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Allianz Commercial recently released its annual Safety and Shipping Review, discussing trends and risks impacting the global shipping sector. Analyzing loss activity over the past year, the report found that cargo theft is increasing – in frequency, scope, and sophistication.
With high inflation and a cost-of-living crisis affecting many countries in recent years, theft has been on the rise. According to Verisk CargoNet, cargo theft activity in North America reached unprecedented levels in 2024: a total of US$455mn worth of goods were stolen in the region, with 3,625 reported incidents, a 27% increase from 2023. In Europe, Middle East and Africa (EMEA), an average of €1.2mn of goods are stolen from supply chains every 24 hours, according to data from the Transported Asset Protection Association (TAPA). Almost €37mn of goods were stolen in December alone, the second highest monthly total of 2024 after the €40mn recorded in November, and these numbers are likely to be only the tip of the iceberg.
Food and household goods remain the top targeted type of commodity for theft, although thieves are also going after cosmetics, vitamins and supplements, consumer electronics, copper products and cryptocurrency mining hardware. Theft is the standout trend for cargo claims.
Attractive goods such as mobile phones and luxury items like perfume have always been targeted by criminals, but now the sector is seeing a much wider range of goods being stolen. Increased cost-of-living expenses create an incentive to steal everyday items. High value goods like pharmaceuticals are more difficult to sell on the black market, but food and attractive consumer goods are far easier to move on.
For shippers with cargo insurance, the rise in the frequency of theft claims is driving higher loss ratios amid large, repeated thefts of attractive goods. And with shipment values of up to $1mn, repeated thefts lead to high attritional losses and a deterioration in loss ratios.
Additionally, the criminals behind cargo theft are increasingly sophisticated and well organized, committing “smarter theft.” The methods to create fraudulent documentation and false identity-related claims, in particular to access higher value cargo, are also becoming more advanced. Insurers are seeing a significant increase in such claims, often leading to the loss of an entire shipment. In the past, cargo theft was more opportunistic, but criminal organizations are now using better intelligence and specifically targeting certain industries and shipments.
Costly cargo theft claims often have a common root cause: lax adherence to security and risk management controls. In many cases, the insured’s own risk management policies have not been adhered to. For example, unauthorized stops and overnight stays, or cargo values per transport that exceed the sum insured and company policy. It is a key first step that companies develop risk management policies and procedures, but they also need to make sure they are implemented and complied with.
To keep up with thieves becoming more sophisticated, shippers should continuously carry out cargo theft analysis to understand the causes and take effective steps to prevent losses. The selection of logistics providers and security need to be tailored to be effective to protect cargo from being targeted. This can be supported by GPS trackers for the most vulnerable products or routes.
Targeted loss prevention measures taken by shippers and insurers have been successful in the past. Five years ago, there was a spike in temperature-related claims for pharmaceutical shipments. Such claims are no longer an issue with improved loss prevention and enhancements to underwriting strategies. A proactive approach to understanding and addressing cargo theft is crucial to safeguarding shipments, and enlisting the help of experienced insurers can help shippers be prepared.
To read global insurer Allianz Commercial’s 2025 Safety & Shipping Review, please visit: Safety and Shipping Review
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