Middle East thieves target warehouses

More than three quarters of cargo theft in the Middle East happens at warehouses.

A new report by international freight transport insurer TT Club and the supply chain services and solutions team at BSI, the business improvement and standards company identifies crime hot-spots in the region as well as where and how thefts are carried out.

The report found that warehouse thefts and supply chain corruption are the stand-outs, with a concentration on higher risk areas across the United Arab Emirates (UAE) and in the Kingdom of Saudi Arabia (KSA). The role special economic zones play in the Middle East also effects regional disparities in cargo theft.

The report, Cargo Crime in Gulf Countries and Regional Free Trade Zones, is intended as a risk mitigation tool for transport operators. It is available for download.

“Our reports are intended to alert those in the supply chain to the variable and developing trends in the risk of cargo theft during intermodal transportation,” said TT Club’s Mike Yarwood.

“Regular updates of this nature are essential as criminal gangs are constantly altering their points of attack.  The current prevalence of supply chain congestion, delays, disruption, and in the Middle East region in particular packed warehouses, makes such information critical.”

Free trade zones

Free Trade Zones (FTZ) are a significant feature of the regional economy and represent potential vulnerabilities for supply chains. The high volumes of trade they handle under simplified customs procedures can provide opportunities for criminals.

As Gulf Cooperation Council (GCC) economies return to pre-pandemic levels, and data provided by the International Road Transport Union (IRU) is projecting growth in trade, it is possible that criminals will also seek to exploit these higher volumes of cargo throughput to introduce illicit drugs and counterfeited products into shipments.

The report also offers advice on how to reduce the risk of cargo crime.  These guidelines cover avoiding the introduction of drugs into shipments; reducing theft from facilities and combating counterfeit smuggling, all of which are of particular concern in the Middle East region.

 “Operators should be consistent in their vigilance, especially in the current season of festivities when the movement of gifts is at a peak” Yarwood recommends.

“TT’s intention is to help reduce theft related loss and to that end these reports offer loss prevention advice to complement the joint analysis of current trends.  As well as financial damage these incidents can cause severe operational disruption and unquantifiable reputational damage to supply chain service providers.  As a consequence, it remains of key importance to the transport industry to identify, prevent and report any criminal activity.”