Cargo thefts places entire supply chain sustainability at threat

Anton Cornelissen, Manager: Transport Underwriting, Specialist Business, Santam

South Africa has unfortunately become notorious for its high crime rate which affects all sectors of the economy and hampers economic growth. Due to the rapid deterioration of the rail network over the years, road freight has become an important sector in moving cargo not only in the country but to the rest of our neighboring countries in the SADC region.

In a country marred by high levels of poverty and unemployment, which serve as a breeding ground for opportunistic criminal elements, the prevalence of cargo theft, looting and hijacking syndicates in the trucking industry over the past few years have come as no surprise. This, however, has caused a security and sustainability threat to the industry and all stakeholders in the supply chain. Whilst for the longest of times, certain goods which were regarded as high-risk commodities due to their demand were targeted, indications have shown that almost everything moved in bulk is at risk.

The restrictions which came with the COVID-19 lockdown, where only goods regarded as essential were allowed to be transported around the country, meant that it was easy for trucks to be targeted for looting and hijacking. Santam Heavy Haulage as a Heavy Commercial Vehicle and cargo insurer has had to respond to an unprecedented increase in Goods in Transit claims during this period as a result of losses suffered by operators. As a risk carrier, the analysis of recorded incidents and sharing of intel with various stakeholder has become imperative in trying to curb the frequency and impact of crimes committed against the industry. 

Whilst the use of armed escorts and telematics is encouraged and comes in handy in most instances, this is a luxury that most operators simply cannot afford in the face of an ailing economy due to sky rocketing fuel prices which have put a strain on operational costs and profit margins. Whilst tracking devices help with the recovery of trucks, syndicates now use their own trucks during hijackings to pull trailers loaded with cargo, making it difficult to recover the goods.

As a leading insurer, our role does not end with just providing insurance as we have a duty to contribute to the sustainability of the industry under difficult and trying conditions. Collaboration and concerted efforts with relevant stakeholders in the supply chain is key in mitigating the risks we are faced with as an industry. The imparting of knowledge will assist operators in planning their operations and the strategic placement of law enforcement on identified targeted routes will certainly mitigate the risk that the road freight industry is faced with on a daily. Investing in the wellbeing, upskilling and training of drivers, who play an integral part in this industry will promote responsible road behavior, and loyalty and discourage incidents of employee fidelity which plays to the hands of theft/hijacking syndicates.