Protecting Your Supply Chain Against Cargo Theft
Cargo theft is a significant problem, costing the retail industry an estimated $100 billion annually. With over half of theft incidents occurring during transit, it is crucial for logistics professionals to take proactive measures to safeguard their supply chains, regardless of their industry or business size. To minimize the risk of cargo theft, here are the practices employed by today's leading professionals in logistics:
Identifying High-Risk Shipments
While it is impossible to completely eliminate all risks, certain products and locations are more susceptible to theft:
Intermodal hubs are prime targets for thieves, especially during transfers between trucks, trains, or boats. California, with its numerous ports involved in intermodal transit, experienced a staggering 41% increase in supply chain theft in 2022. However, the issue extends beyond the west coast, as Georgia also faces a significant threat due to the bustling Port of Savannah.
Household appliances, furniture, tools, toys, and electronics were the most frequently stolen products in 2022. California observed a rise in thefts of computer and green energy components, given its status as the primary logistics hub for these items in the United States.
The food and beverage industry has witnessed a concerning surge in cargo theft, with the FBI reporting annual losses of around $30 billion.
Combatting Fictitious Pickups
In the coming months, there may be increased reports of "fictitious pickups," especially in busy hubs near Chicago, South Florida, and Los Angeles. These specialized forms of cargo theft involve document forgery and internet-based fraud, allowing criminals to store truckloads of goods for extended periods and discreetly sell them off. Stay informed about these incidents and remain vigilant.
Preventing Cargo Theft: Best Practices
Security and logistics experts concur on the following preventive measures:
Minimize stops within 300 miles of the origin sites. By reducing unnecessary stops, drivers decrease the chances of encountering theft while on the road.
Establish "red zones" and instruct drivers to avoid poorly lit, isolated gravel parking lots. These areas pose higher risks due to their low visibility and lack of population.
Enhance human security in warehouses. Although it may incur additional costs, employing security guards to monitor warehouses round the clock significantly reduces the risk of theft, including internal theft.
Improve digital security. Utilize visibility technology to track cargo in real time, preventing internal theft and organized crime takeover. Install geodata in trucks, trailers, and employ load alerts that activate when a vehicle arrives or departs from a destination.
Utilize physical security devices. Employ air cuff locks, landing gear locks on trailers, and locks on rear doors to deter theft attempts.
Foster an atmosphere of security awareness. While it may not be advisable to divulge all security details publicly, it is wise to inform employees and potential threats that shipments and storage spaces are under active monitoring.
Exercise heightened vigilance during holidays. Major cities and transportation hubs often experience an uptick in thefts during holidays. In Texas, California, Florida, and Tennessee, the Fourth of July weekend sees the highest number of thefts compared to any other day of the year. Similarly, Christmas, Easter, and Thanksgiving periods tend to have increased theft activity.
Collaborate with a reputable third-party logistics company (3PL). Select a 3PL provider with robust security measures and experience in dealing with the risk of cargo theft. Inquire about their physical and technological security protocols to ensure comprehensive protection.
By implementing these strategies, you can strengthen the security of your supply chain and mitigate the risks associated with cargo theft. Stay proactive and prioritize the safety of your shipments and business operations.
