European migration crisis results in supply chain continuity issues

Published: Thursday, 26 November 2015 10:10

The BSI Supply Chain Security Risk Index shows that European trade has been impacted by serious border delays caused by the migration crisis. Essential shipments of goods and medical supplies are being delayed and destroyed as a result, costing a collective $1Bn to the UK economy in the last year alone.

The BSI Supply Chain Security Risk Index is based on data from BSI’s Supply Chain Risk Exposure Evaluation Network (SCREEN) which provides continuous evaluation across more than 20 proprietary risk factors in 203 countries. The report highlights that closures at Calais added an estimated $1.2M each day to the cost of those transporting goods to the UK with delays of nine hours or longer, while border closures in Southern Germany, Serbia, Croatia and Hungary have hit shipping firms hard. Food and pharmaceutical shipments are worst affected, with an entire shipment of medical supplies worth $3.9 million having to be destroyed after stowaways broke into the container. 

Supply chain disruption, delays, theft and loss of goods in transit are global problems, and are not just restricted to Europe. According to the BSI Supply Chain Security Risk Index, South Africa has seen a 30 percent increase in violent hijackings over the last year, with thieves switching from targeting only high-value goods such as cigarettes to lower-value items such as clothing as well. 

Daring vehicle shipment thefts are becoming increasingly commonplace in China, with a recent spate of moving vehicle thefts. Here criminals are deploying tactics straight out of Hollywood movies, as they board speeding trucks and pass down stolen goods to their accomplices. $55,000 of pharmaceuticals were stolen in this fashion in July, with a further $40,000 worth of leather goods stolen the following month. BSI’s Supply Chain Security Risk Index provides a risk map with some of the most dangerous areas for such thefts.