Cargo theft has been dominating headlines in recent months. As a result, logistics leaders have increased their focus on the growing prevalence of strategic theft incidents. Rampant – and often overlooked – hijacking across Mexico are another key piece of the North American cargo fraud puzzle, however.
There were 6,030 reported hijackings in Mexico between January 2023 and September 2023, according to a new data portal launched by Borderless Coverage Powered by Reliance Partners This number represents an 8% increase over the same period in 2022, representing a growing concern for shippers, carriers and individual drivers operating in the country.
While the rising number of hijackings in Mexico is alarming, it is not surprising that many North American logistics leaders are not aware of the severity of the issue. Despite often being more dangerous in nature, cargo-related crimes in Mexico receive a fraction of the attention that is afforded to similar issues happening in the U.S. and Canada.
In fact, The Mexican Cargo Hijacking Data Portal is the first and only open data source portal dedicated to highlighting this issue. Borderless Coverage produces the database by compiling and consolidating information from Mexico’s National Public Security System.
“Cargo truck hijackings are a major risk affecting companies moving goods through Mexico and from central Mexico into the U.S,” Reliance Partners reported in its key findings.
Companies should be keenly aware of this risk as the trend toward nearshoring continues to grow, causing a significant increase in the already substantial amount of cargo that moves from Mexico to the U.S. on a daily basis.
By analyzing the data they collected, Borderless Coverage was able to pinpoint where the majority of hijackings take place. The duo found that most incidents are concentrated around Mexico City, with over 85% of recent hijackings happening in Estado de Mexico, Puebla or Michoacán.
Understanding this geographical data is critical because it empowers companies to ramp up their security efforts in the right places.
Historically, logistics companies have contracted the bulk of their cross-border security efforts to areas within close proximity to the Mexico-U.S. border. These methods appear to have been successful, as only about 1% of truck hijacking occurred in border states in the first nine months of 2023. Now, however, it is time for companies to focus some of their attention deeper into Mexico in order to protect both shipments and truck drivers along their entire journeys.
The first place logistics companies – including brokerages, freight forwarding companies and carriers – should turn is their insurance companies.
“When crossing borders, many organizations do not understand that insurance law, standards, and enforceability change,” according to the Borderless Coverage website. “Oftentimes, shippers will take on the full responsibility of their cargo when it is moved into Mexico without knowing it.”
Borderless Coverage works with companies operating in Mexico, the U.S. and/or Canada to create cross-border insurance plans that works to protect valuable cargo while still affording companies the flexibility they need to operate in these vastly different environments.
Click here to learn more about Reliance Partners and Borderless Coverage.