Port Theft Rises 38%! Unprotected Logistics Businesses in Danger

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2024 will be a challenging year for Indonesia’s logistics industry. Data from the Ministry of Transportation and the National Logistics Association shows that theft cases in Indonesia’s main ports increased by 38% compared to the previous year. This spike is not just a statistic, but a real alarm for logistics businesses, goods owners, and shipping companies.

Theft cases are no longer limited to petty pickpocketing at docks, but have expanded to include container break-ins, shipping document manipulation, and even armed robbery syndicates. As a result, the national logistics industry suffers losses reaching hundreds of billions of rupiah annually.

This situation serves as a reminder that in the logistics business, risks can come from anywhere—whether at sea, on land, or in ports. Therefore, having financial protection such as cargo insurance is no longer an option, but an absolute necessity.

This article will explore the surge in port theft, its impact on logistics companies’ financial losses, and the role of professional insurance brokers in mitigating this risk. You’ll understand why freight insurance is your business’s last line of defense. However, before risk hits your business, ensure your assets and cargo are properly protected. Therefore, Contact L&G Insurance Broker now at 08118507773 for free consultation and the best protection recommendations for your business.

Latest Facts and Data on Port Theft

According to Ministry of Transportation data and several national media reports, a significant increase in theft cases has been recorded at major ports such as Tanjung Priok (Jakarta), Tanjung Perak (Surabaya), and Belawan (Medan). Some of the most common modus operandi include:

Container break-ins in the terminal area during the loading and unloading process or when stored in the Container Yard (CY).
Diversion of cargo using fake documents or manipulation of Customs Clearance data.
Collusion between port workers and outside parties (Insider Theft) who know the schedule of high-value cargo.
Theft of heavy equipment, spare parts, electronics, or commodities (High Value Cargo) directly from inside the container.
Manipulation of container seals (tampering) while in transit to the receiving warehouse.

According to the Indonesian Logistics Association (ALI), total losses due to theft at ports reached Rp 480 billion in 2024, up from Rp 347 billion the previous year. The most frequently targeted items are heavy equipment, electronics, vehicles, and industrial spare parts, all of which are high-value and easily resold on the black market.

This is where freight insurance plays a vital role. This policy is designed to provide financial compensation for losses resulting from theft, loss, or damage during the shipping process. This significantly minimizes the financial risk to logistics companies.

The Financial Impact of Chains on Logistics Companies

For a logistics company, a single theft incident can be financially devastating. The losses include not only the loss of goods but also the loss of reputation and customer trust.

Let’s take a real-life example. In late 2024, a shipping company in Tanjung Priok lost 20 containers containing heavy equipment spare parts worth Rp 18 billion. The theft occurred in the port parking area, where the trucks had left the containers overnight. Investigations revealed collusion between external and internal parties.

Direct Loss: Cargo value of Rp. 18 billion was lost.
Indirect Losses: Loss of two major contracts with multinational clients (reputational impact).
Legal Costs: Costs of investigation and claims for damages from the owner of the goods.

Unfortunately, the company did not have active marine cargo insurance. As a result, they had to bear the full cost of the losses and even lost two major contracts. Meanwhile, other companies with marine cargo insurance policies received full compensation for the value of their goods, and their business operations continued without major disruption. The lesson from this case is clear: without insurance coverage, a single incident can destroy a logistics business built over years.

Why the Risk of Theft at Ports is Increasing

This increased risk didn’t just happen. Several key factors exacerbated the security situation at the port:

International Cargo Volume Surge: Since 2022, cargo volume at major Indonesian ports has increased by 25%. The denser the flow of goods, the greater the opportunity for theft.
Port Security Systems Are Not Yet Uniform: Not all ports have adequate CCTV systems, GPS tracking, or digital access control, leaving logistics businesses vulnerable.
Weaknesses in Distribution Chain Supervision: Many companies only insure goods until the port of destination, without taking into account the risks during the journey to the recipient’s warehouse (Last Mile Risk).
Lack of Awareness of Logistics Risks: Many industry players still consider cargo insurance to be just a formality, even though it is actually the main savior when disaster strikes.
Port Computer Network Vulnerabilities: Cyber attacks (ransomware) can cripple port systems, opening up a huge loophole for syndicates to manipulate shipping data and steal cargo.

The Strategic Role of Cargo Insurance in Risk Mitigation

Cargo insurance, or goods transportation insurance, provides financial security in the event of theft, loss, or damage during the shipment of goods by land, sea, or air. Some common types of coverage include:

All Risk Coverage (ICC A): Covers almost all types of losses, including theft, except those excluded (congenital defects, war). This is the recommended policy for high-value cargo.
Total Loss Only (TLO): Covers only the total loss of the ship or container.
War and Strike Risk (WSRCC): Additional protection against the risks of war, strikes, civil unrest and terrorism which may result in theft or damage to goods.

By having marine cargo insurance, every party involved in the supply chain—from the goods owner, the shipping company, to the recipient—will be protected from significant losses. Marine cargo insurance also helps maintain a company’s financial stability by transferring risk to the insurer. This is the most effective risk mitigation strategy in the modern logistics industry.

Real Case Study: Container Theft in Tanjung Priok

One case that went viral was a container theft at Tanjung Priok Port in March 2024. A truck carrying a container containing electronic components worth Rp 12.7 billion was hijacked while passing through the Marunda area. The goods never reached their intended warehouse.

The client, who had a cargo insurance policy with all-risk coverage, immediately reported the incident. After an investigation and document verification (assisted by an insurance broker), the insurance company paid the full claim within 30 days. In contrast, another company without similar coverage lost the entire value of its goods and experienced a serious financial crisis. This case demonstrates the stark difference between a protected and an unprotected logistics business. In the uncertain world of logistics, freight insurance is both the first and last line of defense.

Advantages of Using Insurance Broker Services

Many entrepreneurs still hesitate to purchase insurance due to the complexity of policies and technical terms. This is where L&G Insurance Broker, a trusted insurance broker located in South Tangerang, comes in. As an independent broker, L&G Insurance Broker helps you:

Analyze the risks and needs of a specific logistics business (tailor-made coverage).
Choose the best cargo insurance products from various well-known insurance companies in Indonesia and internationally.
Negotiate the most competitive premiums with maximum coverage (including extended port theft risk).
Accompanying the claims process until completion, ensuring timely payment and according to the actual loss value.
Providing Loss Prevention Strategy: Advice on packing standards, warehouse security, and safe shipping routes.

With over 30 years of experience in the commercial insurance industry, L&G understands the complexities of the Indonesian logistics chain. Therefore, before risk hits your business, secure your shipments with the right protection. Contact L&G Insurance Broker now on 08118507773 for a free consultation and recommendations for the best protection for your business.

Insurance Protection Recommendations for the Logistics Industry

Based on the risk characteristics at ports and shipping routes, the following are ideal protection recommendations:

Marine Cargo Insurance (MCI) with Warehouse-to-Warehouse Coverage: This is mandatory to ensure that goods remain protected from the shipper’s warehouse to the recipient’s warehouse, closing the risk of theft during transit at the port.
All Risk Policy Option (ICC A): Mandatory for high value cargo to cover loss due to theft, bad weather, or vehicle accidents.
Strike, Riots, and Civil Commotion (SRCC) Expansion: Important to cover the risk of theft or damage arising from riots at ports or logistics routes.
Theft, Pilferage, and Non-Delivery (TPND) Extension: A specific clause that explicitly covers loss due to theft and pilferage.
Liability Insurance: For logistics companies and Freight Forwarders, Liability insurance protects against lawsuits resulting from delivery delays or service failures caused by theft.

With the right combination of policies, risks can be transferred and logistics operations run more safely and efficiently.

Logistics Security Trends 2025 and the Role of Brokers

Entering 2025, port security and logistics trends will shift toward digitalization and automation. Some key trends to anticipate include:

Smart Port Security: Implementation of AI sensors and analytics to detect suspicious movements and reduce the risk of theft.
Blockchain Tracking: A digital record-keeping system that prevents forgery of shipping documents and increases supply chain transparency.
Mandatory Cargo Insurance: A number of large import-export companies are starting to require insurance for all cross-border shipments, making the policy a contractual requirement.

With this trend, the role of insurance brokers like L&G Insurance Broker will become increasingly important—not only as protection providers but also as strategic risk management partners in navigating the complex changes in the logistics industry. Brokers help logistics businesses adapt to new regulations and ensure insurance systems are integrated with digital security systems.

Conclusion

The 38% increase in port theft cases demonstrates that Indonesia’s logistics sector still faces serious challenges in security and asset protection. Every entrepreneur, freight forwarder, and goods owner must recognize that risk is inevitable—but it can be managed with the right financial protection.

Without cargo insurance, every shipment is a huge gamble. A single incident could wipe out years of profits and damage your logistics business’s reputation with international clients.

Therefore, ensure every shipment you make has adequate financial protection. L&G Insurance Broker is ready to be your trusted partner in South Tangerang and throughout Indonesia, protecting your assets from the risk of theft and loss.

Contact L&G Insurance Broker now on 08118507773 For a free consultation before risk strikes. L&G Insurance Broker – A trusted protection partner for logistics businesses and the freight industry throughout Indonesia.

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