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Why should you consider goods in transit insurance for shipments?

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What you need to know about trucking cargo theft?

According to the CargoNet report released in 2022, cargo theft incidents have been rising at an alarming rate of 20% annually. Additionally, a staggering 63% of all thefts involve truckers and the goods they transport, as revealed in a study conducted by the International Road Transport Union (IRU). Moreover, an astonishing 61% of these thefts occur at parking spots frequently used by truck drivers for taking breaks. Therefore cargo theft risk mitigation measures are vital to cover huge losses. Implementing effective strategies, technological solutions and claiming the benefits of goods in transit insurance will help to counter the challenge efficiently.

4 ways through which cargo in transit theft can happen

The potential danger of cargo theft is a common and recurring issue in the logistics industry. However, ensuring necessary measures along with goods in transit insurance can be an effective cargo theft risk mitigation initiative. In order to implement the required strategies, it is important to understand the nature of cargo theft. There are a number of ways in which truck cargo theft occurs including truck hijacking, warehouse burglaries, driver deception and cyber threats.

  • Truck hijacking: Trucking cargo theft can occur in the form of truck hijacking where thieves will follow the truck from its departure point until the next stop to hijack the truck and steal the goods.

  • Warehouse burglaries: Cargo in transit theft can also occur in places such as truck parking lots and warehouse facilities where cargo is supposed to be loaded or unloaded during which the driver might leave the vehicle unattended for a brief period of time.

  • Driver deception: In some cases, drivers can pretend that there was a trucking cargo theft while in reality they willingly hand over the cargo in return for money. It is also possible for thieves to disguise themselves as legitimate drivers during the shipment delivery process and thereby gain access to the cargo.

  • Cyber threats: Cargo theft incidents can also occur when thieves use technology to manipulate data of shipping companies by tracking shipments and altering the information to carry out their robbery.

How can you implement cargo theft risk mitigation strategies?

There are a number of factors that affect cargo theft including the type of shipment (high value goods are often targeted), location (some routes are either isolated or dangerous), vehicle type (goods carried on certain types of trucks and trailers are stolen frequently) and security level (some vehicles do not have security measures in place to detect cargo theft). However you can utilize strategies and technology for cargo theft prevention. 

  • Strategies: It is important to restrict the number of staff members with access to shipping details for maximum security. To avoid hijacking that leads to trucking cargo theft, drivers should be instructed to drive without taking too many breaks for local deliveries within the first few kilometers of departure. Before dispatching vehicles and shipments it is necessary to document the process and ensure that the driver is authorized to collect the cargo. 

  • Technology: Installing tracking systems can help to detect potential theft and alert drivers to take necessary action. For instance, using a GPS for geofencing prevents vehicles from traveling on restricted roads which are often prone to danger and alerts managers whenever vehicles deviate from the designated path. Moreover, features like engine-cut help to control the vehicle remotely when hijacked by switching off the engine as a solution for cargo theft prevention.

Why should you consider goods in transit insurance for shipments?

In 2022, CargoNet reported a staggering $223 million worth of cargo theft. The most effective way to mitigate financial loss with cargo theft is to claim goods in transit insurance. In the event of a cargo theft, truck load insurance can be claimed by submitting a claim report, noting the damage sustained, reviewing the loss incurred and providing essential paperwork. All you have to do is choose the best cargo in transit insurance provider with a streamlined process, comprehensive coverage, prompt claim settlements and professional assistance.

Let’s Wrap Up!

Cargo theft is a common and recurring problem in logistics and it can occur in multiple ways including truck hijacking, warehouse burglaries, driver deception and cyber threats. However, by implementing effective strategies, technological solutions and claiming insurance will help to counter the challenge efficiently. Goods in transit insurance is the most effective solution to mitigate the financial losses arising from cargo in transit theft.

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