Posts Tagged ‘cargo theft’

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Hottest Black Market Product and Why

Wednesday, May 15th, 2013

It’s been the hottest target on the black market since 2010, accounting for 19% of all cargo thefts in 2012…food.  This trend has carried over into the first quarter of 2013 with food and beverage thefts making up 24% of stolen cargo at an average of $141,266 per incident, according to FreightWatch.

Why are food products so popular?

Food and beverages are hot black market items for a variety of reasons:

food products

*Lack of Security:  According to CargoNet’s Vice President of Operations Keith Lewis, “food and beverage cargo is popular because this product is often not secured as well as bigger ticket items” such as pharmaceuticals and electronics which carry high-tech tracking equipment.1

90% of cargo theft occurs while in transit via trucks, resulting in an annual loss of $35 billion, according to Tyco Integrated Security.  It goes without saying that stolen products, even if recovered, run a high risk of contamination concerns.  Road Scholar Transport specializes in product safety and security, cutting back on the handling of your products, which could lead to contamination, by offering 24-hour expedited service, dock-to-dock with NO transfers.  We can provide the exact route that the truck took with a time log noting every door opening/closing, temperature conditions within the trailer at any given time, and its exact location (right down to the breadcrumbs), along with protecting your freight with security features including Navalock.  Visit www.roadscholar.com to learn more about our services.

*Higher Returns:  As Tyco Integrated Security explains, although an average food theft incident has a loss of $100,000 compared to nearly $1 million for electronics, on the black market food is much more valuable, with food products being worth 70 cents on the dollar while electronics bring in 30 cents on the dollar or less. 2,3

Recent examples

In the past month, we’ve seen food and beverage thefts that resulted in stolen shipments valued as high as $200,000 worth.  Here are a few examples:

*Last month, 3,000 cartons of hamburger patties worth $100,000 were stolen from a shipping yard in New Jersey.  The patties, which were never recovered, are thought to be an insider job in which an employed tipped the thief off.

*What would hamburger patties be without cheese?  Also last month, 21 tons of muenster cheese was stolen with the intention of selling it to East Coast retailers at a discounted price.  Venjamin Balika pulled into Pasture Pride Cheese in Wisconsin and presented them with false paperwork which he used to secure 42,000 lb. of cheese manufactured by K&K Cheese in Wisconsin.  The shipment, which contained 1,135 cases of cheese, enough to make nearly 250,000 sandwiches, was valued at $200,000 and scheduled to deliver to a Texas location.

*$75,000 worth of Campbell’s soup was stolen in April after a tractor was stolen from a Florida truck stop. 3 Fortunately, the truck was equipped with GPS and the load was recovered.

*Earlier this month, 15,303 bottles of BluePrint juice worth $153,000 was stolen from a Long Island City warehouse by a fraudulent driver.  When the real driver showed up hours later, the company realized it was a heist and fortunately, was able to recover the stolen load and destroy the products due to contamination concerns.

Contact us below for a list of strategies that can help prevent your products from contamination risks.

Why do you believe food is the most targeted product by thieves?  Do you believe that accessibility and poor security measures are the number one reason?

1http://www.roadscholarawareness.org/reduced-security-leads-to-stolen-food-products/

2http://www.businessweek.com/articles/2013-05-08/the-growing-black-market-for-stolen-food

3http://money.msn.com/now/post.aspx?post=1230261d-63d0-4415-a527-0b0bf7da55b1

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First Quarter Cargo Theft Assessment

Wednesday, May 1st, 2013

Eat, drink, and be merry (that is, if you don’t get caught).  At least that’s the motto among cargo thieves who primarily targeted food and beverages in the 1st quarter.

In a scoring system that evaluates the level of risk for cargo theft ranging from Low, Elevated, Moderate, High, and Severe, the United States is placed on a high alert.  In fact, according to FreightWatch International, the United States is among the countries ranked the most at risk, joining Mexico, Brazil, South Africa, and Russia.

cargo theft

After a record breaking 2012 in which 946 incidents of US cargo theft were recorded, FreightWatch International released data from 2013’s 1st quarter, showing a 25% decrease in thefts from 2012’s 4th quarter.  Although typical of declines in 1st quarter activity, the 188 cargo thefts recorded between January and March 31st were lower than 1st quarter 2012 results in which 273 incidents were recorded, demonstrating a promising decrease in thefts expected this year.

FreightWatch reports an average loss of $141,266 per incident with food and beverages being the product of choice, resulting in 46 occurrences, 24% of all thefts. 1

Pharmaceuticals, which announced a drop both in number and value last year, 30% of 2012’s cargo thefts, ranked the second most stolen product (13%), with 24 thefts.

Electronics, another decreasing trend, dropped to 12% in the 1st quarter followed by metals at 10%, and alcohol (8%). 1

But while some products were on the decline, increasing occurrences of deceptive pickups were reported, rising from a mere 8 in 2009 to 18 in 2013’s 1st quarter alone.

Just last month an Illinois man was arrested for stealing 21 tons of muenster cheese with the intention of selling it to East Coast retailers at a discounted price.  Venjamin Balika pulled into Pasture Pride Cheese in Wisconsin and presented them with false paperwork which he used to secure 42,000 lb. of cheese manufactured by K&K Cheese in Wisconsin.  The shipment, which contained 1,135 cases of cheese, enough to make nearly 250,000 sandwiches, was valued at $200,000 and scheduled to deliver to a Texas location.

If our brightly colored awareness trucks do not distinguish us from fraudulent carriers, Road Scholar Transport allows our customers to easily verify drivers online via Regiscope at http://www.roadscholar.com/verification.php so you can ensure that your products are being picked up by legit and qualified drivers.

According to FreightWatch’s report, trailer thefts resulted in 115 thefts (61%) with 110 of the total thefts being in unsecure parking areas and 22 occurring at facilities.

Fortunately, only 2% of cargo theft in the US involves violence, the exact opposite of the rising number of thefts in Mexico which are mostly violent. 2 While US 1st quarter cargo thefts decreased to 188, Mexico’s incidents reached 303.

To read FreightWatch’s 2013 Global Cargo Theft Assessment visit

http://www.freightwatchintl.com/sites/default/files/attachments/FreightWatch%202013%20Global%20Cargo%20Theft%20Threat%20Assesment%20Full.pdf.

Road Scholar Transport is helping you prevent the risk of cargo theft with the following tips:

-Do not leave cargo unattended.  If necessary, be sure that the trailer is in a secure area.

-Vet out carriers and verify drivers prior to trusting them with your freight.

-Utilize trailers equipped with security features including satellite tracking, navalock, geo-fencing, and electronic door monitoring.

Contact us below for a list of ways Road Scholar is combating cargo theft.

What changes in cargo theft do you expect to see this year compared to last? Product-wise, location-wise, methods of theft,…etc.  Do you expect cargo theft to decrease, increase, or remain the same compared to last year?

1http://www.etrucker.com/ovd/188-cargo-thefts-recorded-in-first-quarter-of-2013

2http://www.freightwatchintl.com/sites/default/files/attachments/FreightWatch%202013%20Global%20Cargo%20Theft%20Threat%20Assesment%20Full.pdf

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Reduced Security Leads to Stolen Food Products

Friday, March 22nd, 2013

Food /beverages were the most popular stolen product in 2012, topping other high risk and sought after products such as pharmaceuticals and electronics.  According to CargoNet’s Vice President of Operations Keith Lewis, “Though pharmaceuticals and electronics are the most expensive items cargo thieves target, food and beverage cargo is also popular because this product is often not secured as well as bigger ticket items.” 1

Over the years, we have seen changes in the type of commodity targeted by thieves.  Electronics, once the largest product theft “accounting for nearly 1 out of 3 in 2007,” has been drastically dropping, resulting in 17% of thefts in 2011 and 12% in 2012. 2

According to Industry Market Trends, one of the reasons for this product change is the increasing amount of multi-trailer thefts.  As Lewis explains, “There are different types of crime rings that tie into the different types of commodities that are stolen…and are likely to blame for high value cargo theft.” 1

Stunningly, 85% or more of cargo thefts are the result of insider jobs, individuals who had the information/ability and used it for their own benefit.

Lewis continues, “The person who called 911 is the person I want to talk to first.  Start with the driver, the person who last touched the freight. Follow the evidence, it will either lead to a loose knit group of three guys that decided to steal some freight tonight or it was an organized group that methodically plotted, did surveillance, used GPS, and had specific types of tools for the crime.” 1

These stolen products are more frequently making their way into the mom and pop shops who are independent retailers looking for inexpensive products to stock their shelves. 3 In cases where an insider job was not the case, the driver may still be held negligent, which is why it’s important to take proper precautions when transporting and choosing who handles your freight.

About CargoNet

CargoNet is a group dedicated to theft prevention and recovery, offering regionalized alerts, verifiability, recovery during transit, recovery months later, and more.

Road Scholar Transport is proud to be a member of CargoNet, increasing our security measures and continuously pushing the performance envelope with new products and technologies with an emphasis on brand protection and on time performance.  Road Scholar President Jim Barrett and Walt Beadling, Managing Partner of the Cargo Security Alliance, have done several presentations regarding cargo security to demonstrate proper strategies and best practices for risk mitigation, including a discussion of the importance of collaboration, speed and visibility to supply chain security, combined with multi-layered security protocols that establish, maintain and prove a secure chain of custody.  To view these presentations visit RS University.

You can learn more about the services the CargoNet provides at http://cargonet.com/.

Below are three ways in which Road Scholar helps protect your food/beverage products during transport:

-Road Scholar Transport implements StarTrak telematic solutions to provide GPS tracking and real-time monitoring of reefer status to include operating state, temperatures, alarms, battery condition, door events, and two-way control functionality to turn the reefer on/off and change reefer temperature set-point.

-Road Scholar Transport has state-of-the-art reefers, dry vans, and power units that won’t break down.  Our power units are also equipped with GPS technology for redundant traceability.  Road Scholar Transport also implements rollover and collision sensing technology to protect your freight by preventing accidents.  We diligently keep a full audit trail of what was previously in a trailer, and routinely wash and cleanse the equipment…keeping it “food grade.”

-Road Scholar Transport’s equipment and technology is effective because they have industry best “Order Fulfillment Experts” monitoring the status of every order, every piece of equipment, and any variables that may affect the shipment such as traffic or weather.  This 24 x 7 x 365 team’s motto is “If you want to stay up all night that’s YOUR problem…If you don’t, it’s OURS.”

Do you believe that food and beverages are becoming more targeted because they are not secured as well as pharmaceuticals or other high risk products?

1http://www.claimsjournal.com/news/national/2013/03/18/225195.htm

2http://www.truckinginfo.com/channel/aftermarket/news/story/2013/01/2012-freight-thefts-remain-near-2011s-record-high.aspx?prestitial=1

3http://www.transportsecurity.com/blog/default.asp

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Food Supply Chain Risks

Wednesday, February 13th, 2013

Between January 2011 and September 2012 there were over 1,700 foodborne illnesses linked to food recalls including 37 deaths, according to data provided by the Food and Drug Administration and the Food Safety Inspection Service.  In fact, foodborne illnesses affect 1 in 6 people annually, claiming nearly 3,000 lives.1

Food Modernization Act

On January 4th, 2011, the Food Safety Modernization Act (FSMA) was signed into law by President Obama, making it the first significant food safety reform in over 70 years.  Last month, the (FDA) progressed forward in releasing two major proposals that would do the following:

1.  Manufacturing, process, packing, or holding facilities of human food products that “are required to register with FDA under FDA’s current food facility registration regulations,” must “develop a formal plan for preventing their products from causing foodborne illnesses.”2, 3 This includes:

a) “Analyzing potential hazards associated with their facilities” along with a recall plan.4

b) “Develop and implement controls to significantly minimize or prevent those hazards.”4

c) “Verify the controls are working (and take corrective action if they are not).”4

d) “Periodically reassess those hazards and controls.”4

2.  “Enforceable safety standards for the production and harvesting of produce on farms.”3

Even with regulations such as the Food Safety Modernization Act, shippers continue to face contamination concerns due to several risk factors.

Wooden Pallets

The risk of wooden pallets causing contamination to products in the wooden palletssupply chain is becoming an increasing concern, due to chemicals and bacteria that can penetrate and build up in the pallet.

Recall the recent case where 2,4,6-tribromoanisole (TBA), a chemical compound used to treat wood products, was found in pallets being brought into the U.S. through other countries.

To make matters worse, with 1-2 billion wood pallets being shipped in the U.S. and nearly 500 million being replaced each year, it is nearly impossible to enforce total control of wooden pallets treated with TBP being imported.  Therefore, the industry faces several recalls each year due to contaminated products.

It is often a moldy odor reported by consumers that lead food, beverage, pharmaceutical and consumer healthcare companies to detect the TBA substance but since the chemical leaves an unpleasant taste, it often goes unrecognized when taking a pill or tablet, making it harder to detect the TBA taints in pharmaceuticals.

If wooden pallets serve as means of contamination, so can trailers with wooden floors as well, due to spills within the trailer from previous freight, unsanitary objects and materials being carried on from shoes and forklifts, among many other means.

Here’s how Road Scholar Transport can help:

aluminum floor

*We utilize aluminum floor trailers which can help prevent contamination built up on wooden flooring over time, creating a more sanitary environment for your products.

*We conduct regular sweeps on all trailers to ensure that your freight is being transported in a clean, and therefore safe, environment.

*We have record of what was inside the trailer before your freight, before that, within the last month, and so on, as well as what has been transported since the last time the trailer was cleaned.

Temperature Regulation

Proper temperature conditions during transport remain a top concern among shippers whose products must maintain specific temperature ranges or else face spoilage and contamination risks.  Temperature regulation concerns result from weather conditions (as hot summer months resulting in extremely high temperatures within the trailer as well as winter conditions posing freezing concerns) along with carriers trying to cut costs.

The abnormally high number of trucks containing faulty or no refrigeration units at all are found to result from two main causes:  1.  Poor maintenance habits and 2.  With the rising price of fuel many companies are shutting their reefer units off during transport and quickly turning them on again right before delivery thinking that it will acquire the necessary temperature. 5

41 degrees is the maximum temperature refrigerated foods must be transported in to prevent bacterial growth and any fluctuation in temperature by carriers turning off their units can tamper the product and cause widespread recalls and consumer health concerns.

But what if we told you that Road Scholar Transport can assure you, the shipper, that your products were safely transported in the required temperature range given throughout the entire delivery process?

With our ReeferTrak system, we can provide our customers proof of the exact temperature inside the reefer any time, even months after delivery so you don’t have to worry about whether your products face a possible contamination risk due to improper transport.

Our ReeferTrak immediately alerts our team of even the slightest change in the temperature of your freight, providing the right environmental conditions for your freight.  We also cut back on the handling of your products, which could lead to contamination, by offering 24-hour expedited service, dock-to-dock with NO transfers.

Road Scholar can provide the exact route that the truck took with a time log noting every door opening/closing, temperature conditions within the trailer at any given time, and its exact location (right down to the breadcrumbs).

Theft/Insider Jobs

Cargo theft has always been a leading issue in the trucking industry.  According to FreightWatch, Food/Drinks averaged a value loss per incident of $73,673 last year, accounting for the number one stolen product type for three consecutive years.

“One of the more notorious product recalls involving a widely recognized consumable brand was the case of Tylenol. In 1982, several people died after taking Tylenol laced with cyanide. It was discovered that the Tylenol was tampered with—but as a result of the news, Tylenol, then Johnson & Johnson’s best selling pharmaceutical product, saw its market share drop from about 37 percent to 7 percent. As a shipper, a key lesson learned from Tylenol was the tampering occurred outside the confines of the manufacturing facility.” 6 ~Excerpt from “Supply Chain Insanity…Would You Use a Babysitter You Found on Craigslist?”  Request your copy here.

Do you feel that food safety efforts in the supply chain have improved greatly in the recent years or require significant change yet?

For a copy of Road Scholar’s food transport safety brochure click here.

1http://www.ama-assn.org/amednews/2013/02/11/hlsa0211.htm

2http://www.lexology.com/library/detail.aspx?g=d34b3dbc-273a-4e9f-ac48-3871a85e8a58

3http://www.cattlenetwork.com/cattle-news/latest/DC-Watch-Debt-ceiling-debate-next-on-US-agenda–186493231.html

4http://www.feedstuffs.com/ME2/dirmod.asp?sid=F4D1A9DFCD974EAD8CD5205E15C1CB42&nm=Breaking+News&type=news&mod=News&mid=A3D60400B4204079A76C4B1B129CB433&tier=3&nid=CAF887EA5AC643D8A4B846D700FC85DC

5http://www.truckinginfo.com/news/news-detail.asp?news_id=74344

6http://www.brandchannel.com/features_effect.asp?pf_id=385

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2012 Cargo Theft Decreases

Wednesday, January 30th, 2013

FreightWatch International released its 2012 cargo theft report on Monday, indicating a slight decrease in thefts last year.

According to the report, cargo theft dropped 0.5% to 940 thefts with nearly 81% of these being full truckloads or containers.  Hijackings/violent thefts decreased as well, accounting for only 2% of all thefts. 1

Pharmaceuticals, a high-valued target, announced a drop both in instances and value.  Compared to 2011, pharmaceutical product theft has decreased from 36 to 30 last year with the average stolen value dropping drastically from $585,000 to $168,219, an even larger drastic decrease from 2009’s $4.2 million per incident statistic, according to the Pharmaceutical Cargo Security Consortium.

Overall, there were 14 full truckload pharmaceutical thefts with the majority taking place over the weekend or holiday, which is unsurprising being most thefts took place last year on Fridays and Saturday with January, March, and April being the busiest time. 2, 3

white paper

Learn about supply chain security and the risks/importance of carrier selection by requesting your free white paper by clicking the image above.

In addition, 10 out of 14 of these thefts did not employ GPS tracking technology, creating a difficult means of recovery which can lead to contaminated products, recalls, consumer health issues, and brand equity concerns.

Although cargo theft numbers/value decreased last year, there was still an average of 2.6 thefts per day with 75% of these thefts concentrating in six key states: California, Florida, Texas, New Jersey, Georgia, and Illinois. 1

Jewelry/accessories ranked in the number spot for the greatest loss per incident, averaging $425,000 while food/drinks were the most popular stolen product. 3 Metal thefts significantly increased as well, doubling from 73 thefts in 2011 to 130. 3

FreightWatch International also reported a rise in the number of fraudulent pick ups.  More and more thieves are turning towards the internet to steal freight, posing as a carrier in order to seize loads from broker loads.  With many brokers not vetting out carriers and instead, grabbing the cheapest rate, thieves are making away with shipments.

Road Scholar Transport is helping you prevent risk of cargo theft with the following tips:

-Do not leave cargo unattended.  If necessary, be sure that the trailer is in a secure area.

-Vet out carriers and verify drivers prior to trusting them to handle your freight.

-Utilize trailers equipped with security features including satellite tracking, navalock, geo-fencing, and electronic door monitoring.

Want to learn more about how Road Scholar is combating cargo theft in our fleet?  E-mail us here and we will send you six security methods we use to prevent the risk of our customer’s freight being stolen.

To register for FreightWatch International’s cargo report click here.

1http://www.ccjdigital.com/cargo-theft-numbers-drop-in-2012-after-2011-increase/

2http://www.securingindustry.com/pharmaceuticals/pcsc-says-pharma-cargo-theft-declined-in-2012/s40/a1597/

3http://www.businessinsurance.com/article/20130122/NEWS07/130129955?tags=|312|303

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NY Thruway Announces Decision on 45% Toll Increase

Friday, December 21st, 2012

Last May the New York State Thruway Authority proposed a 45% toll hike on commercial vehicles with more than three axles in an attempt to raise $85 million to repair damage caused by trucks on the Tappan Zee Bridge. With the new hikes, the cost of a three-axle truck going from Buffalo to New York City would increase from around $88 to $127.

In response to opposition from manufacturers, shippers, and members of the trucking industry, which called the increase “intolerable” and “ridiculous,” the Thruway announced its decision to drop its proposal on Monday.

The result came from concerns that the hike would greatly impact a carriers’ net profit. One trucking company acknowledged that they would be hit with a cost of nearly $660,000 due to the polls while another noted that the hike would deduct nearly a third of their profit. 1 As one carrier explained, “This could put us out of business,” expecting the tolls to affect half of his company’s net income. 1

To account for these profit deficits, the companies would resort to lowering costs within, including eliminating pay raises for drivers who are in desperate need in the industry.

Additionally, the trucking companies are considering alternate routes in order to avoid tolls, which could ultimately lead to greater congestion on roads and longer routes, eating up a driver’s hours-of-service.

And finally, it would come as no surprise that higher tolls would leave carriers no choice but to raise their costs/fees in order to account for this hike, thus impacting shippers and manufactures, especially those in the food industry, who then need to charge more for their products, trickling costs down to wholesalers, and ultimately, to consumers.

As NYSMTA’s Kendra Hems states, “The hike would have devastated the entire state’s economy and nullified any attempts by the governor and the legislature to make New York ‘open for business.’” 2

Instead, NYS Thruway Authority Executive Director Thomas Madison presented other cost saving means to replace the money that would have been brought in by the tolls. According to Madison, “the proposed 2013 operating budget for the Authority is 21% below that of 2012” as the authority “is cutting costs by $25 million in 2012 and $130 million in “fiscal reforms” planned for the next three years.” 2, 3

In addition, the Authority is seeking to do the following:

*Reduce the Authority’s workforce by 6%. 4

*Freezing salaries of M/C managers. 4

*Reducing overtime, travel, and other optional expenses. 4

*Continued “efforts such as reduce vehicle and equipment purchases and fleet size.” 4

Carriers taking alternative routes to avoid tolls can put your freight at risk of significant delays, higher mileage/rates, and unsecure routes that are prone to cargo theft. Contact Road Scholar Transport today at www.roadscholar.com to learn about our online tools for the LIVE tracking of your freight.

What do you think of the Thruway’s decision to drop the 45% toll hike proposal? Are alternate means of cost-saving such as reducing their workforce, freezing salaries, etc. the way to go?

Click on the image below read Madison’s presentation on New Cost Savings for the Thruway Authority.

new cost savings

1http://www.syracuse.com/news/index.ssf/2012/08/opponents_speak_out_at_thruway.html
2http://fleetowner.com/fleet-management/new-york-state-dumps-controversial-truck-toll-hike
3http://auburnpub.com/blogs/eye_on_ny/area-state-legislators-agree-no-toll-hike-for-trucks-a/article_45d916a0-493e-11e2-8cac-001a4bcf887a.html
4http://www.scribd.com/doc/117175236/New-Cost-Savings-for-the-Thruway-Authority

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Tis’ the Season for Security…Insider Job Results in Stolen $1.9 Million iPad Minis Shipment

Wednesday, November 21st, 2012

iPad mini

In what is being compared to the 1990 film Goodfellas, in which thieves committed what is known as the 1978 Lufthansa heist, stealing over $5 million worth the cash and jewelry from Building 261 at the JFK airport, cargo thieves mimicked the film last week, this time stealing one of iPad’s newest products.

3,600 iPad Minis valued at $1.9 million were stolen from the same JFK airport building as in the movie on the night of Monday, November 12th.

The heist was found to be an insider job as authorities arrested Renel Rene Richardson, employee of JFK’s Cargo Air Services building, who “allegedly made suspicious inquiries to coworkers about the shipment, as well as where he might be able to access a forklift.” 1

Richardson acted as a lookout in the heist as two others entered the building, utilizing the airport’s forklift to load two pallets of the iPad minis into the truck just before another airport employee, who was arriving from dinner, began questioning the thieves, leading them to flee before they could load three other pallets of iPads onto the truck. 1, 2

The iPad Minis, which were a new product announced by Apple last month, are a hot item this Christmas and the load one of the first of its shipments to arrive from China that were to be delivered across the U.S.  The truck and iPads are still reported as missing.

Theft results in a loss of more than $30 billion in the transportation/shipping industry each year.  What’s even more stunning is that 85% or more of these thefts are a result of insider jobs, individuals who had the information/ability and used it for their own benefit.

Drivers utilize what they know about a shipment/trucking company, not to steal the freight themselves, but rather distribute their information to thieves in return for compensation.

Drivers have also been known to stage their own hijackings, arranging to leave their trucks unattended at a specific time in which their accomplice then moves in, stealing the loaded truck in exchange for money.

Visit www.roadscholar.com today and let Road Scholar Transport keep your freight safe not only during the holiday season but year round.

Click here to get a rate!

1http://appleinsider.com/articles/12/11/19/suspect-arrested-in-19m-ipad-mini-heist-at-jfk-airport

2http://www.geek.com/articles/news/1-5-million-of-ipad-minis-stolen-from-goodfellas-jfk-heist-building-20121115/

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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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Stolen Freight Has Georgia Companies Turning Towards CargoNet

Friday, September 14th, 2012

Cargo theft continues to remain a growing problem, with the number of incidents reported last year increasing 17%, up 180 incidents from the previous year, as cited in CargoNet’s 2011 theft report.  These statistics demonstrate that standard security methods (including padlocks and seals) are becoming inadequate in today’s society where thieves  are becoming more familiar with these methods, thus, finding it easier to steal freight in as little as 60 seconds.

But many shippers refuse to acknowledge the increasing problem of cargo theft.

Ed Crowell, President of the Georgia Motor Trucking Association (GMTA), spoke on the issue stating, “We for years on the industry side were silent.  If someone had a theft event, they didn’t want anybody to know about it. They didn’t want shippers to know about it. They didn’t want motor carriers to know about it for competitive reasons. Sometimes they didn’t want their insurance company to know about it and they would just eat the loss. That may have served a short-term purpose, but it also made it much easier for criminals to get away with their crimes.” 1

These crimes become worse over the holiday weekend, increasing 28% according to FreightWatch, as cargo becomes a ‘sitting duck’ for thieves.  As the saying goes, cargo at rest is cargo at risk.

So was the case this past Labor Day weekend in Georgia, ranked fifth in the nation when it comes to cargo theft.

On Sunday, September 2nd, a 53’ tractor trailer transporting 52 pallets of Folgers coffee, valued at $139,000, was stolen in Albany.  But that’s not all.  This same weekend in Atlanta, while a driver slept in his cab Sunday night at a travel center, thieves stole two pallets of hydromorphone-filled injectors valued at $170,000.  The driver alerted police of the dangerous pharmaceutical theft (hydromorphone is 6-8 times more powerful than morphine and can be deadly if mixed with alcohol). 1

Fortunately, the GMTA had recently formed an alliance with CargoNet, a group dedicated to theft prevention and recovery, last August, which would the allow all cargo thefts reported to the GMTA to “be transmitted directly to CargoNet’s 24-hour operations center, which will assist in recovery efforts by working in tandem with law enforcement agencies on a local, regional, and national level.” 2

This alliance allowed the GBI to locate and recover the stolen pharmaceutical shipment before the shipment could cause any serious dangers.

CargoNet offers regionalized alerts, verifiability, recovery during transit, recovery months later, and more.  You can learn more about the services the group provides at http://cargonet.com/.

Road Scholar Transport is proud to be a member of CargoNet, increasing our security measures and continuously pushing the performance envelope with new products and technologies with an emphasis on brand protection and on time performance.

Check out Road Scholar University for a presentation given by Road Scholar President Jim Barrett and Walt Beadling, Managing Partner of the Cargo Security Alliance, for a brief overview of the Cargo Security Alliance and a review of current threats to cargo security, the regulatory environment, and related trends by attending Cargo Security 101.   Participants will be taken through strategies and best practices for risk mitigation, including a discussion of the importance of collaboration, speed and visibility to supply chain security, combined with multi-layered security protocols that establish, maintain and prove a secure chain of custody.

Want to learn more?  Attend Cargo Security 201, where you will learn about the trends, threats, and best practices in secure transport of chemicals and other dangerous materials.

Would you prefer to ship with a company who is part of CargoNet?  Do you feel that standard methods of security are adequate enough?  List your comments below.

RS University

1http://www.wsbradio.com/news/news/georgia-cargo-industry-trying-improve-theft-rankin/nR6tT/

2http://www.reuters.com/article/2012/08/29/idUS178795+29-Aug-2012+HUG20120829

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Holiday Weekend Reminds Shippers/Carriers to Use Caution

Friday, May 25th, 2012

This upcoming Memorial Day weekend serves as a reminder to members of the transportation industry/supply chain to be on alert and use extreme caution for cargo theft.

According to FreightWatch International, US cargo theft increases 28 percent during the holidays, mainly because cargo sits during the holiday weekend and, as we are well aware of, cargo at rest is cargo at risk, serving as a “sitting duck” for thieves everywhere.

THE FACTS

Cargo theft continues to remain a growing problem, with the number of incidents reported last year increasing 17%, up 180 incidents from the previous year, as cited in CargoNet’s 2011 theft report.  These 1,215 shipments stolen resulted in a loss of $130 million in 2011.1 Could your company take a loss like that and not even think twice about it?

TOP AT-RISK LOCATIONS

When looking at last year’s numbers, truck stops accounted for the greatest number of thefts, followed by warehouses/distribution centers, and parking lots. 1

Although cargo theft can occur anytime, anywhere, CargoNet lists the top 10 states that represented the highest reports of cargo theft in 2011 with New York and Indiana being new to the list.  The results were as follows (top ten states at risk represented with a star.  NY and NC tied in 10th):

states at greatest risk

WHEN

As mentioned earlier, cargo theft increases during the holiday season and graphon weekends when trailers await their Monday deliveries.  Looking at the ISAC’s graph on the right, 2012’s first quarter experienced 233 cargo thefts, with 79 occurring on Saturday/Sunday.  The middle of the week experienced the least number of thefts.

TOP COMMODITIES AT RISK

Last year, food/beverages made the spotlight as the greatest target among thieves followed by electronics; however, this year’s 1st quarter has shown a drop in stolen food products to the number two spot.  Ranking in as the current greatest commodity target …metals.

In fact, according to FreightWatch International, “cargo theft in the metal industry in the United States has increased 254%,” rising from “13 thefts in the fourth quarter of 2011 to 46 incidents in the first quarter of this year.” 2

INSIDER JOBS

Theft results in a loss of more than $30 billion in the transportation/shipping industry each year.  What’s even more stunning is that 85% or more of these thefts are a result of insider jobs, individuals who had the information/ability and used it for their own benefit.

Drivers have been known to stage their own hijackings, arranging to leave their trucks unattended at a specific time in which their accomplice then moves in, stealing the loaded truck in exchange for money.

Other drivers utilize what they know about a shipment/trucking company, not to steal the freight themselves, but rather distribute their information to thieves in return for compensation.

According to the Journal of Commerce, thieves “will also hire former drivers to carry out fraudulent pickups at warehouses because the drivers know the routine and the documentation that is needed.” 3

Road Scholar is helping prevent your risk of cargo theft with the following tips:

-Do not leave cargo unattended.  If necessary, be sure to the trailer is in a secure area.

-Vet out carriers and verify drivers prior to trusting them to handle your freight.

-Utilize trailers equipped with security features including satellite tracking, navalock, geo-fencing, and electronic door monitoring.

As a shipper, would you be interested in a free cargo security risk\threat analysis?  Reply below.

1http://www.scribd.com/doc/91929292/2011-United-States-Cargo-Theft-Report

2http://www.businessinsurance.com/article/20120424/NEWS07/120429952

3http://www.joc.com/supply-chain-management/cargo-thieves-increasingly-sophisticated-expert-warns

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