TT Club & BSI Consulting call for enhanced security measures as Mexican cargo theft surges

Leading global transport and logistics insurer, TT Club, and strategic supply chain risk adviser, BSI Consulting, have issued a stark warning to authorities and industry, following the release of their report into freight crime in Mexico. Urgent, coordinated action is needed to counter the growing threat of cargo theft in Mexico.

Analysis of data from TT Club members reveals a dramatic recent increase in freight crime. Theft claims in 2022 and 2023 have more than doubled compared to the previous five-year average, while hijackings have nearly tripled. The findings indicate critical vulnerabilities in the Mexican logistics ecosystem and highlight how rising theft rates are disrupting operations and exposing businesses to spiralling losses.

Surge in Mexico’s road haulage thefts

Despite existing security protocols, trucks remain especially prone to theft, with many incidents targeting road haulage in transit, rather than warehouses or rail. Areas in and around Mexico City are identified as hotspots, requiring urgent attention from authorities and logistics operators alike. Notably, violent tactics are used in over 70% of recorded cases, compounding the personal risk faced by drivers and worsening existing labour shortages.

A pain point for Asian freight forwarders

TT Club Members in Asia, particularly China, have felt this rise in theft incidents particularly keenly.

Edgar Wong, Shanghai Representative at TT Club reports:

“Speaking to our members, it’s clear how concerned they are about the risks of cargo theft in Mexico. Conversations around how to reduce these risks are coming up almost every week. The industry in Asia - and especially here in China - is placing increasing focus on finding effective ways to mitigate these threats and ensure their customers’ cargo arrives safely”.

TT Club’s MD of Loss Prevention, Mike Yarwood added:

“Our findings make it clear that only close cooperation between businesses and authorities will effectively safeguard people, cargo, and commercial interests against these escalating threats”.

Strategic risk mitigation measures

Recommendations for mitigation include deploying advanced GPS tracking with frequent updates, enhancing contractual protection with clear force majeure clauses, and advocating for comprehensive first-party cargo insurance to mitigate financial exposures due to theft. These preventative strategies aim to fortify supply chain contingencies and assure traders of their cargo’s safety.

Jim Yarbrough, Global Supply Chain Solutions Director, from BSI Consulting added:

“TT Club and BSI Consulting are committed to pioneering strategic frameworks and implementing best practices industry-wide. This comprehensive report is a wake-up call to galvanize stakeholders towards adopting preventive measures and reinforcing supply chain integrity against increasingly sophisticated freight crime tactics.”

Additional recommendations for immediate mitigation:

Widespread adoption of advanced GPS technology with real-time tracking and rapid response protocols
Clearer, more robust contractual terms to address force majeure
Broader access to first-party cargo insurance that absorbs the mounting costs of loss and disruption

For more information, access the full report below.