Saturday 22nd Oct 2016 - Logistics Manager

Freight crime continues to plague industry

Logistics providers could find themselves under increasing pressure to tighten security if freight crime continues to plague the industry, according to logistics insurance broker a&b.

a&b has reported that hijackings and warehouse raids have increased five-fold in the past six months, with high-end computer and mobile technology being top of criminal hit lists.

The report said that seventy-five incidents have occurred in the Heathrow area alone since June 2005.

David Riley, director at a&b, said that in recent months the company has experienced record enquiries many of which were from victims of crime. He said that some companies have claims rejected due to “inadequacies in their logistics provider’s security operations.”

Riley said that if a logistics provider did not follow correct procedures for releasing goods to a customer, then a cargo insurer would refuse to cover claims arising from “fraudulent or negligent release of goods to an unknown party”. He went on to say that if a logistics provider failed to adhere to security conditions, then a company’s freight liability insurers can “refuse to indemnify them for claims, which effectively means that the insurance company actually insuring the goods, can pursue the logistics provider themselves for reimbursement following negligence”.