Credit: ibravery/Adobe stock..
Increasing cargo theft in the freight industry has shippers looking for new coverage.
Ninety percent of shippers opted for insurance in 2024, according to a recent Mothership study, after theft in the U.S. and Canada increased 14% year-over-year in the third quarter of 2024, totaling more than $39 million of cargo in nearly 800 incidents. Some incidents of freight theft can total $1 million in value or more alone.
“Cargo theft might involve entire truckloads or containers or only part of the shipment,” Mothership said in the study. “Cargo theft may include a hijacking when the truck or container is stopped or forced to stop along the route. Other cargo theft methods include a grab-and-run of a trailer’s contents when a truck is slowing down or stopped, the impersonation of a driver to steal entire loads in a fake pickup or burglary when the vehicle is left unattended.”
While freight insurance coverage protects against losses for diverse types of cargo, some commodities typically excluded are cash and financial instruments, luxury goods, live animals or plants and controlled substances.
According to Mothership, other exclusions include tobacco and tobacco products, pharmaceuticals, narcotic-based substances, cannabis and some cannabis-related substances, nuclear fuel, satellites, firearms, ammunition, explosives, used household goods and personal effects, temperature-controlled products or tech goods, such as mobile phones.
Other common reasons for cargo shortages:
- Incorrect freight measurements during loading or unloading.
- Loss in transit.
- Weather damage.
- Improper handling or natural causes such as evaporating liquid cargo or commodities settling while being delivered.
Market growth is attributed to the expansion of international trade and globalization, the growth of the logistics and supply chain industry, increased cargo shipping activities, regulatory mandates for cargo insurance and historical incidents of cargo loss or damage.
See also:
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.