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According to Overhaul’s Intelligence Center, the Southeast Region Accounts for 91% of Food and Beverage Theft Incidents in the Country
Supply chains can experience various sources of disruption, from international – such as inflation levels in major world economies, wars, energy crises, and internal politics of other countries – to national.
Brazil faces several factors, but mainly because it is a continental country, we can especially cite the insufficiency of security levels on the roads, which results in cargo thefts. As a consequence of poor management, there is a reduction in the supply of services, products, raw materials, components, transportation options, storage availability, among other restrictions.
According to the study from Overhaul’s Intelligence Center, Overhaul, “Brazil: Quarterly Cargo Theft Report”, in the second quarter of 2023, Mixed Cargo, that is, different types of cargo being transported together, was the most targeted with 44% of the events. Following that, Food and Beverages (18%), Cigarettes (11%), Electronics (7%), and Agriculture (6%).
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According to the report, food and beverage cargo thefts were concentrated in the Southeast, accounting for 91% of incidents. Of these, 75% occurred in the State of Rio de Janeiro – the cities of Duque de Caxias, São João do Meriti, and the city of Rio de Janeiro were responsible for 67%. Mixed cargo consisting of various types of food and beverages were the most stolen. Analyzing products individually, meat cargo was the most targeted (10%). In relation to general occurrences (all types of products), the Southeast is still responsible for the majority, with 76%.
However, there is a socioeconomic explanation, addressed by the PNAD 2012-2022 survey (National Household Sample Survey) from IBGE (Brazilian Institute of Geography and Statistics): among the 10% poorest, 64% are not fully employed, that is, they work informally, despite seeking entry into the job market. In light of this, there arises a need for more accessible alternatives and changes in habits, resulting in the increase of the informal market that provides this segment of the population with basic survival items. Thus, gangs and organized crime find opportunities to supply this informal market with stolen cargo, selling it at untaxed prices, but with high profit margins.
Solutions
According to Overhaul’s Intelligence Center, “shipments in Brazil are at serious risk of cargo theft,” and recommends the inclusion of specialized risk management professionals in the supply chain, responsible for planning these trips – with this involvement, freight companies can make a difference in combating cargo crime. The development of proactive planning and organization methods for transportation operations, along with the enhancement of technology use for statistical analyses that allow for making predictions and, thus, increasing the efficiency of preventive practices, are essential to change this reality in Brazil and Overhaul provides software for risk management and visibility, as well as technology to assist in safe transportation.
The study also highlights solutions such as choosing routes with safe stopping points, with customized tracking technology configurations for shipments, as well as the employment of multiple layers of protection that need to be strategically identified and employed for each operation.
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