TT Club, BSI SCREEN, the Logistics Association of Chile (ALOG) and crime investigation unit Signum Services (an associate of TT within the Thomas Miller Group) have identified a trend in Chilean freight crime, with a 450% increase in the frequency of insurance claims in 2022 from 2021.
In a new report, the organizations reveal that pandemic-induced measures such as quarantine, restrictions in movements and curfews had the effect of reducing the incidence of cargo theft for much of 2020 and 2021.
However, last year, with such limitations lifted, levels of crime rose greatly to 27% higher than pre-pandemic levels, according to ALOG data.
Additional findings show that the value of claims from 2021 to 2022 rose by 820%.
“The underlying factors that seem prevalent in explaining the alarming statistics seem to be predominantly social and economic in nature,” commented TT’s Managing Director of Loss Prevention, Mike Yarwood.
“Inflation, increases in the cost of living and social unrest have motivated individuals to turn to crime. These circumstances, which also encourage a larger black market, particularly in foodstuffs, instill heightened criminality in the population.”
The report found that the criminal organizations behind much of the freight crime have exploited those employed in the supply chain to a greater degree than in the past.
These exploited individuals provide valuable data and information on cargo flows, nature of loads and an ability to falsify delivery instructions. Labor strikes, also common in a recession, create pinch points in the usual smooth flow of goods.
In terms of mode of theft, hijacking makes up 57% of incidents, while stealing from a facility or a vehicle itself when cargo is at rest contributes to 32% of all incidents.
TT Club and the co-authors of the report say that freight crime risks can be alleviated, including secure verification procedures and driver ID checking to staff training in identifying suspicious circumstances and monitoring through tracking technology to ensure shipments are being delivered correctly.
“With the help of our partners, utilizing a wide range of in-depth data resources, TT will continue to research cargo crime internationally in order to forearm the supply chain industry with information on trends in such damaging losses,” concluded Yarwood.
