ECONOMICS

What is Cargo Security?



Current situation

Cargo theft has been an issue since many decades. The attacks entail robbers assaulting the merchants to pirates seizing the ships. Since the advent or implementation of the cargo transportation method, crimes have been on a rise. The bandits of today are organized as an international crime syndicate (Possamai, 2002).

Cargo theft has been affecting businesses as well as the consumers of today. Since globalization has taken over rapidly, manufacturing of product takes place in one country and it is sold in another country. Cargo is stolen from any point amidst the number of countries involved in the manufacturing, shipping, warehousing and consumption.

In USA it is estimated that nearly $30 billion of cargo is stolen on a yearly basis. The thieves are said to be recruited from USA and then trained by the Cubans and then later they are sent to Florida for the establishment of operations. Cargo stolen from USA is exported to ports of Costa Rica, Paraguay, Dominican Republic, Venezuela, Argentina as well as Colombia (Ritter, 2006).

In the USA, most the shipments include pharmaceuticals, food, electronic appliances as well as apparel. As soon as demand for a certain commodity rises they are reported as being stolen the most. Thieves tend to be updated on the demand and supply list of products and steal accordingly. Currently due to economic crisis, food as well as water has shown an increase in theft (Bowersox, 2002).

While transportation of the goods takes place it is most likely that they will be held liable as well as will have to pay for the stolen products. Regardless of the company's insurance status it won't cover the loss because of deductible policy. If Transportation Company reports a theft it may end up with increased insurance premium in the following year, the ...