Cargo theft is a multi-billion dollars industry in the United States, causing a business to incur hefty losses. More than just stealing the merchandise, cargo theft has far-reaching effects on your business and can prove ruinous.
Unless it’s empty, the 80,000-pound monster rolling down the highway carries cargo worth hundreds of thousands of dollars. For you, the business owner, that might signal the conclusion of yet another successful deal after months of hard work.
To a cargo thief, such trucks represent a quick payday if they can get a hold of the cargo and sell it in the black market. The worst bit is that there are lots unscrupulous buyers eagerly waiting for such booty, creating an immense demand. Law enforcement agencies put cargo theft at between $15 and $30 billion a year.
A Loss of Business Capital
The average value of cargo theft incidents hovers over the quarter of a million dollars mark, making it a handsome payday for the perpetrators. Due to their high demand, food and beverage are the most sought-after commodities, with electronics coming in second. Losing an entire shipment in a commercial big-rig can deal a deadly blow your business’s financial health.
As the client is yet to take receipt of the good, they’re technically under your care, making it your problem. You can prevent the worst from happening by seeking the help of security services such as Law Enforcement Specialists, Inc. Still, if you’re not insured, you will have to grit your teeth and absorb the loss. If your cash flow is not steady enough to handle such a loss, you might be staring at financial ruin.
Losing a shipment can destroy your business reputation and make you lose most of your clients. Trust is a crucial ingredient in the business world, and once you break it, it can be tough to win it back. While the circumstances that lead you not to live up to your promise might be extenuating, all your clients see is the letdown. For instance, if you were to supply a catering company with beverages for a wedding ceremony, you would cause them great distress.
They are on the hook for ruining one of life’s special days for their client. You will not only cost them a client but also open them up to possible lawsuits. Worse still, the stolen products might flood the market at below-the-market rates, watering down your brand. You have no control over the product, which will get to the market illegally, and as such, the criminals can tamper, alter, or even water down the quality of the product.
Spiking Business Costs
In most cases, cargo theft is covered by the insurance company, but that doesn’t get you off the hook. While your insurer will help you cover the loss, they must get their pound of flesh. You will have to pay a deductible, and your insurance premiums are likely to be raised the following year after making a claim.
Cargo theft remains a grave concern for many businesses as they inflict massive financial damages on them. Considered a lesser crime compared to other forms of robbery, cargo theft carries a lighter sentence, making it more attractive to criminals. Instead of taking chances with your finances and brand reputation, you’re better off making every effort to secure all shipments while in transit.