An analysis of the most pressing concerns based on insights from 1,000 UK business leaders.
18 December 2024
Insights
The spike in cargo crime has put intense pressure on the UK's logistics sector, necessitating identifying and mitigating such threats as soon as possible.
Reasons behind rising cargo thefts
The Road Haulage Association (RHA) reports that the UK witnessed over 5,000 cases of cargo crime in 20232. Various factors are contributing to the increase in cargo theft.
- Easy targets with higher rewards: Whether in transit or stationary, cargo is a low-risk, high-reward target for criminals. Reports suggest that thieves are increasingly targeting items, such as electronics, alcohol and food products, because of their higher black-market value.
- Lack of secure parking facilities: Almost one-quarter of all cargo thefts in the UK occur at roadside locations. Reports suggest there is a significant shortage of secure parking spaces for freight in the UK3.
- Organised and sophisticated networks: Criminal groups are becoming more coordinated and audacious and using their networks to carry out cargo thefts. Well-trained, and with industry knowledge and operational intelligence, thieves are now often conducting highly planned robberies as opposed to opportunistic attacks.
In January 2024, a group of criminals carried out a strategic hijacking on a lorry in Oxfordshire and stealing goods valued at approximately £1.1 million4. - Rising demand for essentials: Inflation and cost of living crisis have increased demand for essential items, creating a lucrative market for stolen goods: food and beverages comprised 22% of total goods stolen from freight carriers in 20235.
- Global supply chain disruptions: The shift from simple 'break and grab' crimes to more sophisticated acts can partly be explained by the exploiting of cyber vulnerabilities in a large supply chain network. This is accentuated further as the geopolitical turmoil further feeds into the evolving risk landscape.
Types of cargo thefts
Straight theft: This typically occurs when cargo is left unattended at warehouses, loading docks or truck stops.
Strategic theft: Fraudulent documents are used to deceive carriers or shippers and access goods.
Pilferage: Vulnerabilities in the supply chain are exploited to gradually steal small amounts of goods from shipments.
Hijackings: A truck is seized during a stop, or a distraction is created, forcing the driver to pull over.
Emerging trends in cargo thefts
Rise in cyber-attacks
Logistics companies are increasingly being targeted through cyber-attacks. Shipment details are exposed, allowing criminals to intercept and steal the goods. These cyber-attacks also have the potential to go beyond cargo theft and disrupt the entire supply chain.
Document forgery
Criminals also exploit business databases to generate fake documents and use these to orchestrate strategic thefts. Companies face increasing difficulties in detecting fraud as criminal groups rapidly enhance their technological capabilities.
Use of sophisticated devices
Criminal outfits are using high-end technologies, such as GPS jamming, spoofing and EMP interferences, to create false trails or hide the location of stolen cargo.
Cargo theft: Why does it need immediate attention?
The hidden cost of cargo theft
The UK Road Haulage Association said the estimated cost of cargo crime to the economy exceeded £420 million in 20236. Beyond the significant direct losses, cargo thefts have a ripple effect on logistics companies' overall costs. Lorry damage triggers insurance claims, and also force companies to spend on additional security measures.
Rising cost of insurance premiums
Cargo theft has the potential to raise insurance premiums for affected freight and logistics companies. Insurance companies may need to additionally limit payout amounts in the face of heightened risk factors.
Reliance on conventional security
Most transportation companies still depend on conventional security measures while organised criminal groups are constantly upgrading their methods and devices. Without robust IT support and cybersecurity training, cargo companies may find it increasingly difficult to prevent potential thefts.
Government initiatives to tackle rising cargo crime
- In March 2024, the UK government announced a £16.5 million investment to enhance facilities and security as part of the government's HGV parking and driver welfare grant scheme7.
- The National Business Crime Centre (NBCC), in partnership with the National Vehicle Crime Intelligence Service (NaVCIS), has developed a guidebook to tackle high-value thefts. It provides strategies and best practices to enhance security measures, improve awareness of potential risks, and foster collaboration among stakeholders to effectively combat rising cargo crimes8. Access it here9.
NaVCIS also has a dedicated team working closely with the haulage industry's various stakeholders to gather and analyse national cargo crime data and identify trends to prevent cargo crime10.
Combatting cargo crime: Strategies to protect high-value goods
Robust technology
Investing in advanced tracking systems allows freight and logistic companies to monitor their cargo in real-time and receive alerts for unauthorised access or route deviations. Integrating surveillance cameras, motion detectors, alarms and biometric controls will also help strengthen cargo security.
Secure parking practices
Parking in fenced and monitored areas can minimise theft risks during driver rest periods.
Security training programmes
The ongoing education of drivers and staff on the risks of cargo theft is crucial in ensuring secure shipping.
Regular risk assessments
Frequent and thorough risk assessments will help companies identify vulnerabilities, mitigate threats and enhance security.
Insure your cargo
Check that your cargo insurance coverage is adequate for the value of your shipment and also includes protection against common theft scenarios.
For more information and further advice, please reach out to a Gallagher representative.
