Loadsure has said a spike in cargo theft over Memorial Day in the US is to be expected, even though more than 60% of cargo remains uninsured or underinsured.
According to analysis by CargoNet, part of Verisk, the average value of stolen cargo in 2021 was $172,340, a figure that does not take into account expedited replacement costs, supply chain interruption costs, or labor costs associated with attempted cargo recovery and claims filing.
Johnny McCord, CEO of Loadsure, said: “Many SMBs simply don’t recognize the extent of their exposure or the wide-ranging impacts of an unrecovered loss.
“Labor-intensive traditional underwriting processes have also priced SMBs out of coverage and represented an unprofitable proposition for brokers. AI and automation, however, render their size irrelevant. Brokers can now increase their service levels and generate new revenue streams. It’s a win-win for both industries.”
He added: “Now, with a long weekend approaching, cargo theft rates are expected to rise as crime syndicates take advantage of lighter staffing and longer lead times to fence stolen freight.
“Small businesses may be unable to sustain an unrecovered loss, and that’s been a key motivating factor at Loadsure—to ensure no business is excluded from business-critical risk management.”
