Cargo thefts are still a major problem. In addition to cases where criminals steal cargo during a shipment, criminals also pose as carriers in order to take delivery of the cargo from the cargo owner.

Last year, although the number of cargo thefts in the Netherlands (unlike the EMEA region as a whole) declined, the total value of stolen goods increased sharply to nearly 25 million euros. This increase indicates a more organized approach to cargo thefts by criminals (source: Imbema).

Increasing damage from organized approach to cargo thefts

An example of such an organized approach is when criminals pose as carriers instead of simply stealing a load in a remote parking lot.

The criminals do not offer their service as transporters directly to a cargo stakeholder, as they usually have their regular carriers or freight forwarders. Through the carrier or freight forwarder, the criminals try to get their hands on transports. They do this by accepting rides through platforms like Teleroute, but also by pretending to be different than who they really are. For example, by assuming the identity of a bankrupt carrier or by making contact through customized e-mail addresses.

Once in possession of the cargo, the criminals break contact. But this usually does not happen immediately after taking charge. At first, then, the transport seems to be going well. Yet the cargo does not arrive at the appointed time and place. When inquiries are then made, the criminals state that certain circumstances have occurred and that the cargo will arrive later. In reality, the cargo has already been taken to another location. Upon discovery of the theft, the regular carrier or freight forwarder is then generally held liable by the cargo stakeholder and required to pay full compensation for damages.

Transportation conditions are far from providing protection

Conditions of carriage define the rights and obligations of the cargo interest and the carrier. The conditions of carriage are important for the carrier to limit any claims for compensation for damages in transit. But when taking shipments through platforms and/or when criminals impersonate another carrier, the theft actually begins before the shipment.

In this situation, the regular carrier or freight forwarder towards the cargo interest is not limited liability, but fully liable for the damage suffered. Accordingly, full damages will have to be paid to the cargo interest. With the theft of, say, a load of laptops, i-Phones or other high-value equipment, the carrier is obviously being charged quite a bit. Of course, recovering damages from the criminals is a hopeless task; they have already left with the sun.

For a carrier, it is advisable not to suffice with the common carrier’s limited liability insurance, but to co-insure the breach of this limited liability and thus full liability.

Reducing risk: 3 tips for carriers and cargo stakeholders

In today’s insurance market, this type of insurance with extended coverage (in which the breach of limited liability is insured) is under pressure. Insurers generally consider the risk too great and are reluctant to insure full liability. The insurability of full liability for thefts by rogue carriers of (theft-prone) loads has therefore become a huge challenge.

In addition to liability insurance, it is obviously advisable for carriers and cargo owners to reduce the likelihood of thefts.

A carrier can reduce the risk of inadvertently giving orders to criminals by:

• Limit the provision of shipments through platforms such as Teleroute, especially for high-value or theft-sensitive goods.
• Use established (sub)carriers as much as possible, establish framework agreements on topics such as subcontracting transportation if desired.
• Thoroughly vet new carriers with whom you wish to work in advance.

In addition to the carrier, the cargo stakeholder can also play an active role in reducing risk by:

• Offer transportation to known, if desired certified, carriers. Establish framework agreements with carriers on instructions and liability.
• Install security cameras, making truck and driver identifiable. These images can help experts and police uncover criminals’ modus operandi after a theft and discover any links to previous thefts to increase the chances of being caught.
• When in doubt, call your regular carrier or freight forwarder if the driver shows suspicious behavior when reporting to take delivery of cargo or if procedures are different than usual.

If, despite everything, there is a theft by a rogue carrier, be sure to stay in dialogue with all parties involved and find a workable solution together. Please realize that both the cargo owner and the carrier are victims of these types of criminals.

Also know that Kröller Boom can play a mediating role in cargo thefts.

If you would like to discuss this topic,
Then contact Kröller Boom’s Bart Tiggelaar!