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Focus: Global Supply Chain and Logistics

Our Weekly Feature Article on Topics Related to Global SupplyChain Logistics
 

From SCDigest's On-Target e-Magazine

- April 22, 2013 -

 

Global Logistics News: In the US and Mexico, Cargo Thieves Prefer to Eat and Drink


Incidents in Mexico Decline in Q1, but Probably Due Only to Effort to Reduce Reporting of Bad Conditions, Says FreightWatch; Official Warns Truckers to Stay Off Some Mexican Highways

 

SCDigest Editorial Staff

 

The cargo safety experts at FreightWatch International have released the latest in a series of on-going reports and analysis on freight crimes, and while it appears Mexican cargo was safer in Q1, think again, the company says.

FreightWatch recorded 303 cargo theft incidents in Mexico during the first quarter, down from 482 in Q1 2012, or what appears to be a reduction of about 38%. (The 303 number, we'll note, still represents more than three incidents per day.)


SCDigest Says:

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In the US, Florida lead the way in incidents at 34, followed by Texas at 30. FreightWatch notes California is typically in the top state spot, but dropped to fourth in this three-month period.

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So, is Mexican transportation now becoming more secure, after clearly getting much worse over the past six years or so? Likely not, FreightWatch says, noting that "in 2012 some media announced a self-imposed gag on reporting on organized crime activities, noting concerns for the safety of their reporters and other employees."

It also says that government reporting on incidents seems to have been reduced, likely in an effort to help Mexico soften its reputation for violence and being a mad place to do business.

"The fact remains, Mexico continues to be a hot spot for cargo theft," the report notes.

It notes that Juan Carlos Muñoz Marquez, president of the Transportation Committee of the Mexican House of Representatives, was quoted in the press there as saying that highways in the states of Tamaulipas and Michoacán should be avoided by transporters due to high levels of crime, including incidents now occurring in broad daylight.

Which Mexican states are the most dangerous? In terms of the number of incidents, the state of Mexico as usual topped the list, with 39 cargo thefts (see graphic below). The report notes that although the state of Nuevo Leon dropped off the list this quarter, it again could be more of a reporting issue than a real improvement in security, and that "Nuevo Leon is still considered a high risk area for cargo crime."

 

 

 

Cargo Thefts in Mexico Q1 2013 by State

 

 

Source: FreightWatch

 


Outright truck hijackings remain the top type of incident, representing a full 61% of the total theft types in Mexico in the quarter, far ahead of number 2 trailer theft, which came in at 14%. The hijackings are especially of concern, of course, due to their violent nature and risks to drivers.

FreightWatch also says it is seeing a trend of more railway cargo thefts in Mexico, "with the industry sustaining losses in the millions of dollars."

US Cargo Thefts Really Did Decline

The report for US cargo theft incidents covers Dec. 2012 to through February of this year, and found that in that period, the total number of incidents was 199, down about 20% from the previous three-month period (Sept. - Nov. 2012).

(Global Supply Chain Article Continued Below)

 

 
CATEGORY SPONSOR: SOFTEON

 
 

The average loss value per incident during this period was $133,711, down 39% from the previous three-months.

SCDigest also found the state view here in the US interesting as well, with Florida leading the way in incidents at 34, followed by Texas at 30. FreightWatch notes California is typically in the top state spot, but dropped to fourth in this three-month period.

Cargo Thefts in US December to February 2013 by State

 

 

Source: FreightWatch


Fortunately, hijackings in the US are very rare, although not unheard of. Thefts of trailers, usually from unsecured lots, were by far the most common type of theft, at 66%. We also found interesting that there were 15 incidents involving deceptive pick-up of trailers in the US.

And regardless of country, Mexican and US cargo thieves go for the food and drink. 25% of US cargo thefts in the period were of food or beverage (not including alcohol), almost double number 2 electronics, which came in at 13%.

In Mexico, food and beverage thefts comprised 29% of the total, 10 percentage points ahead of number 2 building/industrial products, which were 19% of the total.

In the US, there was a single theft of tobacco products worth some $2 million. That's a lot of freight to go up in smoke.


Did you find this cargo theft data interesting? How big a threat is this? Let us know your thoughts either via email or in the Feedback section below. We will keep your comments anonymous by request.

 


 

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