Do you have freight insurance in place for your cargo?

Is the insurance policy valid, what does it include, what does it exclude?

Freight insurance is critical for all types of goods and for all types of movements whether domestic or international.  Whether the issue be Piracy, Freight Fraud, Weather Damage, Froklift Damage, Container Detention or Complete Loss of Product; INSURANCE MATTERS.  

Recent reports show that in 2024 Worldwide Freight Fraud escalated to an all-time high.

Criminal Groups are adapting quickly, leveraging cyber tools, insider access and fake identities to target everything from food to pharmaceuticals and electronics.

Criminals are longer relying solely on force, they are now using fake documents, spoofed calls, hacked systems and even AI tools to intercept shipments.

 Food and beverages remain the most commodities stolen, followed by electronics agricultural foods and fuel.

 Most incidents occurred while goods were in transit, often through hijackings or full vehicle theft.

 AI-enabled fraud is on the rise, with cybercriminals fording documents, manipulating data and stealing identities to impersonate legitimate carriers or brokers.

The United States:

The US reports USD $35B in losses annually, with a 25% spike projected for 2025. Small carriers are often targeted through fake carrier scams and digital impersonation.

One executive at a Senate hearing, described how an entire private-label shipment was stolen and resold after criminals spoofed a trusted logistics provider.

Mexico:

In Q1 of 2025, 81% of Mexico’s cargo thefts involved violence, with attacks targeting avocados, food, beverages, auto parts and home appliance shipments. Over 60% occurred whilst trucks were in motions and primarily during daylight hours.

Germany:

Hamburg has become a magnet for organised crime, with cocaine seizures rising 750% between 2018 and 2023. Alarmingly, insiders are being bought off. A Hamburg state attorney is on trial for allegedly leaking arrest plans to traffickers for EUR 5000/month. Port workers have also been caught aiding smugglers and retaliating against colleagues who refuse to cooperate.

Experts warn the problem extends beyond the docks; to lawyers, bankers and politicians.

Australia:

In Australia, Scammers are doing what is called ABN Fraud, whereby they are using similar domain names and websites to impersonate legitimate businesses and tricking customers into paying them; by creating fake invoices and changed bank details.

Scammers are also pretending to sell shipping containers. Photos are listed on shopping website or online auction websites. Customer can select which type of container they would like to purchase. Invoices are paid by the customer, but no container is ever delivered.  The phone number listed on the invoice is an Australian number and when called is a legitimate logistics company who has no idea they have been linked to a cybercrime.

Overseas scammers are also trying to get undeclared and illegally imported cigarettes and tobacco products into Australia, by sending under legitimate importer company names and details on the bills of lading. Clearances are carried out under the legitimate company name yet the company never hears of the shipment. Documents, invoices, entries are not sent to them, they are sent to the criminals. Goods are seized and the legitimate importer receives notification in the post/mail about the situation.

South America continues to see violent hijackings, especially in Brazil.

Insider threats and sea piracy remain major concerns, with India reporting the most incidents.

In Europe, thefts often occur at unsecured parking lots and warehouses, with criminals using tech to bypass traditional security systems.

Does your insurance policy cover the above type of issues? Would you be covered?

Does your insurance policy only cover you for goods from particular countries but not others? Which countries are covered?

D&D Worldwide Logistics recommends that all shippers and consignees take out freight insurance policies for their goods before shipping; and before it is too late.

Take care,

The DDWL Team