Don’t be fooled by the term high value any more. In a world hard hit by a global pandemic, economic uncertainty and rising inf lation, it no longer refers only to the likes of unique pieces of art, fine jewellery, electronics, pharmaceuticals or luxury apparel.These days almost anything is at risk, including tyres, alcohol, cigarettes and many other products. Even infant nappies are a commodity that is highly sought after on the black market.With this broader definition now at play, shippers and cargo owners are best advised to ensure they are up-to-date with policies in terms of what is considered a valuable shipment, and what is required in the movement of it.“Business is booming, and if you look at the classification “valuable/vulnerable” cargo, this term is no longer applicable,” says Martin Taylor, national risk manager at Rhenus Logistics South Africa. “Everything is becoming valuable or vulnerable cargo. And ultimately almost everything being transported will need to be escorted. Those who can afford it will do it, rather than risk losing imported stock from overseas and waiting two to three months to get stock in again. Historically, escorts were required for cargoes of R2 million or more. These days escorts are often required for cargoes of just R250 000.”Mike Brews, director at Horizon Underwriting Managers, said that with more cargo nowadays considered valuable, volumes of high-risk cargo had increased.“At this time of year, there is also generally an increase in criminal activity as there is a lot of high-value cargo moving across the country for the Christmas rush.”He said in recent years crime had also steadily been increasing and higher losses had been recorded.“Shippers must be adequately insured,” said Brews. “They must also make sure they are covering all the requirements for cargo that is of higher value.”He said on large volumes of high-value cargo insurance companies were now insisting on armed escorts for vehicles. There are also certain warranties that these escorts need to apply.“Our advice is also to not just insure goods for the invoice value but take into consideration all the added-on costs such as shipping, transport and duties because if an incident should occur it would mean that a substantial chunk of the cost was not insured.”Brews said it was imperative to understand what the risks were and to actively mitigate against them. “This includes using reputable transporters and service providers, and taking into account the value of your cargo and what other requirements are necessary – like an armed escort or satellite track ing.”He said another important aspect was to ensure that equipment was always in proper working condition. “If we require tracking and it is found that the system in the truck was not on or not working, for example, the entire claim will be dismissed. The same goes for escorts. If it is a condition it must be adhered to at all times.”With more and more cargo being considered high value and more incidents of crime, it was becoming more common practice to have vehicles escorted, he added.“Crimes involving high-value cargo are not opportunity driven. These are syndicates involving criminals that are well-funded, armed to the teeth, and very organised. It is essential to take as many precautions as possible to safeguard one’s cargo.”
