Cargo crime on the rise in the US + Russia’s Novatek terminal remains closed after fire

Cargo thefts in the US rose over 57% y-o-y in 2023 with nearly USD 130 mn worth of goods stolen, CNBC reported earlier this week, citing data from risk analyst CargoNet. The rate is also accelerating, with the first 20 weeks of 2023 seeing a 41% boost compared to the previous 20 weeks, Uber Freight CEO Lior Ron said. The uptick in incidents is due to cargo thefts being extremely low risks and very high rewards, founder and CEO of supply chain solution company Overhaul Barry Conlon added. Firms are investing in tracking technology and bluetooth seals to clamp down on incidents, CNBC wrote.

Russia’s Ust-Luga port is continuing to export crude oil and fuel except at a terminal belonging to LNG giant Novatek where a fire broke out on Sunday, Reuters reported, citing data from LSEG and unnamed industry sources. The port, which includes a crude oil export terminal and three fuel shipment terminals, exports oil and gas products to global markets.

Background: The fire erupted earlier this week at Novatek’s LNG processing Ust-Luga complex near St. Petersburg following a Ukrainian drone attack. Restarting the terminal’s large-scale operations could take weeks, analysts in the field told Reuters. Ust-Luga port exported around 5.2 mn tons of naphtha to Asia alone in 2023, with 2.8 mn tons coming from Novatek’s LNG terminal.