SCOTTSDALE, Ariz., Sept. 13, 2016 /PRNewswire/ -- Brazil topped the list of countries suffering
from heightened cargo theft risks, according to the latest Global
Supply Chain Security and Business Continuity Risk Index report
from BSI Supply Chain Services and Solutions, closely followed by
Venezuela and Germany.
The report showed that cargo theft continued to have a
significant impact on trade globally, but highlighted that several
countries were particularly affected.
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% increase. Likely 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% of their budget to
security measures.
Worryingly, the rate of increase in theft is continuing into
2016 due to new gang activity in the Rio area and the movement of
some gangs from Sao Paulo. Initial
estimates suggest that theft increased by another 11% 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%. 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.
Across 2015 BSI recorded 319 supply chain terrorism attacks. 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% 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.
Jim Yarbrough, Global
Intelligence Program Manager at BSI commented:
"Companies have always faced a wide range of challenges to their
supply chain, but these latest figures indicate just how severe the
impact of violent theft can be. These events are creating extreme
levels of risk for organizations, both directly affecting the
bottom line and disrupting the supply chain in ways which, if not
tackled, could do serious harm to a company's hard-earned
reputation.
We know that for every shipment stolen, delayed, contaminated or
destroyed, the cost to the end-consumer is raised. For exports this
hurts competitiveness, undermines productivity and risks jobs; for
imports it raises the cost of living for each and every
citizen.
These organized gangs of thieves will always look for new ways
to seize goods, so the ability to quantify and mitigate supply
chain risks throughout the entire lifecycle is paramount.
Understanding the risks, where they exist, and how likely they are
to occur will help organizations minimise the delays, costs, and
dangers that can result."
To download a copy of BSI's SCREEN Global Intelligence Risk
Index Report, please click here.
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. The data
reveals a clear picture of the changing global threat landscape and
how this varies by country, continent and industry sector.
About BSI Supply Chain Services and Solutions
BSI
Supply Chain Services and Solutions is the leading global provider
of supply chain intelligence, auditing services, audit compliance
and risk management software solutions, and advisory services. Our
mission is to help corporations, governments and associations
identify, manage and mitigate global supply chain risks and
maintain world class governance risk and compliance programs.
Our holistic supply chain risk management suite is designed
to predict and visualize risk, and develop robust risk mitigation
and compliance management programs to protect your supply chain,
brand and reputation. Our intelligence-infused supply chain
solutions and global network empower our clients to understand
global supply chain risk with unequaled precision.
To learn more, please visit www.bsi-supplychain.com
Media enquiries:
Kara Martin
BSI Supply Chain Services and Solutions
Tel: 480 448 7278
Email: kara.martin@bsigroup.com
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