|
Cargo Security: Facing the Growing Problem of Loss and Threat
By L. H. Gray
In the golden age of trucking, cargo theft was straightforward and simple. Open the trailer doors and get the goods. A driver could lose a side of beef while sitting at a red light in Brooklyn or several boxes of shoes while parked at a warehouse overnight. An insider could load a trailer with fraudulent containers and hock a shipment of leather goods. For the most part, cargo theft was a costly nuisance to the transporter and a hit-or-miss jackpot for the thief.
Inside employees still dip their hands in the pot, but some turn their profits by becoming informers. Shipment information on high-value loads is passed along to thieving rings lying in wait to steal trailers laden with costly perfume, electronics and pharmaceuticals. Increased technology and shared load information over the Internet provide high-tech thieves another method to track down desirable goods.
Computers, cell phones, designer apparel, jewelry and music CDs are some of the things that can be sold quickly on the street. For the thief, the profit is high and the risk is low. Usually no harm comes to anyone and, even if caught, cargo theft is a fourth degree property crime resulting in minimum sentencing.
It is estimated that losses from cargo theft each year reach 30-50 billion dollars globally and 12 billion dollars in the U. S., and it's on the rise. Some believe drug smugglers have turned to cargo theft because of the low risk. Goods can be snatched and sold without a trace, and cargo theft often goes unreported. Companies accept a certain amount of loss from theft and figure reporting the crime and pursuing the criminal is not worth the effort. A drug company that reports when a shipment of medicine has been stolen would make the five o'clock news, losing credibility with customers and a possible decrease in sales.
Beyond the monetary loss lie greater dangers. When cargo is accessible, goods can be tampered with. Illegal drugs or weaponry can be hid onboard for transport. Even illegal immigrants have made their way into the U.S. in cargo containers and trailers. The most disturbing facet of cargo crime, though, is the possibility of a terrorist placing a dangerous package on a truck, or taking control of a hazardous hauler and using the truck as a weapon.
In today's environment, unsecured, unprotected loads provide opportunities for thieves to steal, smugglers to transport illegal goods, and terrorists to turn trucks into weapons. But even with the threat of loss or harm, not all carriers are jumping into proactive cargo security. Taking the first steps in improving security can be overwhelming and those that do choose to do something may find their methods ineffective.
Realize the Need
Erik Hoffer is president of CGM Security Solutions, Inc., Somerset, New Jersey, a manufacturer and distributor of indicative security seals as well as indicative damage protection and authentication products. He also serves as Chairman of Education for the National Cargo Security Council.
"The average company that ships high value goods is not doing anything," said Hoffer. "A lot of them who should be protecting assets in the supply chain are not. They're not spending the money because they do not think it will happen to them."
Companies also consider some loss an acceptable part of doing business. They simply swallow the loss and go on. "No one wants to quantify their losses and how much has been stolen," said Hoffer. Reporting a stolen load to the insurance company can be like shooting themselves in the foot -- recovering initial loss, but paying higher premiums in the end.
Transportation services are often bought for their value and speed, whoever's cheapest and fastest, under the constant crunch of making money and saving time. The carrier transporting the goods, however, may have no ownership in the cargo and may have little interest in protecting it with money out of his pocket. "If you don't own it, you don't care," said Hoffer. But the pressure may be on as shippers seek out carriers with procedures in place to protect their cargo.
There is a shift occurring in concern over cargo security. Basic worry over monetary loss is being compounded with worry over terrorism. Even carriers that have seen little need in the past for cargo security realize that the future of all transportation may include tracking technologies, electronic seals, biometrics and digital imaging?whatever works to not only deter thieves, but to thwart terrorists.
"A company's major risk was to protect their assets," said Hoffer. "Now they are worried about something being put into the container instead of something being taken out. Cargo theft is now combined with economic terrorism."
Most attention has focused on sight-level security: gating and lighting yards, locking warehouses, providing identification cards to employees and installing security cameras. After 9-11 drivers were cautioned to keep quiet about the content of their trailers, to park in safe places and to report any suspicious activities.
Though steps have been made to secure facilities, cargo continues to be vulnerable in transit and it's vulnerability that puts everyone at risk for loss. "There are massive amounts of goods being moved by trucks and containers," said Hoffer. "You have to recognize that there are vulnerabilities."
Products and Services
When a carrier wishes to implement security measures but doesn't know where to begin, there are companies that provide risk assessment services. These companies review facilities and cargo operations to find vulnerabilities. They can assist in developing security programs, help determine which technology to use, and provide training to employees on how to use security products and follow security procedures.
Manufacturers and distributors can answer questions on exactly how different products work and the costs associated with them. Many products indicate when trailer doors have been opened, like seals and tape, but do not barricade the load. Alarms and alert systems notify the driver if anyone is attempting to tamper with the doors. Tracking systems provide live information on the truck's movements and some systems can remotely disable a truck in the case of a security breach.
Hoffer warns against a false sense of security. Some products were very effective when they were invented, but no longer are. "King pin locks, rear door locks and padlocks are ineffective. You might as well put nothing on," he said. "It only takes a few seconds to get around them." Thieves packing a few tools and know-how can dissemble locks quickly, like using a dent puller and a screwdriver to pull out a king pin lock.
To keep thieves out and goods in, Hoffer recommends a cable or locking bar that goes from one keeper bar to another to maintain the locked position. Glad hand locks are also good deterrents to theft. "You have to brake the connection where the air goes in," said Hoffer. "It inhibits the trailer from being stolen." There are also tiny devices that go into the airline of the trailer so the truck can be left idling, but the air can be taken out.
Emerging technologies hold promise, but have not been widely used or perfected yet. Some technologies coming up on the horizon are: non-intrusive inspections of containers and trailers by using x-rays or gamma rays; geofencing to create an invisible 'fenced' area for trucks to operate within that notifies the company if the vehicle has passed outside of the designated area; and electronic seals for storing shipment information and recording if the container has been tampered with. These technologies face challenges of keeping freight moving without significant slowdowns, overcoming the costs and difficulties of implementation, and surviving adverse circumstances like salt water and weather elements.
There are security devices of every gamut to protect boxes, bundled pallets and entire truckloads. There are countermeasures to be taken in better screening of employees, creating and publicizing prosecution plans for in-house thieves, and educating workers how to recognize and report suspicious activities. Choosing the most suitable technology and procedures lies in the carrier's assessment of its own vulnerability.
"Recognize your threat, who the enemy is and what his skill is," said Hoffer. "Put something in front of him that he can't break through."
|