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Cargo theft is an equal opportunity crime. Today, we find street gangs, organized crime, carrier employees, and individuals and groups all actively involved in the trade of stolen freight. They are becoming more organized, using increasingly sophisticated technology, and relying more and more on inside information (i.e., employee involvement).
Scope
Whether it’s 5,000 pounds of fish, a load of personal computers, or a full truckload of pharmaceuticals, loaded trailers containing virtually any type of cargo are potential targets for theft. Some estimates place annual U.S. cargo losses at $10 billion, and as the value of cargo increases, the incidence of cargo theft is on the rise — forcing many motor carriers and insurance providers to focus on ways to stem their losses.
Costs from cargo theft include not only the actual value of the cargo itself, but also:
- Increased insurance premiums,
- Loss of profit,
- Loss of customers and business opportunity,
- Interruption of freight distribution, and
- Increased overall supply-chain costs.
Regulatory citations
- None
Key definitions
- Armed robberies: Armed theft from warehouses, truck terminals, and professional truck drivers are the most common form of cargo theft and fall into three basic categories:
- Theft of loaded vehicles from a trucking facility;
- Theft of a vehicle after thieves compel a driver to make an unplanned stop; or
- Theft of a vehicle when a truck driver stops (at a signal light, truck stop, rest area, etc.).
- Burglaries and break-ins: Burglaries and break-ins most often occur at transportation facilities, commercial industrial parks, and intermodal railroad yards.
- Counterfeit paperwork and fraud: Generally, this method is used by independent contractors who transport chassis/containers to and from container terminals and intermodal railyards. The driver presents counterfeit paperwork to the security personnel and ultimately makes off with an entire container of valuable product.
- Grab and runs: Often used by thieves who have inside information about a load of expensive, high-tech merchandise. Involves criminals breaking into a stopped truck and off-loading as much property as possible before the truck driver returns.
Summary of requirements
The Department of Justice estimates that 80 percent of cargo thefts occur while the freight is in transit.
What can you do? Load security begins with knowing exactly who is picking up a given load. The key to this is proper and adequate carrier/shipper communication. Before any load is picked up, motor carriers should share, at a minimum, the following information with shippers:
- The name of the driver scheduled to pick up a given load,
- The carrier-assigned vehicle (tractor or truck) number, and
- The carrier-assigned trailer number (if applicable).
Have drivers supervise the loading process, when possible. From a purely cargo-claims-prevention perspective, drivers (and motor carriers) need to make sure that the right quantity of the right product is put on the trailer. In addition, drivers need to ensure that damaged or leaking cargo is not loaded.
Loading security tips for drivers. The following tips are provided to help give drivers a better understanding of what to look for when supervising any loading activity:
- Pre-trip. Instruct drivers to conduct a thorough pre-trip inspection of their equipment prior to entering the shipper’s facility, to inspect — for safety as well as foreign material and debris.
- Unauthorized cargo. Prohibit drivers from accepting or allowing any unauthorized or unscheduled box, carton, package, or other cargo (regardless of size) to be loaded on or in their trailers. Drivers should view all requests to load unauthorized or unscheduled packages as highly suspicious. If this should happen, drivers should notify their carriers, responsible shipping personnel, and/or the appropriate authorities immediately.
- Cargo inspection. Drivers should be sure to get exactly what they sign for. Drivers should inspect all cargo before it is loaded. The cargo should be free of any visual damage. Once loaded, the cargo should be properly secured from shifting and falling.
- Loading. When possible, drivers should be instructed to load the most valuable cargo into the nose of the trailer and as far away from the doors as possible, as a means of better protecting it from thieves.
- Documentation. All load-related documentation should be thoroughly reviewed and verified by the driver. Any discrepancies need to be reported and resolved before the paperwork is signed or the trailer is sealed.
- Suspicious activity. Drivers need to be especially alert when leaving a shipper because the vast majority of cargo thefts and hijackings occur within a few miles of the load’s point of origin. Before leaving any shipper, drivers should be trained to:
- Secure the trailer doors with a heavy-duty padlock and/or trailer door seal.
- Keep tractor doors locked and windows rolled up until out on a major road or highway.
- Keep a watchful eye out. If drivers suspect they are being followed, they should contact their carriers or the authorities immediately.
- Be especially alert near signal-regulated highway on- and off-ramps. These are prime vehicle hijack areas.
- Communication. Require drivers to check in at regular intervals throughout the day (including when loaded and ready to leave a shipper). The driver should report all load-related information, as well as any other company-required information such as trailer seal numbers, hours-of-service data, estimated time(s) of arrival, etc.
- Identification. Before leaving the shipper, drivers should have available a list of information on them such as the vehicle identification numbers (VIN) of the tractor and trailer, vehicle license numbers, and insurance information. This list will help law enforcement in the event of a vehicle theft.