Posts Tagged ‘cargo security’

Cargo Theft/Value Loss Increases in 3rd Quarter

Friday, November 2nd, 2012

cargo theft

There are two words that are every trucker, shipper, manufacturer, and consignee’s worst nightmare…CARGO THEFT.  Despite enhanced security features and continued attempts to educate individuals on the subject and ways to prevent it, cargo theft continues to remain an issue that the industry faces every day, costing up to $30 billion each year according to FreightWatch.

2012’s 2nd quarter demonstrated a drop in the number of cargo thefts (excluding food/drinks, miscellaneous, and home/garden, which increased) from the 1st quarter to 210 thefts with an average value loss of $147,440, a 29% decrease. 1, 2

But this drop quickly vanished in the 3rd quarter with the number of thefts increasing to 225 and accounting for a cost of $172,403, increasing 23% from the 2nd quarter. 1

July contributed to the greatest number of thefts at 78, with California being the top state in which cargo theft occurred.

When analyzing the location of theft, unsecured parking areas took the number one spot with Jewelry/Accessories experiencing the greatest value loss of $600,000, which derived from a single theft, and food/drinks being the target of choice followed by electronics and auto/parts. 1

And this number is expected to get worse in the 4th quarter with the holiday season as manufacturers ship loads of food in preparation for Thanksgiving and electronics, jewelry, apparel, and consumer goods for Christmas.

ComScore.com reported that during the first 25 days of November leading up to the Thanksgiving holiday last year, online retail sales increased 15% compared to the previous year reporting $12.7 billion, continuing into December.

While trucking companies are benefitting from this spike in seasonal spending, thieves are finding it beneficial as well.  According to FreightWatch, cargo theft increases nearly 28% during the holiday season.

In order to help differentiate between the types of products stolen, and reduce the large numbers of cargo thefts grouped under the same category, FreightWatch has created the following new categories (info. below provided by http://www.truckinginfo.com/news/news-detail.asp?news_id=78398):

-Cosmetics/Personal Care

-Jewelry/Accessories

-Metals

-Luxury Goods (both under Clothing/Shoes and Jewelry/Accessories)

-Pharmaceutical sub-categories now include:

*Rx

*OTC Medication

*Medical Devices

*Consumer Products

Road Scholar is combating cargo theft through the following ways:

-Providing satellite and reefer tracking for live monitoring of your freight down to the street level.  You’ll always know where your freight is and who has it.

-Qualcomm distress/panic messaging allows disablement of the vehicle to prevent your cargo from taking off with the wrong person(s).

-Navlock, bolts, and seals protecting the contents of your freight.

-Background/drug checks and online driver verification to ensure that only the safest drivers are transporting your freight.

-Brightly colored awareness trucks that make our trucks easily recognizable and harder to steal.

Learn about supply chain security and the risks/importance of carrier selection by requesting your free white paper Supply Chain Insanity at http://www.roadscholar.com/supply-chain-insanity.php!

What are you doing to prepare and prevent holiday cargo theft?

1http://www.truckinginfo.com/news/news-detail.asp?news_id=78398

2http://www.truckinginfo.com/safety-compliance/news-detail.asp?news_id=77633&news_category_id=12

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Road Scholar Transport Increases Theft Prevention with CargoNet

Friday, November 4th, 2011

CargoNetRoad Scholar Transport is continuously pushing the performance envelope with new products and technologies with an emphasis on brand protection and on time performance.  That’s why we have increased our security measures by joining CargoNet, a group dedicated to theft prevention and recovery.

According to an annual report released by CargoNet earlier this year, cargo theft significantly rose last year, increasing from 700 thefts in 2009 to 1,035 in 2010, especially in large commerce regions, with the most thefts in 2010 occurring on Mondays.

But CargoNet operates with a purpose of cutting back on the number of thefts nationwide.

How are they doing it?  Let’s look at some real life examples of CargoNet’s effectiveness as noted by their recent case study.

Regionalized Alerts-  When four truckloads of electronics amounting to $400,000 in each trailer were stolen from a distribution center, CargoNet was quickly contacted.  Reacting immediately, the group alerted police within a 300-mile radius of the details.  Due to their quick reaction and regionalized broadcast, a police officer was able to uncover the trailers at a warehouse 60 miles away.

Verifiability- A traffic stop led police to uncover a load of TVs.  Finding the load suspicious, they contacted CargoNet who uploaded the serial numbers into their system.  Days later, they were able to match the serial numbers from the TVs to an insurance claim, verifying that the shipment was stolen.

Recovery During Transit- A truckload of electronics valued at $400,000 was stolen from a manufacturing facility.  When the driver refused to respond to the facility’s attempts at contact, CargoNet was notified and was able to locate and secure the trailer, allowing the company to send in two drivers to pick up and deliver the shipment.

Recovery Months Later-  CargoNet does not give up when it comes to recovering your  freight.  Here’s an example.  $1 million worth the electronics were stolen from a truck stop.  CargoNet was notified and entered the information into their database.  Three months down the road, police uncovered the electronics in a warehouse and upon contacting CargoNet, were able to match the goods they discovered with those stolen months ago, uncovering $300,000 worth.

Cargo theft will always be an issue as thieves try to cautiously plan their attacks on carriers.  The only way to prevent them from succeeding is to stay one step ahead of them, not only with security/technology, but knowledge as well, the way that Road Scholar Transport and CargoNet do.

You can view a pdf explaining all of Road Scholar Transport’s features/services at http://www.roadscholar.com/cms/uploads/files/rs-security.pdf.

For more information, visit http://cargonet.com or click on the video below to watch an overview on CargoNet.

Don’t let your products be the target of a theft scheme.  Go to www.roadscholar.com to learn what Road Scholar can do for you.

How much do you value cargo security?  List your comments below.

CargoNet Video

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Lock Shimming and Bumping Among Techniques Becoming More Popular by Thieves to Steal Cargo

Tuesday, September 20th, 2011

Cargo theft has claimed over $171,000,000 last year based on 747 reports of stolen freight, according to the National Insurance Crime Bureau, and it’s not a problem that is going away.

As technology continues to take the world by storm, thieves are becoming cleverer and turning towards newer, more convenient methods to hijack freight.

One technique is labeled lock shimming, which uses thin, but unbendable, pieces of metal to move around a padlock.  Like Babaco, a company specializing in cargo security, explains, shims work by “taking advantage of mechanical imperfections in typical padlocks.”

Thieves typically abide by a 90-second rule when attempting to steal freight.  If they cannot master a truck’s security system within 90 seconds, they move on to a weaker target, believing that surpassing that time will result in being caught.

But in the video below, a man demonstrates how easy it is to break a padlock, using the shimming technique to get the lock open in just 12 seconds, which is plenty of enough time for thieves to steal your cargo.

Not to mention how easy skims are to make.  According to several sources, an individual can make a skim out of an aluminum soda can!

lock shimming

Another method, known as lock bumping, acts as a pick, allowing thieves to use a master key to gain access in just about any common lock.

Using an easy method, thieves file an ordinary key in a precise way so that when tapped by an object into a lock, “the internal pins can be jarred in such a way that the lock will open” (http://www.hoax-slayer.com/lock-bumping.shtml).

As ehow.com notes, “Lock bumping leaves behind no signs of forced entry” so “insurance companies can be reluctant to pay claims resulting from a lock bumping theft,” which means you could lose thousands, even millions of dollars from a single cargo theft!

lock bumping

With videos surging on the web demonstrating how lock shims and bumping can be made and used, shippers need to be more careful of the security measures their carrier has on its trucks.

Road Scholar

Road Scholar Transport does not use cheap locks on its fleet but instead utilizes Navalock, a strong, resistant, tamper-evident steel locking bar that acts as a barrier against thieves, who will surely move onto another target once they cannot break through within 90 seconds.

Check out Road Scholar Transport’s high security services at http://www.roadscholar.com/additionalservices.php.

Who do you feel is more to blame, the internet for allowing people to post ‘how to’ videos on these techniques, allowing thieves to become skilled, or trucking companies for not using the most preventative measures in protecting a customer’s cargo?  List your comments below!

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NICB Reports 2010 Cargo Theft Statistics and Prevention Methods

Thursday, May 26th, 2011

Read this post at

http://www.roadscholar.com/blog/nicb-reports-2010-cargo-theft-statistics-and-prevention-methods/

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NICB Reports 2010 Cargo Theft Statistics and Prevention Methods

Thursday, May 26th, 2011

The National Insurance Crime Bureau (NICB) released its Data Analytics ForeCast Report last week, highlighting last year’s cargo theft statistics which consisted of 747 reports of stolen freight and a loss of over $171,000,000.

The following information is provided by the NICB report found on www.nicb.org/File%20Library/Public%20Affairs/2010-NICB-Identified-Cargo-Thefts.pdf.

Risks:

-Cargo was more prone to theft when stationed at areas where numerous trucks were located, such as “truck stops, parking lots, warehouses, and port cities.”

-Most thefts occur close to their origin, which the report notes, “within 200 miles or four hours.”

-As Walt Beadling and Jim Barrett note in their presentation on Cargo Security, which can be found on the RS University page, “Cargo at rest is cargo at risk.”  NICB acknowledges that it usually takes under five minutes for thieves to steal your freight.

-Do you know who is handling your freight?  Fraudulent companies, often given loads through online brokers, were responsible for numerous thefts, posing as a legitimate carrier in order to pick up the customer’s freight, which then never reaches its destination.  Know who your driver is and track your shipment live by shipping with Road Scholar Transport.

Statistics:

-Data found the state of California to have over twice the number of reported thefts than any other state with 247 cases. Texas placed second with 91 and Florida third with 66.

-The highest theft rate occurred in the month of February with 113 cases, followed by August at 78 and June with 76 thefts.

commodities

Provided by www.nicb.org/File%20Library/Public%20Affairs/2010-NICB-Identified-Cargo-Thefts.pdf

-When looking at the type of product thieves chose to steal, electronics stood out as the cargo of choice, accounting for 139 stolen shipments.  Ranking second was “other” at 118 and food third at 108.  Pharmaceuticals, a high valued target, only experienced 29 thefts, though suffering large losses, placing it at the number ten spot among the types of commodities stolen.  This number, however, excludes controlled pharmaceuticals (making up the 15th spot with five thefts) and over-the-counter pharmaceuticals (18th with two cases).  When combined, pharmaceutical theft would have 36 reports of theft last year, making it tied with metal in the 7th position.

Effects:

-Cargo theft does not only affect the shipper, receiver, and carrier but everyone in general.  According to the report, consumers face retail mark-ups of nearly 20% when freight is stolen.

-Carriers and shippers that are fortunate to have their cargo recovered often receive “damaged or tainted products that cannot be resold.”

-Along with higher costs come higher risks.  Thefts can result in harm for drivers and consumers face the chance of being sold a product that has been tampered with.  As the NICB explains, there have been times when thieves have altered the expiration date on products such as baby formula in order to resell it.  This, along with improper storage, can lead to health concerns when ingested.

Prevention:

-The NICB explains that the first step in avoiding employee theft is to properly screen staff.  That’s why Road Scholar Transport conducts background checks on all new hires and routine checks on drivers.

Road Scholar Transport

Road Scholar Transport

-Educating your staff on proper security measures is another way to prevent cargo theft.  As the NICB notes, employees should be trained on how to safeguard “five important assets” including “employee, trailer, tractor, cargo, and customers.”  At Road Scholar Transport, we hold safety meetings for our drivers as well as continuously educate our staff on the latest news in the trucking industry.  Working with the Cargo Security Alliance, our employees are alert of the newest and best ways to ensure the security of your freight.  With independent tracking on both the tractor and trailer, tools that make it easy and convenient for our customers to monitor their freight live, and other extensive security features which you can view at www.roadscholar.com, Road Scholar is protecting the safety of your shipment.

-The NICB encourages drivers to make a continuous run without stopping for the first 200 miles, “use secured lots,…avoid theft hotspots,” as well as not to assign new drivers the task of transporting expensive shipments.

Save yourself the hassle of wondering if your freight will be safe during transport by shipping with a secure company such as Road Scholar Transport.

Do you find any of the NICB’s report to startling?

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Consortium Outlines Ways to Protect Pharmaceuticals During Transport

Friday, May 20th, 2011

Rx-360, a group of volunteers consisting of members and shippers of the Pharmaceutical and Biotech industry, addressed the issue regarding the rise in pharmaceutical theft last week.

Rx-360

The consortium, formed in 2009 and whose purpose is to improve the secure transport of pharmaceuticals, outlined what they believe would enhance the safety of pharmaceutical shipments, according to www.rx-360.org.

Over a billion dollars is lost annually as a result of cargo thefts across the nation, partially due to punishment not being strict enough, as well as the need for multiple security means on transport trucks, such as those belonging to Road Scholar Transport which contain independent tractor and trailer tracking, navalock, bolts, seals, and much more.

According to Rx-360, there are standard measures that can be taken based on the level of security to prevent cargo threats and are outlined below (information provided by http://www.rx-360.org/LinkClick.aspx?fileticket=l5-cxXtx4p4%3D&tabid=209):

-For standard shipments, RX-360 recommends, “panic buttons within the ShowMedrivers compartment (Road Scholar uses Qualcomm which features similar panic buttons disabling the vehicle and preventing it from being stolen), hard sided vehicles, bull dog locks, seals, security vetting of drivers and probationary period of six months with the carrier before moving pharmaceutical product (you can verify a driver hassle-free online at http://www.roadscholar.com/verification.php), satellite tracking of the trailer position (ask about Road Scholar’s ShowMe feature which enables real-time tracking down to the “breadcrumbs”) and documentation controls.”

-For sensitive shipments, the group encourages “additional alarms ReeferTrakindicating when the trailer doors are open (satellite located, remote temperature monitoring), roof markings to allow the identification of the trailer by air, additional probationary period for the driver before moving sensitive shipments, known securing parking locations and, in some cases, the use of two drivers.”  It comes as no surprise that Road Scholar Transport provides electronic door monitoring alerting of every time a door is opened or closed, user-defined temperature alerts and monitoring via ReeferTrak, aerial tracking, and even the utilization of a team of drivers.

-Finally, for critical shipments, Rx-360 “entails the logistic service provider working with the site/market to determine per product what is critical (security, quality, both)” with “tailor made solutions for the specific distribution need.”

24 hour expedited

For those shipments that need to arrive at their destination fast, Road Scholar provides expedited shipping options.

Visit the RS University page at www.roadscholar.com to learn more about cargo security and the steps Road Scholar is taking to ensure the safety of your products.

What percentage of the trucking industry do you feel is actually well-versed in cargo security measures, applying the latest technology to their fleet?

ship with a secure company

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It’s Time to Get Schooled at RS University

Thursday, May 12th, 2011

Class is now in session at RS University and enrollment is easy!  All you need is access to the internet and you will gain a top education in cargo security.  Best of all, it’s free!

Who said class had to boring?  Now it doesn’t have to be.  By visiting http://www.roadscholar.com/university.php you can choose your classes with the click of a button…no books required.

Classes include:

Jim Barrett

Jim Barrett

Cargo Security 101: This core class is taught by Jim Barrett (President of Road Scholar Transport) and Walt Beadling (Managing Partner at the Cargo Security Alliance).  Students will grasp an understanding of the Cargo Security Alliance and current threats/trends in cargo security.  At the end of this course, students will be knowledgeable of the best practices and procedures they can apply to avoid risk and keep the supply chain secure.

Walt Beadling

Walt Beadling

Cargo Security 201-Chemical Transport: Also taught by Barrett and Beadling, this class focuses on the proper practice and procedures for the transport of chemicals and other hazmat materials.

Secure Transport 301: For those who want an effective and informative class, yet little time on their hands, this class is for you.  Secure Transport 301 uses a Pentagon Distribution Model to explain five methods Road Scholar uses to keep your high valued targets safe during transport:  technology, protocols, equipment, visibility, and accountability.

Joe Peters

Joe Peters

Tough Talk-Cargo Security Threats: This audio course is taught by Joe Peters and Jim Barrett.  Peters is the radio host of Tough Talk on 94.3 FM and has served in the White House and then as liaison to the Office of Homeland Security.  He has also operated as a commentator of law enforcement investigative and counter terrorism issues throughout the nation.  Peters and Barrett will provide real life threats to cargo security as well as prevention methods.

Tough Talk 2-Transporting Awareness: Peters and Barrett once again join forces to discuss the nationwide problem of bullying and the Road Scholar awareness campaign’s new initiative to Stop Bullying with the addition of a new tractor trailer set to spread the word of the effects of bullying and how to stop it.

The Newsletter: RS University also offers a monthly course highlighting hot topics in the trucking industry, the latest technology, personal stories and experiences on the road from Road Scholar drivers, learn about a new deserving charity each month sponsored by Road Scholar’s awareness campaign, and get to know the Road Scholar staff a little better.

The completion of these courses will provide you with useful knowledge you can apply to your everyday life to keep your goods safe during transport.

So what are you waiting for?  Enroll today at http://www.roadscholar.com/university.php!

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Over $12,000 Stolen from Driver’s Comdata Account, As Reports of Fuel Card Hacks Pour In

Wednesday, April 27th, 2011

comdataComdata and other fuel card companies are prime targets right now as fuel prices continue to skyrocket.  With this being said, it comes as no surprise of the number of reported theft cases from truck drivers whose accounts have been hacked.

As was the case last month when a San Antonio truck company driver, Albert Yoshimoto, was refused online access to his Comdata account.

Yoshimoto later found out why when he received a call from Comdata two weeks later claiming that $12,000 worth his checks were cashed overnight, an article in Land Line Magazine notes.

Whereas Yoshimoto blames Comdata for knowing that there was a problem and choosing to ignore it, Comdata believes that it is not their fault, they explained in an interview with the magazine.

Yoshimoto is not the only target either.  Reports of thieves hacking into a driver’s fuel card are being reported all over, and not just those using Comdata.

EFS Transportation Services experienced the same reaction this month when their customer, Wisconsin owner-operator Tracy George, had 17 checks stolen, valuing $10,400 (http://www.landlinemag.com/todays_news/Daily/2011/Apr11/042511/042611-01.shtml).

Both companies blame malware, which they state is what thieves are using to hack into accounts.  Customers are encouraged to have up-to-date anti-virus software installed on their computers to prevent this from occurring.

According to the article, software developer John Ewing blames “fuel card companies” for “allowing truckers to be robbed blind,” stating that “it’s really rare for a hacker to go into someone’s individual computer for anything other than sending out spam emails.”

A recent survey conducted by Land Line Magazine notes that fuel card theft is becoming more common, with 10 percent of those who participated claiming to have had their fuel cards hacked at least one time, with 15 percent of those paying in cash for their fuel, believing it to be a much safer route.

Regardless of rising fuel costs and thefts, the trucking industry remains “the Road Scholar Transportbackbone of America,” continuing to deliver your products across the nation.

Road Scholar Transport is well-versed in cargo security and will keep your freight safe from theft with our ever-evolving technology.  Visit www.roadscholar.com to request a rate via a secure website today!

What do you think companies issuing fuel cards should do to prevent thieves from hacking into accounts?

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Produce Called New MVP for Thieves as Police Continue to Track Down Fraudulent Trucking Company

Friday, April 15th, 2011

Tomatoes and other produce are being dubbed the new MVP (Most Valuable Product) among thieves after nearly $300,000 worth the food products were stolen last month by a group of thieves who created a fraudulent trucking company.

tomatoes

E&A Transport Express, a false Miami-based trucking company, is said to have stolen eight tractor trailers worth the food products which include six loads of tomatoes, one load of cucumbers, and one load of frozen meat, according to thestar.com.

Why thieves would target tomatoes instead of a trailer full of electronics may pose as a question to many.  The answer would have to do with freezing temperatures in Mexico that ruined and damaged crops, raising the price of produce, the site notes.

One 40,000 pound load of tomatoes that was stolen, for instance, cost West Coast Tomato $42,000 (http://www.thestar.com/news/world/article/975215–vegetable-bandits-strike-as-food-prices-soar).

The thieves, who are still not caught, realized the impact that freezing weather conditions would play on produce sales, which is why, thestar.com explains, E&A Transport Express quickly registered with the Federal Motor Carrier Safety Administration and began to search out brokers listing produce loads.

One of these brokers was Allen Lund, who verified the company’s registration with the FMCSA before giving the thieves loads.  But they were not the only ones conned.  Three other brokers were wrapped up in E&A Transport Express’s scheme as well.

tracking

By taking loads that were given a few days for delivery due to distance, the company had enough time to pull of the theft before the goods were reported missing/undelivered.  On the other hand, if the shipper had transported their cargo with Road Scholar Transport, they would been able to track their shipment live as well as have their freight constantly monitored by Road Scholar employees so that if a driver goes off route, the driver and truck are immediately contacted and checked of any problems.

Unfortunately, the inability to track your freight is the case for many produce companies who go through brokers to ship their freight.

More and more instances of fraudulent companies using online methods to develop and steal freight are erupting, posing a concern for those shippers using brokers, since they do not know who exactly is handling their freight or if the company now trusted with their goods is legit.

Having your products stolen is a concern for all companies but especially food, beverage, and pharmaceutical industries whose products, when in the wrong hands, could become contaminated and result in large effects on the health of the general public.

This can be prevented by choosing a reputable company who has been in business for years and is well-versed in cargo security, such as Road Scholar Transport.

Road Scholar has joined CargoNet, a group dedicated to theft prevention and recovery, and is continuously pushing the performance envelope with new products and technologies with an emphasis on brand protection and on time performances.

Owner Jim Barrett has been asked (and accepted) to do several radio interviews and presentations on cargo security.  Some of these include the radio show “Tough Talk” with Joe Peters, which you can hear at http://www.roadscholar.com/webinars/toughtalk2.html and presentations with Walt Beadling, President of the Cargo Security Alliance, who was recently featured on Fox News as an expert in the cargo security scare.

You can view a pdf explaining all of our features/services at http://www.roadscholar.com/cms/uploads/files/rs-security.pdf.

Don’t let your products be the target of a theft scheme.  Go to www.roadscholar.com to learn what Road Scholar can do for you.

How much do you value cargo security?

Flight 93

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