View of Santiago, Chile. Photo by CLAUDIO REYES / AFP via Getty Images.
AFP via Getty Images
The South American nation of Chile has long enjoyed a positive reputation for being one of the safest countries in Latin America. But, a recent trend of cargo truck hijackings in Chile is putting foreign executives on alert and raising new concerns about the risks facing truck drivers on Chilean roads. In one incident in May 2024 a group of hijackers in the capital city of Santiago took a delivery truck carrying goods for Mexican snack foods giant Grupo Bimbo. The thieves temporarily kidnapped the driver along with the truck. (Driver kidnappings during cargo truck hijackings are common in Mexico but not in Brazil.) In another recent incident thieves shot at a truck driver en route to the Chilean coastal city of Viña del Mar. The Chilean trucking chamber Confederación de Dueños de Camiones de Chile (CNDC) warns that hijackings are up significantly in 2024 in comparison to 2023, and that in many cases hijackers are using guns and violence in order to take control of trucks in-transit. In order to hear more about the risks affecting the logistics sector in Chile, I reached out to Joshua Finch, the Logistics Risk Manager at TT Club, an insurance company.
He says that Chile has emerged as one of the world’s worst hotspots for cargo truck hijacking.. “The only countries with more hijackings were Mexico and South Africa,” he explained, referencing the patterns in his company’s insurance claims.
The presence of armed hijackers who are willing to use violence to seize control of cargo trucks on open highways is a new risk for logistics sector in Chile. “Violence during these events has increased in recent years and was present in 18 percent of incidents,” Finch added.
As is the case in Mexico, in Chile snack foods are one of the top products targeted by hijackers. Food products can be resold easily in informal markets and family-owned local stores. “Food and beverage were by far the most targeted commodity, comprising 63 percent of all theft claims. Metals, electronics and cosmetic products were also targeted,” Finch said.
The rising incidence of cargo truck hijacking in Chile may be causing damage to Chile’s reputation as a safe place for foreign companies to operate. Among foreign executives in Chile, “cargo security is increasingly a recognized concern,” Finch said.
Foreign executives evaluating logistics routes in Chile need to be aware of the increased risk in the metro area surrounding Santiago. “The area of highest risk is around Santiago, including [nearby cities] Valparaiso, San Antonio and Rancangua, and all the highways that connect these four cities,” Finch explained. He also warned about the region that stretches south from the city of Concepcion as another hijacking hotspot.
Overall, Chile is still significantly safer than Mexico and many other countries in Latin America. Chile recorded a homicide rate of 6.3 per 100,000 residents in 2023. In total, Chile recorded only 1,247 murders in 2023. Mexico, by contrast, recorded 31,062 homicides in 2023. Americas Quarterly recently published an index ranking Chile as the 2nd best location for nearshoring investment in Latin America. Chile won’t lose its reputation for safety and stability overnight. But, local police and policymakers will need to take additional steps to improve security on Chile’s highways.
Additional reading: Mexico is the world’s worst hotspot for cargo truck hijacking
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Publish date : 2024-10-18 07:08:00
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