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cargo theft you might think it's not
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your problem but it affects everyone
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from rising insurance premiums to higher
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prices on everyday goods the impact of
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cargo theft is farreaching and costly in
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recent years cargo theft has become a
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significant issue especially during
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holiday weekends between 2019 and 2023
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Memorial Day weekend alone saw an
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average of 29 cargo theft incidents per
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year in the United States these thefts
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aren't smallcale operations we're
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talking about millions of dollars worth
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of goods stolen in single incidents like
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$4 million in pharmaceuticals taken in
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Florida or $1 million in electronics
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swiped in Georgia certain areas are
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particularly vulnerable to these thefts
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california and Texas stand out as
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high-risisk zones with California
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reporting 43 thefts over 5 years just
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during Memorial Day weekend thieves tend
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to target easily sellable items like
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food and drinks electronics and
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household goods now add tariffs to this
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already complex situation when import
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fees increase on certain goods their
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skyrockets this makes high-V value
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shipments even more attractive to
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thieves imagine a company rushing to
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increase its stock before a new tariff
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deadline warehouses are full shipments
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are larger and schedules are tight these
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circumstances create vulnerabilities
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that thieves can exploit as theft
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incidents rise insurance companies
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respond by either raising premiums or
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tightening their requirements this isn't
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a hypothetical scenario it's happening
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now businesses are already facing higher
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commercial insurance premiums especially
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in high-risisk areas or for certain
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types of goods consider a small food
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distribution company with five trucks on
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the road a new tariff increases the
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wholesale cost of beverages making each
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load significantly more valuable if a
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theft occurs and the company didn't
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follow all the insurance requirements
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they could be left to cover the entire
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loss or think about a logistics manager
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handling electronic shipments new
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tariffs push load values to record highs
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attracting organized crime even with
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strong security measures rising premium
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costs can eat into already thin profit
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margins so what can businesses do
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experts recommend strengthening security
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measures from GPS tracking to robust
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warehouse protocols it's crucial to vet
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every carrier thoroughly and to make
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sure to log drivers and vehicle
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information these small changes can
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significantly reduce theft incidents and
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lead to better insurance rates in the
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long run you might wonder why you should
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care about this if you're not running a
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business the reality is that the costs
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of theft and increased insurance
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premiums are distributed across the
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entire supply chain businesses often
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raise prices to compensate for these
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losses which means consumers end up
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paying more for groceries electronics
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and other everyday items in conclusion
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the combination of new tariffs and
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rising cargo theft is creating a perfect
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storm for businesses insurers and
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consumers alike while the situation is
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challenging proactive measures can help
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mitigate risks it's crucial for
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businesses to implement strong security
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strategies and maintain comprehensive
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insurance policies remember cargo theft
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doesn't just affect big corporations its
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impact ripples through the entire
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economic system potentially affecting
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the prices we all pay for goods and
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services that's it for now thank you for
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watching insurance news with us and we
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