In the face of an unprecedented surge in international freight rates of up to 700 percent, many companies are looking for areas to cut costs with some targeting expenses on cargo security for possible cost savings. However, with South Africa’s soaring crime rate, this approach could have dangerous and unintended consequences warns Rhenus Logistics South Africa.
The number of reported truck hijackings in South Africa has escalated over the past year by an alarming 32 percent. According to Statista Research Department, 1 202 truck hijackings occurred between April 2019 and March 2020, often ending with violent attacks on drivers.
With the sharp increase in on-line shopping as a result of COVID-19, courier vehicles are now increasingly being targeted too. Heightened activity by organised syndicates, as well as opportunistic incidents are a reality.
“Criminals have become much more brazen in their approach. The industry is now experiencing far more orchestrated heists, with groups of up to 25 robbers going after one delivery vehicle,” says Martin Taylor, Risk Manager at Rhenus Logistics South Africa, in a recent interview with television programme Carte Blanche.
“It has become a strategy of ‘shoot first, steal later’, which means that cargo drivers are now more at risk than ever. Although high-value goods are most sought-after, all cargo is at risk which means that all deliveries are vulnerable.”
Rhenus Logistics South Africa follows state-of-the-art security protocols, including on-going anti-hijacking training for drivers, as well as vehicle tracking and on-board video surveillance that is monitored 24/7 by highly trained control room personnel.
“Cargo crime is not only going to continue but will increase,” says Taylor. “Law enforcement bodies, including the crime intelligence unit of the South African Police Service, have expanded their operations and are doing what they can but they don’t have the capacity to fight crime by themselves. It needs to be a collective effort involving all stakeholders, including the public. The logistics and security industries are collaborating and sharing information and resources in efforts to combat on-going crime.”
In a financially constrained environment, it is understandable that importers will look for various ways to reduce costs and the temptation to cut on security can be great. According to Rob Stead, Chief Operating Officer at Rhenus Logistics South Africa, the cost of security in the supply chain can be as much as 11 percent of the value of goods.
Stead goes on to highlight the consequences of inadequate security. “Theft not only results in lost sales but also has the potential for reputational damage should an importer‘s brand be associated with a public incident. And of course, our biggest concern is for the safety of our staff members and the public.”
In Stead’s opinion, it is important for cargo owners to carefully consider areas of risk mitigation so as to optimise these expenses.
“Security awareness and agile, proactive risk management are essential. Importers needing to have their goods transported should partner with companies that have highly-developed security protocols and systems in place, such as 24/7 camera surveillance. This will minimise risk and help them build more secure and resilient supply chains,” he says, adding that thekey to successful risk management is vigilance and agility in adapting cargo handling processes.
“With our many years of experience and our global footprint, we are well-equipped to stay one step ahead in the fight against crime. It’s an on-going process as syndicates become more and more sophisticated – so we need to constantly evaluate developments and stay ahead of the criminals,” concludes Stead.