Brazil Has 6th Highest Cargo Transport Risk Rate in World

By Lise Alves, Senior Contributing Reporter

SÃO PAULO, BRAZIL – The latest survey by an UK company on the risks of cargo transportation in several countries throughout the world shows that Brazil jumped from 10th to 6th place in threat of cargo robberies in March, being only safer than war-torn countries like Syria, Libya and Southern Sudan.

The JCC Cargo Watchlist survey reported that São Paulo state is where most cargo robberies occur, 48.47 percent, while Rio registers 33.54 percent of the occurrences.

“Fresh data released by Rio de Janeiro State Industry Federation shows a record high for the state in ground cargo theft in 2016, reflecting increased professionalism of organized crime gangs involved and extent of corruption. Level of cargo theft in São Paulo state is even higher,” says the monthly survey.

Transport companies report spending up to thirteen percent of their revenues with security measures. To reduce risk, companies have adopted a series of safety measures to ensure the delivery of cargo and the integrity of drivers while on the road.

Among the measures adopted by some companies to ensure that the cargo arrives safely at its destination are extra insurance and armed escorts. According to officials food products, electronics, fuel and prescription drugs are the items most sought by these criminal groups.

“It has an impact on our business and insurance costs. We surveyed the costs of high-risk management with companies… which today amounts to 7.9 percent of revenue. If you include the [armed] escort, it can reach thirteen percent,” one of the Federation’s security advisers, Paulo Roberto de Souza, was quoted as saying to daily Diario do Grande ABC.