Counting the cost of security

Issue 3 2021 News & Events, Transport (Industry), Logistics (Industry)

An unprecedented surge in international freight rates of up to 700% is putting many companies under enormous pressure and forcing them to take drastic measures to ensure their sustainability. In some cases, organisations are left with little choice but to find areas where they can cut costs when moving cargo.

With South Africa’s soaring crime rate, this approach could have dangerous and unintended consequences. As a result, service provider Rhenus Logistics South Africa is constantly looking at ways to minimise threats and ensure the integrity of its customers’ shipments, while reducing costs.

The number of reported truck hijackings in South Africa has escalated over the past year by an alarming 32%. According to the Statista Research Department, 1202 truck hijackings occurred between April 2019 and March 2020, often ending with violent attacks on drivers. With the sharp increase in online 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.

Martin Taylor, risk manager at Rhenus Logistics South Africa.

“Criminals have become much more brazen in their approach. The industry is now experiencing far more orchestrated heists, with groups of up to 25 criminals 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 the 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 ongoing 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,” emphasises 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 ongoing 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% of the value of goods.

Stead goes on to highlight the consequences of inadequate security. “Theft 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 staff members and the public that needs to be ensured at all times.” In Stead’s opinion, it is important for cargo owners to carefully consider areas of risk mitigation, to optimise these expenses.

“Security awareness and agile, proactive risk management is 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,” Stead explains. “This will minimise risk and help them build more secure and resilient supply chains.”

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