Cargo theft surge poses growing threat to supply chains, warns consultancy

Cargo theft has surged worldwide and the marine and cargo insurance sector has faced increasing pressure to combat sophisticated criminals in a complex cross-border environment. 

This is according to Anthony Smith, chief executive at Gallagher Bassett-owned marine and transit claims consultancy W K Webster, who noted that while cargo theft is not a new issue, it is becoming more complex to navigate as e-commerce and global distribution networks have advanced.

Smith also explained that it is not only high-value items at risk and that “evolving black market trends have led to lower value products being targeted more frequently”, while thefts during inland transit have also notably escalated. 

In a recent case, his team resolved a complex international claim for a captive client involving a shipment of beverages across Europe worth £346,400 (€400,000).

Speaking on the claim, Smith said: “This shipment was targeted by organised fraudsters, who impersonated a legitimate haulage company, going so far as to replicate real employee names and credentials.

“Although both the haulier and a rail terminal denied responsibility, we initiated legal proceedings to facilitate negotiation.

”Our team’s combination of legal acumen, negotiation skills and international presence led to a successful resolution with the haulier agreeing to cover the full loss – excluding non-recoverable duties under Dutch law.”

Navigating murky waters

According to Smith, insurers, captives or corporates that operate in multiple jurisdictions must contend with the additional complexities brought on by a patchwork of legal systems, languages and standards of evidence.

Smith concluded: “When cargo theft occurs, navigating this complex patchwork requires deep claims management expertise and global reach.

”For companies facing into this challenge, the solution becomes clear – partner with experts who possess both the global reach and the specialist knowledge required to protect their clients’ interests.”