Cargo theft remains a significant challenge in Latin America, driven by organised crime groups targeting supply chains. These groups employ sophisticated tactics including fake checkpoints and identity substitution; and high levels of corruption and collusion within the supply chain contribute to the problem.
The region faces unique challenges in cargo security due to its vast and varied geography which makes monitoring and securing cargo routes difficult. Poor road conditions, limited secure parking and insufficient lighting exacerbate the issue.
There are a range of causes of cargo theft which include route detours and unauthorised stops; unauthorised door openings and fake checkpoints; human factors such as collusion and corruption; and inadequate application of security technology.
Cargo theft significantly impacts various industries, with food & beverage, electronics, pharmaceuticals, and parcel services being the most affected. This has led to direct annual losses in the region of around USD 5.5 billion and a rise in insurance premiums. Additionally, companies are having to invest heavily in security measures. The non-financial impact includes disrupted supply chains, reputational damage and further challenges to international trade.
Latin America faces several security challenges which include a lack of coordination among law enforcement agencies and gaps in cross-border communication. Additionally, resources within the judicial system are limited and the system suffers from complexities and corruption risks. Outsourcing carrier services also brings its own challenges.
Despite these challenges, it is gratifying to see a growing adoption of a number of security technologies such as GPS tracking (high adoption), electronic locks & sensors (medium-low adoption), real-time monitoring (medium adoption), and smart containers (low adoption).
To combat cargo theft, both short-term and long-term solutions are necessary:
- Short-Term Solutions: Implementing risk assessments, optimising routes based on real-time data, using armed escorts in high-risk areas, and enhancing driver authentication protocols.
- Long-Term Solutions: Developing public-private security partnerships, establishing regional intelligence-sharing networks, improving infrastructure, and standardising security technologies.
Addressing cargo theft in Latin America requires a comprehensive approach that combines immediate tactical measures with long-term strategic initiatives. By enhancing coordination, implementing risk management programmes, adopting advanced technologies, and improving infrastructure, the region can better protect its supply chains and mitigate the economic impact of cargo theft.
