5 Ways Businesses Can Reduce Cargo Theft Rates

While you likely do not hear much about it on the news, cargo theft is a rising threat that affects countless companies as well as our nation’s economy and security. The groups who perpetrate these thefts have become increasingly violent and more organized than ever. As a result, the cost of cargo thefts is rising.

The problem impacts every industry, and as criminals become more intelligent and find new ways to secure their targets, business owners must work harder to protect their cargo. Exactly how can businesses reduce cargo theft rates? Let’s examine a few potential ways.

Defining Cargo Theft

Cargo is defined as any commercial shipment that is being moved from its point of origin to its final destination. It may be transported by trucks, rail cars, planes, ships, etc. If it is stolen at any point when in transit, the crime is classified as cargo theft. Cargo theft can happen on the highway, at truck stops and terminals or in storage facilities and warehouses. As long as the theft occurs somewhere between a shipment’s point of origin and its destination, it is considered cargo theft.

Until recently, cargo theft statistics were never listed as a separate reportable category in the Uniform Crime Report, or UCR. Many companies do not report these crimes as a means of avoiding higher insurance rates, bad publicity, embarrassment or damage to their reputation. As a result, the exact amount of money lost each year due to cargo theft is unknown. Experts estimate, however, that cargo thefts result in up to $30 billion in losses annually.

Cargo theft is a huge problem that impacts everyone from big business owners to the consumer purchasing items from the store. Items cost up to 20% more to make up for losses due to cargo theft, and state and local governments miss out on sales tax revenue. Because cargo theft affects virtually everyone, it is important for businesses to be proactive about protecting their shipments. While there is no fail-safe means of protecting every shipment from determined criminals, there are several things you can do to help reduce your chances of falling victim.

Make Use of Technology

Spending money on technology that helps protect loads is never a bad investment. There are several tools on the market that help business owners track stolen vehicles and cargo. If you are not using GPS to monitor the location of your shipments, you are doing your business a disservice.

Geofencing apps are another great way to put GPS tracking to work for your business. These programs notify if a tracked vehicle travels outside of its designated route. In doing so, it alerts you to a potential problem almost immediately. There are also devices that allow you to render a vehicle stationary if you suspect that it has been stolen.

Don’t Forget Low-Tech Security Measures

Things like GPS and devices that allow you to track and shut down vehicles from any location are great, and they should definitely be a part of your company’s security measures. Don’t get so caught up in them, though, that you forget about all the low-tech ways to protect cargo.

Things like king pin locks, padlocks, shipping container security seals, lock bolts, air brake valves and glad hand seals or locks help keep criminals out of your precious corrugated boxes and act as theft deterrents.

Pay Attention to Theft Hot Spots

California reported more cargo thefts than any other state in 2015. Florida, Georgia, New Jersey and Texas are also hot spots for retail theft. When possible, avoid routes that lead through areas that are prone to criminal activity. When cargo is being delivered to or needs to pass through such areas, plan to be there during the daylight hours. Theft is most likely to happen on the weekend, with Friday being the most common day, so try to avoid high-crime areas during these times.

Familiarize yourself with your supply chain partners’ security procedures. Be careful when choosing transportation partners and intermediaries. These companies will likely have control of your shipment until it reaches its final destination, so be sure to only choose those that you can trust.

Carefully Screen Employees and Train Them to Prevent Theft

Unfortunately, inside cargo theft is becoming increasingly common and it may lead to more organized crime. When hiring new employees, in-depth pre-employment screening is vital. Perform a complete background check as well as a criminal records check to minimize your likelihood of hiring unscrupulous employees. If you work with independent owner-operators, make sure they and their employees also submit to extensive background checks.

Training is also extremely important when it comes to preventing cargo theft. Instruct all drivers not to stop for meals or food for at least the first 200 miles after picking up a trailer. Thieves often follow loads when they leave the yard in anticipation of the driver making an early stop. Encouraging your drivers to travel at least 200 miles prior to making a stop helps deter many of these opportunistic thieves who are looking to make a quick score on shipping drums.

Make security a primary element of your business’s culture and encourage everyone involved in the shipping process to be aware of their surroundings. Require them to take steps to avoid theft but remind them that no load is worth sacrificing their own personal safety.

Conduct Periodic Security Audits

Personnel and operations are always changing. Stay on top of those changes and conduct periodic security audits to make sure that your measures are still effective. Criminals are also always finding new ways to steal cargo, so it is crucial to ensure that your security measures are up to fighting the latest theft techniques.

Cargo theft is a serious problem that affects businesses in all industries. The impact is felt by virtually everyone–from high-level suppliers to low-level consumers. While no plan is foolproof, the tips listed above will help you avoid falling victim to this all-too-common crime.