Added pressures on the supply chain have been mounting in recent years but there’s another which is rearing its ugly head in the US and now in Australia – theft.
In America, criminal activity in the supply chain including cargo theft was up 41% in the first twenty weeks of 2023, theft prevention firm CargoNet reported.
Daniel Morrison, marine head of transport and logistics industries insurance firm NTI portfolio told Insurance Business there’s incidents of small package theft in Australia being noticed.
“All this online shopping means lots of smaller packages being moved around, lots of couriers, lots of deliveries,” said Morrison. “There is evidence of increased theft of smaller parcel deliveries.”
CargoNet’s 2022 data indicates events that involved theft of cargo in the US increased by 20% year-over-year.
Computer and green energy components were some of the most frequently stolen items of the year reported by CargoNet.
Transported Asset Protection Association (TAPA) indicates that food and beverages are the commodities that are stolen the most globally. The TAPA says criminal fraud is a growing threat for some transport and logistics insurance businesses.
Criminals had been found to be posing as subcontractors, including drivers, and using forged documentation.
In other supply chain-related crime, consultancy Accuracy, in the UK reported a 13% rise in procurement fraud over the past year because “supply chain disruption creates opportunities for fraudsters”. The company said varying levels of due diligence can create opportunities for fraudsters.
Risk advisory firm Kroll, in its 2023 Fraud and Financial Crime Report, found 68% of businesses expect to encounter more financial crime and 73% plan to dedicate more time to enhancing supply chain controls and conducting due diligence.
