No festive cheer for cargo theft victims
11/13/2014
The festive season brings little cheer to victims of cargo theft, which is most prevalent around the Christmas period.
Opportunistic thieves preying on lorries are an increasing problem in the UK. While this is a year-round problem, there is a sharp increase in thefts in the months leading up to Christmas.
The Home Office published the most recent official data on cargo theft in 2013, reporting 324,000 crimes had taken place nationwide in 2012. But accurate statistics are hard to come by since TruckPol, the UK's freight crime intelligence unit, closed.
European statistics from Freight Watch International (FWI) now list the UK as the third worst place for cargo theft in Europe. This is higher than Italy, where traditionally insurers demand higher excesses because of thefts attributed to mafia gangs, but below the Netherlands and Germany, which are the current European cargo theft hot spots.
Cargo thieves target fast-moving consumer goods such as electronics, clothes and alcohol, at Christmas more than at any other time of the year, hurting businesses and consumers in the process.
"It's not just small children that have Christmas shopping lists. Our claim statistics always show our fourth quarter as the worst," warns Mike Hall, Business Manager at Zurich's Marine Cargo Department.
Top cargo theft risks
- Type of trucks used - curtained sides can be slashed
- Location of stops - parts of the motorway network and certain areas are more vulnerable, such as overnight stops.
- Diversity of consignment - the more diverse the consignment the more appealing to thieves intending to sell the goods on
- Scams - where thieves pretend to work on the premises, but direct the delivery to a neighbouring facility to unload goods
- Low priority crime - police may not regard cargo theft as important, as usually no-one is injured and goods are insured
For more information, read The Home Office's guide to Lorry Crime Prevention.
Hard-to-trace, easily disposable cargoes are the most sought after, with electronics the most stolen items, making up 20% of cargo thefts across Europe. Unlike many crimes, cargo theft is often characterised as opportunistic, rather than targeted.
"Often thieves don't know what they are stealing," reveals Mike.
The problem is compounded because cargo theft is considered a low priority crime.
"Generally nobody gets injured and the goods are usually insured," says Mike.
Identifying areas of risk
Brokers should inform companies they can combat the problem if they are vigilant. They should ensure they know which haulier is moving their goods, where they stop overnight, how to avoid theft black spots on the major motorway networks, and whether the truck is curtain-sided and vulnerable to slashing.
"Companies need to ask these questions and not be complacent just because they are insured," advises Mike.
Scams
It's not just small children that have Christmas shopping lists. Our claim statistics always show our fourth quarter as the worst Mike Hall, Business Manager, Zurich's Marine Cargo Department.
Brokers should also make their customers aware of common rackets, such as the 'Round the Corner Scam' aka 'The London Shuffle,' where thieves pretend to work on the delivery premises.
"They meet trucks on the forecourt, but direct them to a neighbouring facility on the industrial estate for unloading, with a fabricated explanation," explains Mike.
Lorries with foreign number plates present easier prey: "A couple of hours later the company will ring up the haulier and ask where the goods are, only to be told that they have been delivered and signed for," says Mike.
Complete protection
Zurich's cargo insurance covers goods from factory to shop floor, on journeys that typically start from foreign manufacturing plants and include long sea voyages. Yet, Mike explains, the bulk of cargo theft takes place on the final leg, when goods are safely docked in the UK, and in transit to local warehouses or retail outlets.
Companies could also consider including trackers with their high value consignments, or using marked fleets that are easier for police to follow if the truck is stolen - a red circle on the roof for example, makes it easier for a police helicopter to track.
They could also insist that their hauliers take on more liability (i.e. an increased monetary value per tonne under RHA Conditions of Carriage, instead of the standard £1,300/tonne).
This contractual risk management boosts recoveries in the event of a cargo claim. However, a large part of cargo risk management is about vigilance and knowledge. An increased awareness of what might happen, alongside a behavioural shift, can boost the chances of goods arriving safely at the intended recipient's premises.
