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Is security still losing out to price? Choosing a haulier and the risk of cargo theft

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For years, freight buyers have treated price as a decisive factor when choosing a carrier. That is understandable in a cost-pressured market. But when the lowest quote takes precedence over proven security practices, a small saving can expose a high-value shipment to much greater losses. The real question is not what transport costs, but what risk comes with it.

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Lowest price and cargo theft risk – key takeaways

  • Choosing the cheapest carrier without checking its security procedures can significantly increase the risk of cargo theft.
  • GPS tracking and physical security measures cannot provide effective protection without trained staff and thorough checks of subcontractors throughout the supply chain.
  • Protecting cargo requires shippers, freight forwarders and carriers to commit resources and budget when the transport service is planned.

Ask yourself one basic question: when we choose the lowest quote, are we really buying secure transport? Until recently, many companies assumed that security began and ended with GPS tracking, a trailer lock or cargo insurance.

Today, it is clear that these safeguards are no longer sufficient on their own. Modern transport crime exploits process failures, weak partner checks, inadequate procedures and time pressure. Even the most advanced technology cannot protect a shipment if people or systems fail.

At the same time, shippers increasingly expect carriers to meet stringent security standards. This includes using modern monitoring systems, training drivers, planning routes around secure parking, screening subcontractors and preparing for current threats. Those expectations are reasonable, but security does not happen automatically; it requires investment.

Save €100 or risk losing €300,000?

Consider a straightforward example. A manufacturer needs to move a shipment worth €300,000. After receiving several quotes, it chooses the cheapest and saves roughly €100. On paper, that looks rational: every saving can seem worthwhile when budgets are tight.

Yet no one asks whether the carrier regularly trains its drivers to recognise the latest criminal tactics. Does it have a process for screening its subcontractors? Are rest stops planned only at secure parking areas? Do employees know how to respond to a fraudulent attempt to obtain the shipment or impersonate a legitimate carrier?

Days later, a theft occurs. The shipment disappears. An investigation follows. The customer wants answers, the insurer checks whether every required procedure was followed, and the company must explain the delay and resulting losses.

That €100 saving can be dwarfed by losses of several hundred thousand euros. There may also be damage to customer trust, disrupted supply continuity, additional audits, higher insurance premiums and years of work to rebuild the company’s reputation. The lesson is straightforward: security is not simply an expense. It is an investment in business continuity.

Questions to ask a carrier

More organisations are beginning to take this into account. Procurement teams are asking about security standards, certifications, carrier-screening procedures and experience in handling high-value goods. That is a positive shift. Security should be part of supplier evaluation from the outset, not an afterthought once the contract has been signed.

This does not mean every company must buy the most expensive solution available. It does mean that procurement decisions should reflect the actual level of risk.

Do not ask only how much the transport will cost. Ask how the carrier manages security, trains drivers, checks its partners and responds when an incident occurs.

Security is not solely the carrier’s responsibility. It is shared by every link in the supply chain: manufacturers, freight forwarders, logistics operators and transport companies. If companies expect strong cargo protection, security must be considered when the transport service is planned and purchased, not added later.

Perhaps the most important question today is not, ‘Which carrier is the cheapest?’ but, ‘Which carrier will do the most to protect my business?’

This article is part of an ongoing series exploring the growing problem of cargo theft and security in the transport sector. The series examines how criminal groups operate and how companies can protect cargo and drivers. Find all articles under #TransportSecurityInsights.

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