Fleets Turn to New Protective Measures as Thieves Become More Sophisticated

This story appears in the Nov. 23 print edition of Transport Topics.

Security experts say cargo thieves are becoming more selective and organized, which is resulting in a more substantial average loss per incident. Now, fleets are fighting back with anti-theft devices, diligent drivers and increased collaboration.

“Cargo theft isn’t just a couple of people who have fallen on hard times. The real challenge is the organized crews that are out there. They work very hard and are very diligent,” said Walt Fountain, director of enterprise security for truckload carrier Schneider National Inc.

Security provider FreightWatch International, Austin, Texas, said there were 74 reported major cargo theft incidents during June — the most recent data available — well beyond the average of 48 to 50 thefts per month recorded throughout the prior two years. It also said the average loss per incident has risen to $2.1 million in 2009, from $1.1 million last year.

“There is a lot of targeting by cargo thieves of specific name-brand products. They don’t just want a cell phone. They want a Blackberry or an iPhone,” said Dan Burges, FreightWatch’s director.

The FBI estimates cargo theft in the United States accounts for about $10 billion in direct merchandise losses annually.

Last year, Schneider National, its supply chain partners and law enforcement met to deal with security theft. As a result, the company implemented several initiatives

to prevent losses. Year-to-date, Schneider said it has cut overall cargo theft 33% and reduced consumer electronic thefts 67%.

Fountain said as a result of the meeting, the company realized thieves were identifying cargo by how trailers and containers were sealed, so they changed the process.

“We recognized clearly that the thieves weren’t browsing. You had over a mile-long train with several hundred boxes or containers and you have three that got hit and the only three were [loaded with] consumer electronics,” he said.

Schneider also encourages drivers to back against fixed barriers when parking.

“That is the No. 1 thing a driver can do to prevent a partial theft,” Fountain said.

Curt Shewchuk, senior director and chief security officer of global security for Con-way Inc., said, “Criminals want truckloads of what they know.”

Fifteen regional security managers at Con-way, No. 6 on the Transport Topics 100 list of the largest for-hire carriers in the United States and Canada, visit each facility annually to assess risks and develop customized security programs. Programs could include conducting employee training and hardening supply chains, warehouses or service centers.

Barry Tarnef, a marine loss control specialist for Chubb Marine Underwriters, said covert tracking devices placed in the trailer or cargo are one of the most effective tools for minimizing loss. They are about the size of a cell phone and use Global Positioning System or advanced cell phone technology to track location.

“As long as drivers find out quickly that the load has been lost, they can set something into play,” Tarnef said.

FreightWatch sells covert devices for about $500 each and has a 24-hour monitoring service to track the units, which can be reused.

The covert devices sold by Transport Security, Waconia, Minn., run $300 to $600 depending on the lifespan of the batteries in the units. Batteries last anywhere from 10 to 30 days and can be recharged. Users define routes and receive alerts if trucks leave them.

FreightWatch said it has recovered each of the 18 customer loads that have been stolen, usually within an hour and half.

Len Gangi, vice president of Comodo Enterprise Security Solutions, Jersey City, N.J., advises fleets to protect their electronic communications as well.

“A lot of people don’t really appreciate how unsecure e-mail really is,” he said. “Can you imagine if someone intercepted at the highest level information on a shipment?”

Even low-tech options are gaining in popularity. Tony Shupin, president of security tape and label manufacturer Allied Security Innovations Inc., said tamper evident tape sales have increase as more shippers seal and identify their packages.

The tape, which starts at $25 for a 180-foot roll, can be customized for identification purposes.

“We create and design the product so it is bottom printed, so the writing or logos can’t be wiped off or altered,” Shupin said.

Sales of locks at Transport Security are increasing as well.

“We tell our customers to take a layered approach. There is nothing that is 100% foolproof, so it is good to have a mix and match of technology and hardware,” said Nick Erdmann, business development manager for Transport Security. The locks start at $40 and are resistant to physical attacks.

Con-way goes back to the basics and asks drivers to take certain precautions, such as not stopping for at least 100 miles after picking up a high-value load and not leaving a truck idling. Randy Mullett, Con-way’s vice president of government affairs, said the vast majority of thefts are a result of drivers not following procedures. 

Statistics compiled throughout the past four years by the Chubb Group of Insurance Cos. identified truck stops and rest areas as the most targeted locations for cargo thefts, accounting for more than one-third of all incidents. Modal yards and unsecured locations — such as drop lots and motel and restaurant parking lots — are next.

Most losses occur over the weekend, which Tarnef attributed to shippers that request Monday morning deliveries.

“The trucking company has to pick it up on Friday and now they have to figure out where they store it,” he said. Tarnef recommends fleets and shippers work together to reduce dwell times.

In examining its processes, Schneider decided to grant greater visibility to all members of the supply chain, including manufacturers, truckers and rail operators.

“If the load is sitting, waiting for the next player to pick it up, the longer it sits and the greater target it becomes,” Fountain said.

Burges told TT that unattended trailers are prime targets, but said that it is more common for thieves to steal a tractor and a trailer.

Christina Dukeman, a spokesman for Love’s Travel Stops and Country Stores, said fleets rarely request additional security measures.

“The No. 1 request we get, in fact, is anti-cargo security, which is, can they drop their trailer and leave it,” she said.

Love’s tracks thefts and notifies management and law enforcement of any high-frequency areas. “In many cases, we are in a position to know if there’s a potential theft ring, and we can work with area truck stops and law enforcement to assist them in their investigations,” Dukeman said.

Con-way’s Shewchuk and Schneider’s Fountain both said they share theft information with competitors to help deter and solve thefts.

Shewchuk said, “We realize that even though we’re competitors in the market, we benefit from sharing risk.”

Cargo thieves are very mobile, which adds to the need for good communication. “It is important to collaborate, because where the cargo is stolen isn’t where it ends up,” Tarnef added.