Author: Paul Ploumis05 May 2015 Last updated at 04:15:22 GMT
VANCOUVER (Scrap Monster): The panelists at a session held during the 2015 ISRI Convention & Exposition discussed the rising incidents of scrap metal theft from containers and proposed various measures to combat the risk. The session titled “International Trade 101: How to Protect the Value of Your Scrap Exports” discussed about the threats of scrap metal theft at domestic as well as offshore markets.
The theft at containers in overseas ports gained momentum several years ago when copper scrap prices soared to record high levels. Even though copper scrap prices has receded from those high levels, the theft issue still persists. The risk of container scrap theft has adversely affected the industry despite burgeoning rise in recyclable export volumes largely benefiting scrap metal traders.
According to Randy Goodman, a recent survey conducted for ISRI had highlighted Hong Kong and the Pearl River Delta as the locations most vulnerable to container theft risks. Shanghai also has reported high occurrence of scrap container theft incidents. As per estimates Hong Kong region accounted for almost 10% of all coppers crap exports from the US to China during 2014. The exports totaled around $290 million. The average cost of thefts in the region amounted to $10 million, which equates to nearly 3.5% of the total container exports through the region.
David Cuckney, Manager, International Maritime Bureau supported the views expressed by Goodman. He stated that though China could be considered as the hot spot for scrap container thefts, South America and Africa are also regions to be watched closely. According to him, container scrap theft is an organized crime involving several parties including vessel agents, port agents and carrier agents.
The Convention called upon all parties to join hands in order to address the issue. In addition, carriers and ports must increase their security.