims to raise awareness of these threats among operators, enabling them to take necessary precautions. The report provides detailed insights into the primary strategies employed by criminal groups, including hijacking and the use of insider knowledge. Additionally, it features a well-researched case study on the infiltration of criminal organizations in the Chilean supply chain and across Latin America.
To mitigate theft risks, the report offers guidance and advice on combating tactics such as fictitious pick-ups. It outlines various measures, including secure verification procedures, driver ID checks, staff training in identifying suspicious circumstances, and the use of tracking technology to monitor shipments and ensure proper delivery.
Yarwood emphasizes TT’s commitment to conducting further research on cargo crime globally, utilizing extensive data resources. The aim is to provide the supply chain industry with valuable information on emerging trends and mitigate the damaging impact of such losses.
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