Cargo Theft Still ‘On the Rise’
Cargo theft continues to be a problem for the freight transportation industry and could cause insurance premiums to increase, two experts said.
“Cargo theft is on the rise,” said Michael Lawrence, transportation sales manager for Roemer Insurance in Toledo, Ohio. “And it’s surprising what is being stolen. It used to be liquor and cigarettes — items that can be easily resold. Now it’s anything, like a load of lumber.”
Lawrence said he has not yet seen an overall increase in insurance rates because of an increase in cargo theft, although a survey of insurance brokers by The Marquis Agency found that premiums for motor truck cargo and warehouse insurance had declined the least among all forms of transportation insurance over the past year.
Meanwhile, results of a new study shed some light on the nature and extent of cargo theft.
There were 299 cases of cargo theft reported in 2008, based on reports from 1,500 users at nearly 600 organizations in 42 states that are part of the Supply Chain Information Sharing and Analysis Center.
Texas had the largest number of cargo thefts, 68, followed by Georgia, Tennessee, California and Florida, according to a report published by LoJack Supply Chain Integrity.
“This study reveals cargo theft is a serious, ongoing problem that is very profitable for professional thieves and very costly for organizations throughout the supply chain,” said Robert Furtado, chief executive officer of LoJack SCI.
Most thefts reported occurred at truck stops and parking lots, including drop yards and trucking terminal facilities.
Weekends are when most thefts occur, with 168 incidents during this time frame. Monday is the next busiest period with 46. Friday had the least number of incidents at 23.
Food was the cargo most often stolen, with 13% of incidents reported, followed by pharmaceutical/medical and building supplies, both of which came in at 12%.
The high percentage of building supplies thefts may relate in part to the rise in copper prices and the lack of oversight on the origins of scrap materials.
Recently enacted laws addressing ownership of materials for recyclers may help to reduce this current theft trend, according to the report.
“Food and drugs are essentials that are always a target of thieves,” Furtado said. “That may explain why those items topped the list, while ‘nice to have’ items like music, movies and software came in at only 1%.
“The bottom line is that whether the economy is good or challenging, it is critical for a company to protect its cargo.”
The Supply Chain ISAC is one of a number of councils set up after the 9/11 terrorist attacks to coordinate efforts by public agencies and private industry to improve the security of commercial infrastructure.
By Daniel P. Bearth
Senior Features Writer
