How Cargo Tracking is Important for Business Success?

Cargo Theft has become a significant issue in the industry, sparking widespread concern and discussions about how it can be prevented or controlled. The BSI and TT Club report aims to educate the transportation and manufacturing sectors about the dynamic cargo theft risks present globally.

By raising awareness of cargo crime trends, the industry can adopt a proactive approach to preventing cargo theft, thereby minimizing financial losses and protecting brand reputation.

Global Cargo Theft Trends

Key Findings

The BSI and TT Club report highlights several critical findings about global cargo theft trends:

• Theft from road vehicles accounts for the highest proportion of cargo theft, at 84%. This highlights the vulnerability of road transport, which is the most common mode of cargo transportation worldwide.
• The most significant type of cargo theft is Slash and Grab, representing 26% of incidents globally. This method involves cutting open the vehicle or container to steal goods quickly.
• Food, beverage, alcohol, and tobacco make up the most common commodity group targeted, accounting for 34% of cargo thefts. These commodities are highly desirable and easy to resell, making them prime targets for thieves.
• South America leads in the median value of each theft at $77,000, indicating a high-value target for cargo thieves in this region.

The research highlights that road transport is the most common mode of transportation targeted, with significant variations in the median value of stolen cargo:

• Asia: $19,000
• Europe and North America: $60,000
• South America: $77,000

The methods of cargo theft vary significantly across regions, with global aggregation showing:

• Slash and Grab: 26%
• Theft from Vehicle: 19%
• Hijacking: 17%

Hijacking is the most common method in North and South America, at 37% and 52%, respectively. In Asia, theft from facilities is more prevalent at 43%, compared to hijacking at 19%.

Regional Variations

Europe

In Europe, 75% of cargo thefts occur using the “slash and grab” tactic, accounting for 50% of all reported losses. The UK alone accounts for 86% of incidents, mainly occurring on Tuesdays, Wednesdays, and Thursdays. This pattern suggests a high level of organized crime activity targeting specific days of the week when security may be lower.

Asia

China and India are the most frequently recorded countries with cargo theft in Asia. The most targeted commodities include food and beverage, metal, and electronics, influenced by local market conditions. The high frequency of thefts in these countries highlights the need for improved security measures and greater awareness among businesses operating in these regions.

Middle East and Africa

Theft via violent hijackings is prevalent in the Middle East and Africa, with corruption playing a significant role. Food and beverage cargoes are the most common targets in these regions, likely due to their high demand and ease of resale. The combination of violent tactics and corruption makes cargo theft a severe issue that requires coordinated efforts to combat.

North America

In North America, there are two distinct intra-regional trends:

• In the US and Canada, cargo theft experiences similar to Europe, with a focus on unattended and unsecured vehicles.
• In Mexico and Central American countries, criminals use more violent and aggressive tactics, such as hijacking.

Food and beverage top the list of consumer products and commodities targeted in North America. The high rate of hijacking in Mexico and Central America compared to the US and Canada indicates a need for region-specific strategies to address the different methods used by criminals.

South America

South America reports the highest rate of hijacking compared to other regions, with Brazil accounting for 68% of incidents. Theft in transit accounts for over 75% of all incidents, with Tuesdays, Wednesdays, and Thursdays being the most frequently targeted days. This trend emphasizes the need for enhanced security measures during transit and on specific days of the week to prevent theft.

Importance of Cargo Tracking for Business

Approximately 90% of global trade is carried by the international shipping industry, making cargo shipping more vital than ever. Efficient logistics solutions that use technology to enhance the client experience are crucial for businesses today. Cargo tracking is essential for:

• Preventing delays and financial losses: Any delay in shipment can lead to customer dissatisfaction and significant financial losses.
• Meeting customer expectations: In today's age of globalization, customers expect timely and efficient deliveries.
• Boosting company growth: Cargo tracking systems provide a way to improve efficiency in shipment or transportation, leading to increased customer satisfaction and business growth.

With the rise of globalization, businesses rely on cargo shipping organizations to deliver shipments quickly, efficiently, and on time. An efficient logistics partner offering integrative services, including cargo tracking, is indispensable. Cargo tracking systems provide a way to boost company growth by increasing efficiency in shipment or transportation.

Benefits of Cargo Tracking

Cargo tracking technology allows shippers to control their transportation and locate shipments at any point in their journey. Track and trace features are available in an Asset Tracking and Management System, providing several benefits:

Reduce Costs and Improve Processes

Tracking freight journeys helps analyze and communicate with carriers, checking pickup times, in-transit times, and delays, allowing for cost-effective changes to improve the supply chain. By having detailed information on each stage of the shipment, companies can identify inefficiencies and areas for improvement, leading to reduced costs and streamlined processes.

Increase Visibility and Performance

Metrics related to ship movement can be easily monitored, providing visibility for outgoing shipments and enabling quick communication with customers about delays. Visibility is crucial for managing customer expectations and maintaining trust. With real-time tracking, companies can promptly address any issues that arise during transit, ensuring a smoother delivery process.

Improve Customer Experience

Approximately half of Americans pay attention to shipping as part of their overall shopping experience. The ability to track shipments provides peace of mind to end-users and allows shipping companies to notify customers of changes, status, and delivery times. This transparency enhances the customer experience, as they can stay informed about their shipments and plan accordingly.

Enhancing Security with Cargo Tracking

Cargo tracking technology also plays a vital role in enhancing security and preventing theft. By providing real-time location data and monitoring capabilities, tracking systems can help identify suspicious activities and prevent cargo theft. Here are some ways cargo tracking technology enhances security:

Real-Time Alerts and Notifications

Cargo tracking systems can send real-time alerts and notifications to shippers and logistics partners if any irregularities are detected during transit. For example, if a vehicle deviates from its planned route or if there is an unexpected stop, the system can alert the relevant parties to take immediate action. This proactive approach helps prevent theft and ensures the safety of the cargo.

Geofencing Capabilities

Geofencing technology allows shippers to set virtual boundaries for their cargo. If a shipment crosses these boundaries, the tracking system can trigger an alert. This feature is particularly useful for high-value shipments, as it enables shippers to monitor the cargo closely and respond quickly to any unauthorized movements.

Integration with Security Systems

Cargo tracking systems can be integrated with other security systems, such as CCTV cameras and access control systems, to provide comprehensive security coverage. This integration allows for better monitoring and coordination between different security measures, enhancing overall protection for the cargo.

Implementing Cargo Tracking: Best Practices

To maximize the benefits of cargo tracking technology, businesses should follow these best practices:

Choose the Right Tracking System

Selecting the appropriate cargo tracking system is crucial for effective implementation. Businesses should consider factors such as the type of cargo, transportation mode, and specific security requirements when choosing a tracking system. A tailored solution that meets the unique needs of the business will provide the best results.

Train Staff on Tracking Technology

Proper training is essential for the successful use of cargo tracking technology. Staff should be trained on how to use the tracking system, interpret data, and respond to alerts. Regular training sessions and updates will ensure that employees are well-equipped to handle the technology and maximize its benefits.

Regularly Review and Update Tracking Processes

Cargo tracking processes should be regularly reviewed and updated to ensure they remain effective and relevant. This includes analyzing tracking data to identify trends and areas for improvement, as well as staying informed about new technologies and best practices in the industry.

Conclusion

In today's technology-driven world, cloud technology has revolutionized business operations. With SaaS technology, shipping companies no longer need significant upfront investments in technology. Instead, they can pay for what they use, offering logistics solutions for shipping that build customer loyalty.

Cargo tracking technology provides real-time shipping information, improving service and acting as a superior form of customer service. It has become integral to the logistics industry, allowing businesses to monitor the condition of cargo during transport and ensuring timely and secure deliveries.

By implementing effective cargo tracking systems and adopting proactive measures, businesses can significantly reduce the risk of theft, ensuring secure and timely deliveries. Cargo tracking technology represents the information that shipping companies can use to improve service by providing real-time shipping information to their customers, which performs as a superior form of customer service today.

The businesses can monitor the condition of the cargo through cargo tracking during their transport, like when their packages leave and when they arrive at their prime location.

Frequently Asked Questions (FAQs)

What is Cargo Tracking?

‍Cargo Tracking refers to the technology that helps shipping companies control their transportation and locate shipment goods at any point in their journey, providing real-time information.

What are the types of cargo?

‍Cargo or freight refers to goods or products transported for commercial gain. They can be moved by rail, van, truck, intermodal container, sea, or air. The four types of cargo are:

• Container cargo
• Liquid bulk
• Dry bulk
• Breakbulk
• Ro-ro

Why is cargo called cargo?‍

Cargo refers to goods or products conveyed for commercial gain, moved by ground, sea, or air. The term now covers all types of freight, including goods carried by rail, van, truck, or intermodal container.

Cargo theft remains a pressing concern in the industry. However, by implementing effective cargo tracking systems and adopting proactive measures, businesses can significantly reduce the risk of theft, ensuring secure and timely deliveries.