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Marine Insurance Alert - Cargo Thefts Rise in 2010

According to logistics provider FreightWatch International, cargo thefts rose by over 4% in 2010 to 899, which is the highest number on record.  81% of the reported incidents involved full truck loads or container thefts.  The most commonly stolen products were food and drinks, accounting for 21% of the reported thefts, followed by electronics at 19%.

Within the overall data, FreightWatch noted some trends;

• Cargo criminals are increasingly targeting multiple trailers in the same incident, evidencing their increasing efficiency and improving expertise.
• Cargo theft in New Jersey more than doubled in 2010.  Based on the routing and other logistical information, it is becoming apparent that there is a “clear relationship between cargo theft gangs in New Jersey and those operating out of South Florida”.
• Precious metals appear to be another target that is increasing, which is certainly tied to rapidly increasing market value of copper, aluminum, and other metals.

What does this mean?  Obviously, having marine insurance is more important than ever.  Just like any business, criminals are always looking to improve their business, and seem to be succeeding.  As such, implementing logistical strategies are now becoming important even for small businesses that ship cargo on a regular basis.  If the trends continue, marine insurance companies will eventually have to make changes, which could mean higher premiums and restrictive terms.  In the future, it won’t be the Jones that you’ll have to keep with; it will be the cargo criminals!