Freight crime costs to hit £6bn in the next 25 years

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CURTAIN SLASH DHL 16112022 SOUTH YORKS lorry

Criminals have increasingly been targeting lorries carrying expensive goods such as alcohol and tobacco

Freight crime is expected to cost the UK logistics industry a whopping £6.1bn by 2049.

Cargo thefts are causing “alarming” costs to industry, according to research by Snap, the logistics digital platform and security solutions provider to the haulage industry.

Consumer goods and fuel theft from lorries has been on the increase in recent years, with criminals taking advantage of inflation to target goods like alcohol and tobacco.

Freight crime costs the UK economy around £250 million annually, according to the Road Haulage Association. In 2023, the estimated cost to the economy exceeded £420m.

As per the National Freight and Cargo Crime Analysis yearly report, the number of reports of HGV and cargo crime in 2023 was 5,373 - with actual figures likely to be much higher.

This equated to a loss of £68.3m wholesale value in stolen goods, but the authotrities put that figure at an estimated true retail value of between £680-£700m.

Snap’s calculations, which are based on RHA estimates, show the total cost to the industry could even go up to £7.9bn over the next 25 years when taking rising inflation into account.

Freight crime is also a growing concern for ministers, with the All-Party Parliamentary Group on Freight and Logistics expected to release a roadmap for government on the steps needed to tackle the problem next month.

The ‘Securing Our Supply Chains: How the Government can crack down on freight crime’ report is due to be released on 19 November.

Freight crime offences in 2023 were responsible for the loss

“There is a growing community of professionalised criminals who see freight crime as a high-risk, low-reward activity, with the law treating theft from lorries in the same manner as opportunistic theft from a car,” a spokesperson said.

“The true cost of freight crime is not just the value of goods stolen – it has immediate knock-on effects on the freight and logistics industry and wider economy, affecting companies’ viability, staff retention, and general investment in the UK.”

The Conservative government approved a £16m funding package last year to strengthen security at truck stops across the UK after growing pleas from industry.

But many argue more investment is needed to protect lorry drivers from criminals.

Matthew Bellamy, managing director at Snap, said: “There is an urgent need for investments in the safety and security of truck parks across the UK and Europe. Truck drivers are the lifeblood of our economies and ensure that the public gets what they need.

“We need to encourage more people into the industry by offering a safe and secure environment for all.

“This highlights the need to protect drivers’ wellbeing, keeping them physically and mentally safe, alongside the financial benefits for supply chain operators and improved services for the nation.”