BSI Supply Chain Services and Solutions has published its latest Global Supply Chain Security and Business Continuity Risk Index report, which shows that cargo theft is a growing supply chain continuity risk.
Brazil topped the list of countries suffering from heightened cargo theft risks, closely followed by Venezuela and Germany.
In Brazil, Rio de Janeiro saw its highest rate of cargo theft in the last 23 years in 2015, with 7,225 incidents taking place: a 23 percent increase. Probable reasons for this include the severe impact of Brazil's overall economic crisis in Rio, and the increased law enforcement efforts in Sao Paulo, traditionally the leading area for theft in Brazil, driving a shift in more organized criminal activity to Rio.
With established and well organized 'fencing' networks in place, thieves have been able to target a range of product types, covering everything from food and beverages to cigarettes, electronics, pharmaceuticals.
This increase in theft forced companies to either relocate or adopt additional costly security measures, with figures showing cargo transportation companies in Rio de Janeiro devoting an average of 15-20 percent of their budget to security measures.
Initial estimates suggest that theft increased by another 11 percent in the first quarter of 2016.
Similarly, in Venezuela, the worsening political and economic situation has continued to impact the availability of food and basic necessities. This in turn has led to an increase in looting and cargo truck hijackings of typically low-valued goods like rice, water, flour and liquor. In Aragua State for example, the rate of cargo theft has increased by 500 percent. The data shows thieves are using violence and tactics that are more frequently reserved for high-value shipments rather than loads of food, further impacting the scarcity of goods as cargo truck drivers refuse to transport them.
Daring vehicle shipment thefts have become increasingly commonplace in Germany. The figures show increases in both slash-and-grab and full-load thefts, with particular routes around the main cities and near borders being the most severely affected. Earlier this year, authorities disrupted a group suspected of stealing more than 100 cargo trucks across Germany since 2013. Separately, a group based in Lodz, Poland was apprehended and accused of stealing at least 60 fully-loaded cargo trucks in Berlin, Brandenburg, and Saxony over nearly two years. The statistics show that Saxony-Anhalt saw more than twice as many slash-and-grab incidents in first half 2016 compared to first half 2015.
Supply chain terrorism
Supply chain terrorism was another major supply chain risk during 2015,
With 319 supply chain terrorism attacks reported. The figures showed that the proportion of supply chain attacks compared to all terrorism attacks increased 16 percent, and attacks were recorded in a record 33 countries, 38 percent more than the previous year.
The report found that terrorists targeted a wider range of industries than ever before. Attacks on agriculture and food and beverage targets more than tripled since 2013, and attacks on industrial and manufacturing materials, metals, and pharmaceutical cargo more than doubled.
The 2016 Supply Chain Security and Business Continuity Risk Index report is based on data from BSI's Supply Chain Risk Exposure Evaluation Network (SCREEN) which provides continuous evaluation across 22 proprietary risk factors and 204 countries.www.bsi-supplychain.com