THE latest analysis from international freight insurer, TT Club and business improvement consultants BSI SCREEN, reports dramatic 2022 year-on-year increases in freight crime in Chile with incidents of theft estimated at 27 per cent up on pre-pandemic levels.

The two organizations, together with the Logistics Association of Chile (ALOG) and the crime investigation unit, Signum Services (an associate of TT within the Thomas Miller Group), recently published their report entitled 'Freight crime in Chilean supply chains'.

The report notes that pandemic-induced measures such as quarantine, restrictions in movements, curfews had the effect of reducing the incidence of cargo theft for much of 2020 and 2021. However, last year, with such limitations lifted, levels of crime sprung back with vengeance to 27 per cent higher than pre-pandemic levels, according to ALOG data.

"The underlying factors that seem prevalent in explaining the alarming statistics seem to be predominantly social and economic in nature," comments TT's managing director of loss prevention, Mike Yarwood.

"Inflation, increases in the cost of living and social unrest have motivated individuals to turn to crime. These circumstances, which also encourage a larger black market, particularly in foodstuffs, instil heightened criminality in the population."

The report found that criminal organizations that are behind much of the theft have exploited to a greater degree than in the past those employed in the supply chain, to provide valuable data and information on cargo flows, nature of loads and an ability to falsify delivery instructions.

Labour strikes, also common in a recession, create pinch points in the usual smooth flow of goods. Such locations become a focal point for crime. The reported statistics show that second to hijacking as a mode of theft (57 per cent), is the combined activity of stealing from a facility or of a vehicle itself, when cargo is at rest, contributing to 32 per cent of all incidents.

"With the help of our partners, utilizing a wide range of in-depth data resources, TT will continue to research cargo crime internationally in order to forearm the supply chain industry with information on trends in such damaging losses," concludes Mr Yarwood.