Report outlines threats to today’s global supply chains

In 2015, a number of cross-border issues threatened supply chains across the world, according to BSI Group’s “2015 SCREEN Global Supply Chain Intelligence Report.” This included damages caused by cargo theft worth $22.6 billion; increased number of terrorism incidents contributed to billions of dollars in losses to global shipping companies; an influx of migrants in Europe that harmed supply chain integrity across the continent; economic downturns in Argentina, Brazil and China; and issues of political transparency that drove social unrest in Africa and Central America. Extreme weather events, including many attributed to the El Nino phenomenon, caused supply chain disruptions and threatened business continuity in multiple regions. There were also several industries that were plagued by poor enforcement of labor regulations, allowing for significant rates of child or forced labor in Argentina and India, among other nations.

Nearly $23 billion was lost due to cargo theft worldwide in 2015 from a variety of supply chain threats, predominantly driven by security concerns, says BSI, also known in its home market as the British Standards Institution. South Africa experienced a 30% increase in cargo truck hijackings over the last year, with thieves using high levels of violence and switching from targeting only high-value goods to also targeting lower-value items. Daring vehicle shipment thefts have become increasingly commonplace in China, with a recent series of in-transit vehicle thefts occurring along the busy G45 highway. More sophisticated attacks were observed in India throughout 2015, where criminal gangs masterminded new techniques to steal goods without breaking customs seals in order to avoid detection—a major risk for companies participating in international supply chain security programs.