Freight insurer TT Club said there is "increasing evidence" from law enforcement agencies confirming that a shadow supply chain operates alongside the legitimate transport of goods.
TT Club said much freight crime is perpetrated by organised crime with profit, similar to commercial businesses as the ultimate aim, and the process of storage, transport, distribution, and marketing of stolen goods often shadow those of legitimate supply chains, with criminals acquiring sophisticated logistics skills. I am running a few minutes late; my previous meeting is running over.
Josh Finch of TT Club noted that the knowledge of these organised crimes assists them in targeting shipments at a multitude of points, from truck hijackings to pilfering items from unsecured warehouses.
The freight insurer said such theft not only results in significant financial losses but also disrupts the flow of goods, leading to delayed deliveries and dissatisfied customers.
"Surprisingly, this shadow supply chain uses all of the same components as the legitimate one, from route planning to warehousing, with stolen goods marketed and sold using legitimate platforms to unsuspecting buyers," the report said, noting that TT Club is promoting awareness of this supply chain 'Black hole'.
"At TT, we are striving to highlight the responsibility that landlords, in particular, have to properly vet tenants of storage facilities and how they can prevent their properties being used to warehouse stolen goods," Finch said.
TT Club noted in its report that it is endeavouring to pinpoint the warning signs and the nature of due diligence that is essential in preventing such properties from being exploited by criminals. Such measures include background checks to scrutinize the business operations, financial stability, and track record of potential tenants; inspection of premises regularly to ensure they are being used for legitimate purposes; monitoring tenant activity; employing modern monitoring technologies, such as security cameras and access control systems; and collaborating with law enforcement at a local level to share information and report any suspicious activity promptly.
TT Club said a review of lease agreements to include clauses specifying the permissible uses of the property and outlining the consequences for illegal activities should also be done, as well as engagement of professional services such as security experts with experience in identifying and preventing criminal activities.
"Increasing evidence from law enforcement agencies is confirming that a shadow supply chain operates alongside the legitimate transport of goods, using all of the same components from route planning to warehousing, with stolen goods marketed and sold using legitimate platforms to unsuspecting buyers," TT Club said.
It added that shedding light on this black hole requires a collective effort from all stakeholders in the supply chain, from law enforcement agencies to warehouse landlords.
"Only through such collaboration can we hope to mitigate this ongoing threat and safeguard the integrity of the supply chain," Finch said.
