Continued globalisation has led to an increase in freight movement across international borders. Although, this has been accompanied by inflation and widespread shortages, contributing to a rise in trailer robberies.
Cargo theft represents a serious challenge for fleet managers. Security breaches not only endanger drivers but also result in significant financial losses for businesses. While managers strive to optimise efficiency and reduce fleet costs, theft undermines these efforts.
Fortunately, advancements in the industry have introduced more effective ways to secure fleets and their cargo. In this guide, we explore preventative measures fleet managers can take to reduce the risk and impact of cargo theft.
Cargo Theft Statistics
In December 2022, the Transported Asset Protection Association (TAPA) recorded an average of nearly 20 cargo theft incidents per day across Europe, the Middle East, and Africa (source) - amounting to over €17 million in losses in that single month.
The scale of the issue within the UK is equally alarming. In 2023 alone, there were 5,370 reported incidents involving HGVs and cargo theft, with losses exceeding £68.3 million in wholesale value. However, this figure represents only part of the problem. Freight crime in the UK is estimated to cost businesses around £250 million annually, while theft across Europe results in losses of approximately €8.2 billion each year.
Worryingly, the situation appears to be worsening. A 2024 report from the British Standards Institution highlights a 13% year-on-year increase in cargo theft.
The Impact of Cargo Theft
The data clearly shows the financial consequences of freight crime. Yet, beyond the economic cost, cargo theft significantly disrupts supply chains. A particularly concerning aspect is that the majority of stolen goods remain unspecified, meaning that no fleet is safe, whether transporting food, fuel, electronics, or other high-value items.
Cargo is especially vulnerable during transit on public roads, due to the amount of unsecured parking locations and the long distances between each destination point. This creates opportunities for theft both while vehicles are stationary, as well as when they are moving.
Different Methods of Cargo Theft
Criminals use a range of tactics to access and steal cargo in transit or storage, and understanding them helps in developing an effective cargo theft prevention strategy:
- Direct theft: This is when thieves steal an entire consignment directly from a storage facility, such as a warehouse or a lorry parked at a loading bay.
- Strategic theft: Also known as coordinated theft, this involves orchestrated operations where criminals exploit knowledge of transport routes to intercept shipments.
- Vehicle hijacking: Hijackings could be opportunistic or premeditated. In some cases, a lorry might be taken by force, while in others, it may be stolen when left unattended overnight or unlocked.
- Identity fraud: Cybercriminals can infiltrate digital systems, steal credentials, and impersonate authorised drivers in order to fraudulently collect goods or gain access to vehicles.
- Stowaways: At border crossings, individuals often conceal themselves within cargo vehicles, thereby compromising the safety and integrity of the load.
Considering the abundance of forms of cargo theft, the natural question is: how can fleet managers combat cargo theft?
Cargo Theft Prevention Strategies
Cargo theft statistics appear discouraging. That said, one of the transport industry's strengths lies in its ability to adapt and evolve. When it comes to cargo theft prevention, there are many solutions available, including:
Asset tracking is a way for fleet managers to accurately monitor and record the location, status, maintenance history and schedule, value, and ownership of the physical items being carried by a fleet.
Asset tracking is achieved through the use of technology like RFID, barcodes, and GPS. GPS gives fleet managers real-time visibility of their fleet’s cargo, with sensors detecting if something goes wrong through geofencing. Such visibility over assets is essential because it results in quick and reliable responses in cases of cargo theft.
Route planning is central in fleet management, but particularly significant in preventing cargo theft. Secure route planning relies on intelligence - it involves selecting routes known to have a lower risk of criminal activity.
For example, cargo theft increases during holidays, weekends, and periods when vehicles are stationary. Additionally, various organisations provide detailed accounts and reports on regional theft trends and high-risk areas. Incorporating such information into fleet routes directly reduces the likelihood of cargo theft during transit.
Camera video monitoring through dash cams is a measure which enhances cargo theft prevention by providing vision both inside and outside the vehicle. An ideal setup includes front-facing, driver-facing, rear-facing, and side-facing cameras, the front and in-cab cams being equipped with AI.
These systems detect suspicious activity, such as unauthorised access to cargo, erratic driving behaviour, or potential threats during stops. Alerts are actively sent to fleet managers, enabling swift responses to security breaches. This level of surveillance not only deters criminals, but also provides evidence in the event of an incident, improving overall cargo security.
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4. Predictive Maintenance
Proactive vehicle maintenance is a cornerstone of fleet safety. By adopting preventative maintenance, fleet managers can identify and address mechanical issues before they escalate. This minimises the occurrence of unscheduled stops, moments that could expose cargo to theft.
Predictive tyre maintenance is especially useful. Continuous monitoring of tread depth, pressure levels, and overall tyre performance allows for timely interventions, lowering the risk of blowouts. Similarly, vehicle checks should be standard practice. Prior to every journey, trailers and cargo containers must be inspected for signs of tampering or unauthorised access.
Fleet drivers are the ones who experience cargo theft first-hand. They should, therefore, be fully prepared and trained for such incidents.
Driver training refers to programmes covering procedures for secure cargo pickups, deliveries, driving behaviour, stopovers, on-road control zones, and actions to take in both suspected and confirmed cargo theft scenarios. Guidance here supports security risk assessments and broader decision-making, so it’s vital to driver safety within fleet management.
The Role of Fleet Insurance in Cargo Security
Fleet insurance and telematics insurance play a crucial part in protecting fleets against cargo theft. Managers are strongly advised to get comprehensive coverage which extends beyond collision incidents to include non-accidental losses during transit. Understanding the terms, including limits, excesses, and exclusions, makes sure there are no surprises should a claim need to be made.
It’s equally important for fleet managers to collaborate closely with their insurers to design customised insurance policies that reflect the specific nature of their operations. Factors such as the type and value of cargo, the frequency and length of journeys, and the regions covered should all inform its structure.
Additionally, arrangements should be reviewed regularly. Failure to adjust fleet insurance coverage in line with operational changes can leave notable gaps. If an uncovered incident occurs, not only could recovery costs be high, but future premiums might also rise, leading to even more financial pressure.
Cargo Risk Management from MICHELIN Connected Fleet
Cargo theft is successful when it is unexpected and unanticipated. Although it’s easier to ignore the data and not be cautious, the risk of cargo theft is unavoidable. It’s a responsibility for fleet managers to be prepared when crime is directed towards their vehicles, or reputational damage will inevitably follow.
We at MICHELIN Connected Fleet understand the severity of cargo theft, and so have implemented preventative measures within our fleet management solutions. Our asset tracking technology allows fleet managers to rest assured regarding the safety of their cargo, all while ensuring compliance and the optimisation of overall operations.
If you’re interested in a cargo safety solution which leverages a combination of software and hardware to improve the security of both your fleet and its drivers, then be sure to make an enquiry into what our services can do for you today. For more reading material, feel free to browse our resources centre.
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