cargo theft >
Cargo Theft Risk Dependent on Where Truck Drivers Park
Cargo theft costs carriers and suppliers millions of dollars each year, and the latest theft report by the theft prevention and recovery services provider CargoNet has found that theft levels are closely tied to where drivers park.
In the third quarter, the number of overall cargo thefts — 213 — dropped 23 percent when compared to the same time period last year. CargoNet said security at truck stops has paid off, and thefts on travel center property dropped 60 percent from third-quarter 2014. However, cargo thefts that occurred while the vehicle was parked along the side of a road spiked, increasing 144 percent.
Overall, cargo thieves in the United States and Canada stole more than $22.5 million in cargo in the third quarter — down from the $45.8 million in cargo stolen during third-quarter 2014.
"We advise carriers to avoid leaving their trucks along the roadside — especially in Florida and California, where roadside thefts were highest," CargoNet said in its third quarter report.
Certain regions of the country tend to experience greater theft levels. The Supply Chain-Information Sharing and Analysis Center, which collects data on cargo theft, said to date in 2015, the states with the highest theft rates are California, Texas, Florida, Georgia, New Jersey and Illinois.
"These top six states should be considered very high-risk locations as they continually rate in the top of the charts. When you drill down further, you see hot spot areas in those states around Dallas, the Los Angeles basin, Atlanta, Chicago, and Miami, while New Jersey seemingly had activity in many different municipalities," the SC-ISAC said in its report.
Six Ways to Reduce the Risk of Cargo Theft
Park in well-lit truck stops rather than at the side of the road.
Utilize track and trace technologies to monitor loads.
Establish geofencing boundaries and deliver messages to drivers when they enter truck stops and rest areas that have been experiencing theft.
Route and schedule drivers to allow them to avoid having to rest on the fringes of large metro areas, which can experience greater levels of theft.
Have drivers back trailers up to a building, fence or other trailer to make it difficult for cargo thieves to open trailer doors.
Use a lock on trailer doors.
The holidays tend to bring an increase in the number of cargo thefts that occur. FreightWatch International, a supply chain security company, reported that in 2014, theft activity was concentrated during the seasonal peak period of September through December with a cumulative 245 incidents.
Theft of full truckloads constituted 89 percent of cargo theft in the United States with a majority of reported cases from September through December occurring at unsecured parking areas.
"Many events also included driver theft incidents involving either direct theft by the driver, the driver's voluntary collusion or complicity in the crime, or a deceptive criminal posing as a legitimate carrier resource," FreightWatch said in its report. "This modus operandi has evolved to often include drivers orchestrating mechanical failures, documentation of repair services, and the subsequent use of a viable alibi upon the arrival of law enforcement."
Fictitious pickups continue to be a growing threat in the trucking industry, FreightWatch said. The frequency of fictitious pickups increased sharply from 2011 to 2012 and has remained on a relatively constant increase ever since. During the 2014 holiday season, 13 cases of fictitious pickups were reported in the United States totaling over $2.2 million in lost cargo.
While there isn't a national repository of theft data, several groups collect and share information on cargo theft, including FreightWatch International and CargoNet, which carriers can monitor to stay aware
of trends.
Penske Logistics joined the CargoNet network in 2014. "We joined CargoNet to provide us with greater visibility across different states and regions of the United States," said Aaron Henderson, Penske's director of loss prevention. "It allows us to better identify areas that require additional security and when a theft does take place we're able to move quickly to recover the assets."
FreightWatch said partners within the supply chain could reduce the risk of theft by taking a proactive approach to cargo security. "Awareness of the threat is integral. Exercising proper due diligence when sourcing carriers is essential," the agency said in its report.
3PL best practices cargo theft commercial truck drivers commercial truck leasing commercial truck rental freight full service leasing logistics supply chain third-party logistics transportation transportation management truck drivers trucking
Increased Supply Chain Awareness Protects Valuable Cargo
With cargo theft on the rise, parties all across the supply chain are working together to protect goods by coordinating pick-up times, sharing information and embracing new technology.
While there isn't a national source of theft data, several groups do collect and share information on cargo theft.
In 2012, the Supply Chain - Information Sharing and Analysis Center (SC-ISAC) recorded 947 relevant theft incidents, up from 727 recorded in 2011. The center attributes the jump to both increased theft and increased reporting.
"Penske Logistics has taken steps to mitigate the risk of cargo theft," said Aaron Henderson, Penske Logistics director of loss prevention. "We do this by training our drivers, utilizing technology and security devices and by networking with law enforcement."
In some industries, supply chain partners are working together to time pick-ups and deliveries in a way that can reduce risk. For example, some areas try not to release freight on Thursday for a Tuesday delivery when it is only a two-day drive.
Distribution centers and warehouses need to pay particular attention to security on three-day weekends and holidays when thefts typically increase. Many are turning to verified alarms, which use video to confirm a break-in. Warehouses should use an alarm that is not integrated with the main alarm.
If a break-in occurs, and the thieves defeat the system, the non-integrated system will be set off. Thieves will try numerous times to set the alarm so the police stop coming, getting them to think it's a false alarm. Thieves then get into the location and disable the alarm, allowing plenty of time to steal that company's goods.
With a verified motion-activated alarm, the location can capture the thieves in real time, then contact the police and say it isn't a false alarm.
Sharing information and staying current on trends can further increase security. In 2012 there was an increase in fictitious pickups where criminal trucking companies were assigned a load from a broker board and would show up with the proper paperwork.
When hiring a trucking company, shippers should verify that the carrier is legitimate, how long they've been in business and their insurance information. A good way to confirm coverage is to call the insurance company and verify it is a client and how long it has been in business.
In addition, proper management of inventory inside a warehouse or distribution center can reduce internal employee theft.
Properly tracking inventory and conducting periodic audits can discourage internal thieves. Simple strategies, such as using clear trash bags, can keep employees from dropping products in the trash, then retrieving them from outside trash containers.
Increased supply chain awareness protects valuable cargo (from the Penske blog): http://t.co/Z9QtisftPg
— Penske Transportation Solutions (@Penske Transportation Solutions) 1363958558.0
3PL best practices cargo theft commercial truck drivers commercial truck leasing commercial truck rental dedicated contract carriage distribution center management transportation transportation management trucking
Transportation Carriers Work to Mitigate Cargo Theft
Cargo theft continues to increase throughout the U.S. and carriers are responding by training drivers, embracing tracking technology and sharing information to protect valuable loads.
While no one fleet can be 100 percent secure, there are ways to manage the process and have security throughout the operation.
"We regard all cargo as valuable," said Aaron Henderson, Penske Logistics director of loss prevention.
"When we begin working with new customers, security and inventory controls serve as part of the process," Henderson continued. "We want to put in the level of protection that is needed right out of the gate. We also work to improve upon the level of security as the relationship grows."
The four states that reported the most theft were California, Texas, New Jersey and Georgia.
The way cargo moves across the country and the major trade lanes, wherever there is a bottleneck of cargo, that is where the most thefts tend to occur.
There are even "hot spots" within the states. California has been the top state for cargo theft almost every quarter, and the majority of that cargo related to criminal activity is in the LA Basin. In Texas, the majority of it is in the Dallas/Ft. Worth area.
But carriers hauling loads in states with low theft rates should still stay on high alert for cargo theft.
For example, Tennessee isn't in the top five states, but Memphis isn't a city where you want to leave your truck unattended very long. Utah and Alabama are two states that haven't been on the list before, but are starting to experience a lot of cargo theft.
Risk is also directly associated with the product the carrier is hauling. Metals, food, clothing, and electronics are among the top targets, as well as those hauling pharmaceuticals and consumer electronics to distribution centers. These loads carry a higher risk.
The majority of in-transit thefts occur when the vehicles are left unattended. Drivers should use their anti-theft devices no matter how long they're going to be away. Park it in a location where there is good lighting or under a security camera, and make it less appealing to the thieves.
To help minimize theft, some carriers are requiring their drivers to arrive at their pick-up location rested, with a full tank of fuel and with enough DOT hours to travel 200 miles.
Transportation carriers work to mitigate cargo theft: read it on the Penske blog http://t.co/6bPtVIDL7v
3PL best practices cargo theft commercial truck drivers commercial truck leasing commercial truck rental dedicated contract carriage distribution center management logistics rental truck supply chain third-party logistics transportation transportation management
Risk of Cargo Theft Rising
Cargo theft has been steadily increasing since 2008 and is on track to rise again in 2011. Thieves are becoming more selective and organized, which is adding to the increase.
FreightWatch International, which collects data on thefts, reported that cargo theft rose by 4.1 percent in 2010, to 899 recorded theft incidents, the highest on record. Dan Burges, FreightWatch director, said the total number of thefts this year is on track with 2010 and will likely have a slight uptick by the end of 2011.
While there isn't a national repository of theft data, several groups collect and share information on cargo theft. During the third quarter, the Supply Chain Information Sharing and Analysis Center's (SC-ISAC) recorded 203 incidents, up from the 150 reported incidents in the same quarter last year. Like FreightWatch, SC-ISAC reported that there is an upward trend in the first three quarters for 2011.
Burges said food and beverages and electronics are among the top items thieves are targeting and they typically steal the entire tractor and trailer. While thefts can occur anywhere, the SC-ISAC reports that in 2011, parking in unsecured lots and carrier facilities remain the high-theft areas. Theft rates vary by state - New Jersey, Texas and California are among the states with the highest number of cargo thefts.
Theft rates also vary by the day of the week. FreightWatch reports that 64 percent of cargo is stolen over the weekend and most often discovered missing when drivers return on Sunday or Monday to continue their route.
What's more, cargo theft rates increase an average of 28 percent over long weekends and holidays, which can cause long delays for drivers attempting to deliver loads. Carriers should be especially vigilant over the Thanksgiving holiday, which typically has a high theft rate, Burges said.
Carriers should also work with shippers to ensure drivers aren't sitting with loads over long weekends if it isn't necessary. Drivers should also try to park in well-lit areas and back up to barriers so thieves cannot access the cargo.
To help minimize cargo theft, the Penske security department has implemented a "Cargo Security Requirements" policy. It requires the use of padlocks and King Pin locks. Padlocks are required on all straight trucks containing cargo during a day route, line hall or multi-day runs. King Pin locks are to be affixed to all trailers containing cargo when they are not tethered to a tractor and parked in a non-secure lot.
For more information on how to avoid cargo theft, contact your local Penske representative.
Truck Leasing Logistics Truck Rental
3PL best practices business truck rental cargo theft commercial truck drivers commercial truck leasing commercial truck rental dedicated contract carriage full service leasing logistics safety third-party logistics transportation transportation management truck drivers