TAPA members’ losses three times lower than industry average

security

Loss ratios suffered by non-TAPA members are nearly three times higher than the average experienced by TAPA members, according to the TAPA 2010 Financial Benchmark.

By analysing the TAPA database, a comparative non-TAPA member loss ratio of 0.06% was identified for 2010, comparable to the 2001-2002 levels within TAPA. The Financial Benchmark reported a worldwide loss ratio for TAPA members of 0.01683%. Looking at individual sectors, hi-tech losses represented a ratio of 0.02108% while the level for the pharmaceutical sector was 0.00613%.

The TAPA Financial Benchmark was initiated in 2001 as a means for members to compare losses across the TAPA membership. The survey collects both qualitative and quantitative data points from members on loss specifics from the past year and the ‘TAPA loss ratio’ compares total value shipped to total value stolen in-transit.

The 2010 survey was sent to all members in EMEA and the Americas. After non-shipper responses were excluded, the Benchmark studied the data of 13 companies; 11 Hi-tech manufacturers and two pharmaceutical companies.

Worldwide Value Loss Comparison

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Total revenue captured for the Benchmark participants, excluding service revenue, was US$267 billion while total reported losses were $44 million.

Looking at the most problematic countries for cargo crime, the report identified countries with three degrees of risk:

SEVERE

  • Brazil
  • Mexico
  • Italy
  • Germany
  • South Africa

MODERATE

  • United States
  • United Kingdom
  • The Netherlands
  • India
  • Nigeria

MINOR

  • Argentina
  • Venezuela
  • France
  • Hungary
  • China
  • Malaysia

Most problematic airports include Amsterdam, Budapest, Chennai, Chicago, Dallas/Fort Worth, Frankfurt, Hong Kong, Johannesburg, Kuala Lumpur, Lagos, London, Miami, Philadelphia, Sao Paulo and Shanghai.

Most problematic seaports were Amsterdam, Hamburg, Miami, Rotterdam and Southampton.

How can you use this ratio?

You can compare your company’s losses to the average TAPA company and support security ROI models.

Calculating your loss ratio:

Total Value of Losses (retail value)

Total Revenue (exclude service revenue)

Thorsten Neumann, Chairman of TAPA EMEA, said: “The results of the 2010 Financial Benchmark reinforce what we believe; that membership of TAPA is the most effective way to protect high value, high risk goods in-transit and to combat cargo crime. The onus is on all of our manufacturing members to ensure we participate in the 2011 Financial Benchmark because the more companies that take time to support this initiative, the more valuable the intelligence becomes.

I wish to take this opportunity to thank the 13 companies that took part in the latest survey for their outstanding commitment to our Association and hope that many more companies will follow their example when participants are sought next time.”