Cargo theft has become a growing concern for shippers, with incidents on the rise. According to CargoNet, there was a 59% increase in theft and pilferage incidents in the U.S. and Canada during the third quarter, with strategic thefts soaring by a staggering 430% year over year. As the holiday season approaches, the threat is expected to persist, targeting valuable commodities such as copper, brass, aluminum, sports apparel, and personal care products.
The Escalation of Cargo Theft:
Strategic cargo theft groups are continually refining their methods to evade common compliance practices used by brokers. They exploit stolen identities from truckers and freight brokers, making it challenging to trace the origin of thefts. Small truckers and owner-operators are particularly vulnerable, as thieves attempt to hijack their accounts or persuade them to solicit shipments from brokers. These tactics aim to circumvent identity-theft checks typically performed by brokers before tendering a shipment.
Underreporting Complicates the Issue:
The actual incidence of cargo theft is likely higher than reported, with various factors contributing to underreporting. Cargo theft is often considered a cost of doing business, and victims may avoid reporting it due to embarrassment. Additionally, law enforcement categorizes many supply chain disruptions as civil issues, making it difficult to report identity theft crimes and hostage loads. Jurisdictional issues further hinder reporting, especially when the location of the theft is unknown.
Why Shippers Need Cargo Insurance:
In the face of escalating cargo theft risks, investing in cargo insurance is crucial for shippers as carrier liability is very limited. We are able to offer insurance that protects better than most policies at very reasonable rates. Our cargo insurance provides warehouse-to-warehouse coverage for multimodal journeys, offering a defense against limited carrier liability. Here’s why shippers should consider cargo insurance:
• Comprehensive Coverage: Our cargo policy covers the full spectrum of risks, including inclement weather, delays, damage, or loss. It provides protection for the full cost of imported goods, encompassing duty, delivery, terminal fees and General Average costs.
• Ease of Procurement: We make obtaining cargo insurance hassle-free, allowing shippers to attach insurance even while a shipment is in progress. This proactive approach safeguards against the financial impact of a total loss.
• Economical Rates: We offer freight insurance packages with economical rates, maximizing coverage while ensuring affordable premiums. This ensures that shippers can protect their business without breaking the bank.
• Door-to-Door Options: Our cargo insurance provides peace of mind by covering cargo from door to door, mile after mile. This comprehensive coverage minimizes vulnerabilities throughout the entire transportation process.
• Local, Responsive Representation: For time-sensitive transactions and claims, having a company in the same time zone proves critical. Local representation enhances the efficiency of claims settlement, ensuring a swift and responsive process.
• Total Support: Our reporting system provides complete visibility, automatically updating details to keep shippers informed and current on all open claims. This transparency enhances confidence and trust in the insurance process.
As cargo theft continues to pose a significant threat to the shipping industry, shippers must prioritize proactive measures to protect their shipments and financial interests. Our cargo insurance emerges as a strategic choice, offering comprehensive coverage, ease of procurement, economical rates, and responsive support. By investing in our cargo insurance, shippers can navigate the challenging landscape of cargo theft with confidence and peace of mind.
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