Ca rgo underwriters are facing significant challenges amid an uncertain economic environment, which is driving up costs for cargo owners.Mike Brews, underwriting manager at Horizon Underwriting Managers, expressed concerns about the subdued nature of the local market amidst challenging economic conditions. He noted a significant increase in cargo claims being lodged compared to previous years."In the past, clients were more inclined to absorb smaller claims into their business operations. However, with the current state of the economy, we are witnessing a shift in behaviour where clients are now more eager and willing to file claims," Brews said, highlighting this trend as a clear indicator of economic strain. "Naturally, this surge in claims has a ripple effect on premiums."Brews' observations underscore the impact of economic instability on client behaviour within the insurance sector, with businesses becoming increasingly vigilant about protecting their interests in uncertain times.He said the prevalence of hijackings and theft within the southern African cargo industry remained. "High-value cargo has always been a prime target, but we're now witnessing a concerning trend where virtually anything and everything is at risk," he explained. "The rise in unemployment rates continues to be a significant driving factor behind these theft losses."He said in addition to the operational persistence of crime syndicates, there was a growing opportunistic risk within the industry. "When a truck experiences a breakdown or stops for any reason, the risk of robbery significantly rises," he cautioned. "We have observed a definite uptick in these incidents, highlighting the heightened vulnerability of cargo during t ra n sit ."Brews told Freight Newsthere were several measures that cargo owners could take to mitigate the risk of theft and ensure the safety of their shipments. "Utilising reputable carriers, maintaining vehicles, and limiting stops to designated truck stops are crucial steps in protecting against potential risks," he advised. "Furthermore, opting for vehicles that are less exposed and implementing convoy driving practices can provide added protection for cargo during transit."By adopting these strategies, cargo owners can enhance the security of their shipments and reduce the likelihood of being targeted by thieves.Brews stressed the importance of selecting qualified truck drivers with a proven track record. "It's critical to employ drivers who come with references and a solid reputation for safe driving," he emphasised. By prioritising experienced and reputable drivers, cargo owners can minimise the risk of incidents and ensure the security of their shipments throughout the transportation process.
