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sensitech.com Formerly known as FreightWatch International SUPPLY CHAIN INTELLIGENCE CENTER Cargo Theft Annual Report United States & Canada Introduction The SensiGuard Supply Chain Intelligence Center (SCIC) actively tracks and records cargo theft activity around the globe, categorizing stolen loads under twelve different product types, and tracking by date, location, Modus Operandi (M.O.), value, and specific product. This report summarizes the United States and Canada theft data collected in 2017, and analyzes trends derived from database content, law enforcement information, and industry personnel. It also draws on observations by personnel in the field. It is inherent that the reader understands that any cargo theft report is an indirect representation of the overall cargo theft footprint; it is not a direct reflection. SensiGuard records only those cargo thefts reported by reliable sources, such as transportation security councils, insurance companies and law enforcement organizations. While this does not result in the 100% capture of incidents, it provides a sufficient cross section of cargo thefts and allows the SCIC to identify trends and deliver in-depth, accurate analysis of the scope of cargo theft in the United States and Canada. Additionally, the SCIC only records incidents involving the theft of cargo, not standalone conveyances such as trailers, containers or bobtail tractors. In an effort to refine available intelligence, Last-Mile Courier thefts have been removed from the following charts and analysis, as this is a completely different form of cargo theft, with highly distinct criminal elements, M.O.s and security measures. Unless otherwise specified, the remainder of this report focuses on large-scale cargo thefts such as Theft of Full Truckload, Fictitious Pickups, Hijacking, Pilferage, and Facility Thefts, preserving the data and trends of thefts affecting full truckloads. Executive Summary SensiGuard recorded 649 cargo thefts throughout the United States in 2017: 146 in Q1, 132 in Q2, 177 in Q3 and 194 in Q4. The average value of these thefts was $146,063. These numbers represent a 15% drop in volume and a very slight (0.01%) increase in average value when compared to 2016. While volume continues to drop, thieves in the United States still present a threat to highly desired shipments. The continued organization and evolution of their methods mean that the threat of cargo theft continues to grow in the United States as thieves broaden their geographical areas of operation and improve their methods to avoid detection and capture. 2017

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Page 1: Cargo Theft Annual Report INTELLIGENCE ENTER FreightWatch ... · Cargo Theft Annual Report United States & Canada Introduction The SensiGuard ™ Supply Chain Intelligence Center

sensitech.com

Formerly known asFreightWatch International

SUPPLY CHAININTELLIGENCE CENTER

Cargo TheftAnnual ReportUnited States & Canada

IntroductionThe SensiGuard™ Supply Chain Intelligence Center (SCIC) actively tracks and records cargo theft activity around the globe, categorizing stolen loads under twelve different product types, and tracking by date, location, Modus Operandi (M.O.), value, and specific product. This report summarizes the United States and Canada theft data collected in 2017, and analyzes trends derived from database content, law enforcement information, and industry personnel. It also draws on observations by personnel in the field.

It is inherent that the reader understands that any cargo theft report is an indirect representation of the overall cargo theft footprint; it is not a direct reflection. SensiGuard records only those cargo thefts reported by reliable sources, such as transportation security councils, insurance companies and law enforcement organizations. While this does not result in the 100% capture of incidents, it provides a sufficient cross section of cargo thefts and allows the SCIC to identify trends and deliver in-depth, accurate analysis of the scope of cargo theft in the United States and Canada. Additionally, the SCIC only records incidents involving the theft of cargo, not standalone conveyances such as trailers, containers or bobtail tractors.

In an effort to refine available intelligence, Last-Mile Courier thefts have been removed from the following charts and analysis, as this is a completely different form of cargo theft, with highly distinct criminal elements, M.O.s and security measures. Unless otherwise specified, the remainder of this report focuses on large-scale cargo thefts such as Theft of Full Truckload, Fictitious Pickups, Hijacking, Pilferage, and Facility Thefts, preserving the data and trends of thefts affecting full truckloads.

Executive Summary

SensiGuard recorded 649 cargo thefts throughout the United States in 2017: 146 in Q1, 132 in Q2, 177 in Q3 and 194 in Q4. The average value of these thefts was $146,063. These numbers represent a 15% drop in volume and a very slight (0.01%) increase in average value when compared to 2016.

While volume continues to drop, thieves in the United States still present a threat to highly desired shipments. The continued organization and evolution of their methods mean that the threat of cargo theft continues to grow in the United States as thieves broaden their geographical areas of operation and improve their methods to avoid detection and capture.

2017

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With an average of 54 reported cargo thefts per month, the United States sustained cargo thefts at a rate of about two per day in 2017. Overall, the United States is ranked as HIGH threat level for cargo thefts on the SCIC five point risk scale, which ascends from LOW to MODERATE, ELEVATED, HIGH and finally to SEVERE.

It should be noted that delays in incident reporting typically cause measurable increases in theft volumes in the weeks following publication of SCIC reports. As such, the most recent totals for the year are expected to rise above those recorded thus far. It is the SCIC practice to use updated theft numbers for past time frames when comparing them to current totals.

Some of the most notable trends covered in this report are as follows:

• Average loss value remained steady, volume of cargo thefts declined, threat persists.

• Increase in Miscellaneous thefts, primarily less secured LTL (Less than Truckload) shipments containing targeted merchandise.

• Record breaking Pilferage theft rate, utilized as intelligence gathering while obtaining cargo.

• Natural disasters prompt a spike in thefts in affected areas.

• Theft volumes in Georgia and Tennessee are on the rise.

• Personal Care value more than triples.

# THEFTS AVG VALUE US$

2013

2014

2015

2016

2017

0

200

400

600

800

1000

U.S. — Cargo Theft byYear and Value, 2013 – 2017

$0

$50,000

$100,000

$150,000

$200,000

$250,000

Major Trends

While 2017 continued the downward trend in reported cargo thefts, this does not indicate a decline in cargo theft risk in the U.S., but rather that organized cargo thieves are honing in on shipments that they know can be fenced easily, or target products that have been “ordered” by grey and black market distributors. Coupled with the average loss value remaining steady, this points

to thieves refining their methods to reduce chance of capture or the need to abandon the shipment due to law enforcement pursuit. While this has led to a drop in reported thefts, there may be another reason for the decline in reported numbers.

Organized thieves in the U.S. have long utilized the “risk vs reward” calculation when targeting cargo. As such, shifting focus to other methods and products that provide a lesser chance of capture or disruption, thieves can reduce their risk. This can be seen in the increase of reported mixed retail load, or LTL thefts. These shipments are typically a mix of product destined for a brick and mortar, retail store.

Diligent and organized thieves can still utilize their criminal network to identify the contents of these loads, which if they contain desired products, typically have less security measures in place than a dedicated trailer of one high value/targeted product. Often times the loss to any single owner on these loads may be too low to trigger a police report or insurance claim, which hinders the awareness of the issue and allows the thieves the ability to operate in relative obscurity. Several cases or pallets of easily acquired, targeted merchandise has enough potential value to a thief to discourage a riskier, albeit more profitable, dedicated trailer full of like product that carries much more risk of failure or capture, especially considering the value of the information gained in such a pursuit.

This trend is also evident with the rise of large scale Pilferage events. Thieves have learned that valuable intelligence can be gathered while obtaining high value merchandise by penetrating a trailer, stealing some of the product, and then drawing back to see what (if any) response occurs. Pilferage accounted for 15% of thefts in 2017, the highest on SCIC record. This represents a 40% increase over 2016 and a 107% increase since 2013.

Facility Theft

Fictitious Pickup

Hijacking

Pilferage

Theft of Full Truckload / Collusion

2013

2014

2015

2016

2017

0.00%

4.00%

8.00%

12.00%

16.00%

U.S. — Atypical Cargo Theft Types2013–2017

During 2017, the SCIC did not record the use of signal interference devices (jammers) which have not been seen since 2014. The SCIC monitors for any jamming activity related to cargo crime in the United States and other regions of operation.

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sensitech.com U.S. & Canada Cargo Theft Annual Report 2017 3

While the jamming threat in the U.S. remains low today, SCIC continues to see frequent jamming activity in non-U.S. regions. SensiGuard has programs and technology in place to mitigate the jamming risk. With the availability of jamming technology in the U.S., it is reasonable to anticipate the expanded use of jamming by criminals. This would drive the need to implement countermeasures in the U.S. to mitigate the jamming risk.

Cargo Theft by State

The top three states accounted for 55% of total recorded theft in 2017. This is a reduction of 6% from the rate of thefts the top three states accounted for in 2016. Overall, geographical hotspots have tended to remain largely unchanged, though there were definite product and theft type focus shifts in these areas. Cargo theft was recorded in 35 states in 2017, down from the 39 recorded in 2016.

California, which logged 28% of total thefts for the year, claimed the top spot for cargo theft again, but with a 13% drop in theft rate compared to 2016. Texas, steady at number two, recorded 16% of total thefts in 2017, a slight 2% increase from its 2016 theft rate. New Jersey, still at number three, saw its theft rate increase by 6% to 11% of the U.S. total. Florida, for the second year, claimed the fourth spot with 9% of the total, almost even with its theft rate in 2016. Georgia, which jumped back into the fifth rank in 2017, accounted for 9% of thefts, a surge of 76% over its 2016 theft rate. Illinois, displaced by Florida’s rise, placed sixth with 6% of thefts, and Tennessee held steady at number seven with 6% of thefts, a rise of 73%. Positions eight, nine, and ten did not appear on the top ten list in 2016, but Ohio (2%), Indiana (2%), and Washington (1%) each saw significant swells compared to their 2016 theft rate rising by 413%, 69% and 177%, respectively.

2017 2016

Texa

s

Tenn

esse

e

Cal

iforn

ia

Flor

ida

Geo

rgia

New

Jer

sey

Illin

ois

Ohi

o

Indi

ana

Was

hing

ton

0

50

100

150

200

250

300

U.S. — Top States for Cargo Theft2017

The states that top the cargo theft landscape are largely due to a few important factors such as the presence of large seaports, whose high volume of cargo allow for many information gathering

opportunities for organized thieves and the confluence of major interstates, which offer target rich and underprotected truck stops. One other major factor is the presence of large, well-organized cargo theft rings operating in multiple states, such as those based in Southern Florida and California. While data proves that cargo thieves are more than willing to travel across several states or more to seize targeted cargo, low-hanging fruit near to home is rarely passed up.

In addition, the presence of Cargo Theft Task Forces in areas known to be problematic for cargo theft does increase the level of reporting in these areas. Knowing this, it is reasonable to believe that areas that record no cargo theft are likely still experiencing it, but inconsistencies in reporting geographical location at the municipal level is not the only or even the main indicator of cargo theft risk. Other key factors include access to ports or intermodal hubs, targeted commodity opportunities, usual DOT rest areas, known security measures in place, availability to move the product through illegitimate markets, etc. However, at a state level, location does indicate what product types are more at risk for cargo theft within their borders due to what types of cargo are at higher concentration within the state.

For example, some product types and subtypes have very strong state specific trends. Examples include Building & Industrial, which recorded more thefts in Texas than any other state to account for 43% of total Building & Industrial thefts nationwide, and was the top product type within Texas, accounting for 31% of the state’s total. These rates both continue to be higher than what Texas recorded in the previous two years, suggesting the specialization and refinement of cargo theft targeting. Texas has other product types with unusually high theft rates; for example, Home & Garden logged 29% of total Texas thefts, which accounted for 29% of total Home & Garden thefts nationwide.

Other states with disproportionally high thefts within a particular product type include: California logging 21% of its thefts from Electronics (40% of the national total) and 15% from Clothing & Shoes, Florida with 29% of its thefts consisting of Food & Drinks, Georgia with a dominant 26% of its thefts coming from Electronics and 22% from Food & Drinks, Illinois with 15% each Auto & Parts and Building & Industrial as well as 10% Metals, New Jersey with 13% Clothing & Shoes and 16% Miscellaneous, North Carolina with 50% of its thefts coming from Personal Care, Ohio with 23% each Auto & Parts and Metals, and Tennessee with 24% Electronics.

Cargo Theft by Product Value

The average loss value per theft incident was $146,063, a very slight increase over 2016. The average value peaked in 2009 at $554,105. Since 2009, the average loss value had been on a steady decline with the exception of 2014 seeing a spike to $232,924 (a 36% spike from 2013). In 2017 there were 18 thefts that were valued at $1 million or more, with a value reporting rate

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of 75%. When compared with 2016 (16 thefts over $1 million and a reporting rate of 91%), it appears as though value reporting has dropped off in 2017. Despite that, the still high reporting rate means it can be safely assumed that the average value is indeed holding steady for the moment.

Some product types that recorded significantly higher average values in 2017 when compared to 2016 were Alcohol (+131%), Auto & Parts (+20%), Building & Industrial (+29%), Miscellaneous (+30%), Personal Care (+209%), and Tobacco (+15%). Personal Care ranked as the highest average loss value with $544,935.

% OF TOTAL AVG VALUE US$

Alco

hol

Auto

& P

arts

Bui

ldin

g &

Indu

stria

lC

loth

ing

& Sh

oes

Elec

troni

csFo

od &

Drin

ksH

ome

& G

arde

n

Met

als

Mis

cella

neou

sPe

rson

al C

are

Phar

mac

eutic

als

Toba

cco

0.00%

3.00%

6.00%

9.00%

12.00%

15.00%

18.00%

U.S. — Cargo Theft byProduct and Value, 2017

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

Cargo Theft by Date

Cargo theft by month varied greatly in 2017 when compared to 2016. While 2016’s highest theft rate occurred in February (12%), 2017 saw February in ninth place. In 2017, the highest theft rate months were November (13%), October (11%), and July (10%). The United States experienced the costliest Hurricane season on record in 2017, causing record amounts of damage (Source: New York Times). This could have been the cause of cargo theft increases in affected areas that caused October and November to be the two busiest months for cargo theft in 2017. The month with the lowest theft rate was June (5%), with March (6%) coming next. Hurricanes Harvey and Irma are likely one of the driving forces behind a fourth quarter surge in volume.

2017 % of Total 2016 % of Total

Jan

Feb

Mar

Apr

May Jun

Jul

Aug

Sep

Oct

Dec

Nov

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

U.S. — Cargo Theft by Month2016–2017

Consistent with historical trends, weekend days persist as the most popular days of the week among thieves, as they are the times when In-Transit cargo is more likely to be stationary and unattended. Similarly, Facility Thefts tend to occur over the weekend while most employees are off work and minimal security is in place. This also delays the discovery of a theft and allows thieves greater time to escape before law enforcement is notified. In 2017, 33% of Facility Thefts and 40% of Theft of Full Truckload occurred on a Saturday or Sunday. These percentages increase to 46% and 55%, respectively, when Fridays are included in the count. Within Fictitious Pickups, 63% occurred on Wednesday, Thursday or Friday, which all allow for the maximum amount of lead time for the criminal before the theft is discovered, depending on the length of the trip. Additionally, no Fictitious Pickups were recorded on Mondays in 2017.

0.00% 5.00% 10.00% 15.00% 20.00% 25.00%

U.S. — Cargo Theft by Day2017

Sunday

Monday

Tuesday

Wednesday

Thursday

Friday

Saturday

Product TypeAvg. Value U.S.

2017Avg. Value U.S.

2016

Alcohol $141,354 $61,320

Auto & Parts $111,331 $92,655

Building & Industrial $58,285 $45,327

Clothing & Shoes $174,715 $234,761

Electronics $299,294 $367,031

Food & Drinks $67,374 $70,042

Home & Garden $65,998 $92,166

Metals $104,520 $115,312

Miscellaneous $97,694 $74,999

Personal Care $544,935 $176,548

Pharmaceuticals $121,585 $265,209

Tobacco $208,302 $181,103

All Products $146,063 $146,042

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Cargo Theft by Product TypeFor the first time in eight years, Food & Drinks was not the most stolen product type, recording 16% of the 2017 total (-14% from 2016) and landing in second place. Instead, accounting for 17% of all reported cargo theft, Home & Garden took the top spot in 2017, a 16% increase over its 2016 rate. The third rank for 2017 is held by Electronics, which accounted for 15% of total thefts, with a slight (-4%) drop from 2016. Building & Industrial, likely spurred by intensely damaging hurricanes, rose by 12% to place as the fourth most stolen product type (12% of total). Miscellaneous shipments, mainly comprised of mixed retail loads, also saw a spike in theft rate, rising 37% to land at the fifth spot and account for 10% of the total. Other product types that saw increases over 2016 theft rates were Auto & Parts which increased by 4%, and Metals which rose by 26%.

U.S. — Cargo Theft byProduct Type, 2017

Home & Garden 17%Food & Drinks 16%Electronics 15%Building & Industrial 12%Miscellaneous 10%Auto & Parts 8%Clothing & Shoes 8%Metals 5%Personal Care 4%Alcohol 3%Pharmaceuticals 1%Tobacco 1%

17%

16%

15%

12%10%

8%

8%

5%

4%

1%3%

1%

Cargo Theft by Product Type: Pharmaceuticals

In 2017, both the number and average value of Pharmaceuticals thefts dropped by 57% and 54%, respectively. This included zero thefts valued at over $1 million, with 67% of thefts reporting a value. Pilferage within Pharmaceuticals is 49% more frequent than

across all products, accounting for 22% of total Pharmaceutical thefts, a rate second only to Electronics. As Pharmaceuticals are very cost dense, large profits can be had with relatively small scale thefts, such as Pilferage, while also serving as an advanced intelligence gathering method for criminals. This allows for verification of the suspected contents of a load as well as determining if any security countermeasures are in place. The pharmaceutical industry has taken great strides to secure their supply chain, and their efforts are evident in the fact that it is one of the most desired, but least stolen, products on the road today.

Facility Theft

Fictitious Pickup

Hijacking

Pilferage

Theft of Full Truckload / Collusion

2013

2014

2015

2016

2017

0

5

10

15

20

25

30

U.S. — Pharmaceutical Thefts byYear and Event Type, 2013–2017

As is usual within the theft of Pharmaceuticals, the subtype Medication was both the most often stolen subtype, with 44% of total thefts. The Nutritional subtype recorded the highest average value for a subtype at $161,254, while Supplies saw a spike in theft rate, jumping 133% to 33% of total Pharmaceuticals thefts in 2017.

Cargo Theft by Product Type: Food & Drinks

Food & Drinks, which experienced 104 of 2017’s 649 total cargo thefts (16%), has, until 2017, been the most stolen product type since 2010. This is due in part to the ease of sale of consumable items on the illicit market as they are not uniquely serialized which

would allow tracking of individual items as well as the prolific amount of shipments of Food & Drinks on the road at any given time. California, Florida, and New Jersey were the top three states for Food & Drinks thefts in 2017, and together accounted for 56% of total Food & Drinks theft. The most commonly stolen subtypes in this sector were Meats (21%), Canned & Dry Goods (20%) and Mixed & Miscellaneous (14%). Seafood recorded the highest average value within Food & Drinks at $169,927.

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sensitech.com U.S. & Canada Cargo Theft Annual Report 2017 6

% OF TOTAL AVG VALUE US$

Can

dy, C

ooki

es&

Snac

ksC

anne

d &

Dry

Goo

dsC

offe

e, E

nerg

y

& Sp

ort D

rinks

Dai

ry &

Egg

sFr

ozen

Foo

ds

Mea

tsM

ixed

&

Mis

cella

neou

sPr

oduc

e

Seaf

ood

Soda

s, J

uice

,

Tea

& W

ater

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

U.S. — Food & Drinks Thefts bySubtype and Value, 2017

$0

$50,000

$100,000

$150,000

$200,000

Cargo Theft by Product Type: Electronics

Electronics recorded 15% of total thefts in 2017, and had the second highest average loss value at $299,294. California, Georgia, and Tennessee were the top three states for Electronics thefts, together accounting for 62% of total Electronics thefts. The remaining 38% of thefts were spread out among 16

other states, making Electronics tied with Food & Drinks as the most geographically diverse product type.

Within the Electronics sector in 2017, 35% of thefts were Televisions & Displays, 22% were Mixed & Miscellaneous, and 9% each were Audio & Video and Computers. By theft type, Pilferage accounted for 31% of Electronics thefts, the highest Pilferage rate of any single product type. Facility Theft accounted for 4% and Fictitious Pickups accounted for 7%.

% OF TOTAL AVG VALUE US$

Audi

o &

Vide

o

Bat

terie

sC

ell P

hone

s

& Ac

cess

orie

sC

ompu

ters

Gam

es, C

onso

les

& Ac

cess

orie

sM

ixed

&

Mis

cella

neou

sO

f�ce

Ele

ctro

nics

Softw

are,

Com

pone

nts

& Pe

riphe

rals

Tabl

ets

& E-

read

ers

Tele

visi

ons

& D

ispl

ays

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

U.S. — Electronics Thefts bySubtype and Value, 2017

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

Cargo Theft by Product Type: Home & Garden

In 2017, Home & Garden was the most stolen product type, accounting for 17% of the total and an average value of $65,998. Appliances, which accounted for 41% of total Home & Garden thefts, was the most stolen subtype

and was a major driver in the rise of Home & Garden numbers in 2017, rising 60% over the 2015 theft rate for Appliances.

Texas, California, and New Jersey were the top states for Home & Garden thefts, totaling 66% of total Home & Garden thefts nationwide. While Theft of Full Truckload is the most practiced method of theft within Home & Garden at 91% of the total, Pilferage (7%), Facility Theft (1%), and Fictitious Pickups (1%) were also seen.

% OF TOTAL AVG VALUE US$

Appl

ianc

esB

eddi

ng &

Bat

h

Cle

anin

g Su

pplie

s &

Prod

ucts

Furn

iture

& D

écor

Kitc

hen

Supp

lies

Law

n &

Gar

den

Mix

ed &

Mis

cella

neou

sM

ixed

Loa

dPa

per P

rodu

cts

Pet S

uppl

ies

Spor

ting

Goo

ds

Tool

sTo

ys &

Gam

es

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

U.S. — Home & Garden Thefts bySubtype and Value, 2017

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

Cargo Theft by Theft Type & Location

Due to risk of capture, cargo thieves in the United States largely tend to target loaded trailers and containers that are stationary and unattended. In 2017, 78% of recorded In-Transit thefts in which a method was described fell into this category, down from 81% in 2016. Fictitious Pickups (FPU) dropped by 39% from 2016 to 2017 to account for 3% of the total, which could be due to several factors: a result of the number of arrests, specifically in Southern California; the reporting of this type of theft shifting from incident theft reporting to identity victim reporting; or the continued masking of the crime not discovered to be an FPU until many months after initiation of the investigation and/or initial reporting of the incident. The SCIC continues to monitor for reports of compromised, fraudulent or stolen carrier identities, and the apparent drop in FPUs does not necessarily reflect a proportional drop in threat level for this theft type. Additionally, it is worth noting that 26% of Fictitious

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Pickups were perpetrated in California, which continues to be the area that experiences the highest concentration of this theft type. Pilferage, previously identified as a method for thieves to gather intelligence on security measures as well as obtain smaller amounts of product, rose by 40% from 2016 to account for 15% of total thefts. These thefts were most prolific in Tennessee (21%), Georgia (19%), and California (17%). Pilferage also primarily targeted Electronics (31%), Food & Drinks (17%), and Miscellaneous (11%), the latter likely for the purposes of load content verification to advance efforts for Theft of Full Truckloads of the same.

0% 10% 20% 30% 40% 50% 60% 70% 80%

U.S. — Cargo Theft by Event Type2017

Theft of Full Truckload

Pilferage

Hijacking

Fictitious Pickup

Facility Theft

In 2017, 75% of all thefts with a known location occurred within Unsecured Parking. The most frequently targeted Unsecured Parking areas were Public Parking (24%), Truck Stops (19%), and Drop Lots (17%). Theft from Secured Parking rose from 9% of known locations in 2016 to 12% in 2017.

*There is no general consensus within the industry as to the definition of “secured parking”, and this designation is assigned only when the theft report indicates that the location was a secured parking area.

Canada

Historically an area of low reporting, the cargo theft issue in Canada is nonetheless well known. In 2017, the problem continued to gain media coverage (Source: CFTR-AM, Toronto), with claims that cargo theft in Canada costs $5 billion annually. Despite that, industry reporting still trails behind that of the United States. Organized cargo thieves in Canada are just as sophisticated as they are in the United States, often utilizing the same methods and criminal networks not only to target products, but also to liquidate them.

In 2017, cargo theft in Canada was only reported in two different provinces, down from six in 2016 (the most ever recorded in a single year by the SCIC). The majority of theft occurred in Ontario (97%), centered near the most severe Canadian hotspot of the Greater Toronto Area. The remaining 3% of thefts were recorded in Quebec.

When examining product types, Food & Drinks is the most stolen product type (44%), likely for the same reasons as in the U.S., namely ease of liquidation and lack or serialization and security. At $254,066, Electronics claimed the highest average loss value, indicating that thieves are actively targeting high end consumer electronics.

% OF TOTAL AVG VALUE US$

Alco

hol

Auto

& P

arts

Bui

ldin

g &

Indu

stria

lC

loth

ing

& Sh

oes

Elec

troni

csFo

od &

Drin

ksH

ome

& G

arde

n

Met

als

Mis

cella

neou

sPe

rson

al C

are

Phar

mac

eutic

als

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

Canada — Cargo Theft byProduct and Value, 2017

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

Also worth noting, Canada recorded a variety of atypical theft types in 2017, despite Theft of Full Truckload being the favored method with 86% of total thefts. Pilferage logged 4% of the total, Facility Theft accounted for 7% (+111% form 2016) and Fictitious Pickup accounted for 2%. The presence of these types of thefts illustrate that the Canadian cargo criminal is just as sophisticated and organized as those in the United States.

While industry incident reporting lags behind, cargo crime in Canada is likely to rise until cargo theft specific legislation is passed and better data is available to understand the problem.

Page 8: Cargo Theft Annual Report INTELLIGENCE ENTER FreightWatch ... · Cargo Theft Annual Report United States & Canada Introduction The SensiGuard ™ Supply Chain Intelligence Center

The information contained in this document is the property of Sensitech Inc. This information may not be sold, licensed, or used for business development in any capacity without the prior written

consent of Sensitech Inc. Sensitech Inc. encourages recipients to use this information for cargo theft prevention activities and to share this information in its entirety with colleagues who may also benefit

in a theft prevention capacity.

sensitech.com

Sensitech Inc. • Global Headquarters • 800 Cummings Center • Suite 258X • Beverly, MA 01915-6197

1-800-843-8367 • +1-978-927-7033 • Fax: +1-978-921-2112 • [email protected]

@sensitech1 Feb 2018

Conclusion

As cargo thieves continually adapt to the evolving logistical security landscape, new threats will take shape in the form of new theft methods, and new targeted products in new regions. High value alone will not be the determining factor in theft risk to cargo as thieves will adjust to the increased risk and modify their efforts accordingly.

For more information on Sensitech or our logistics security services please contact: [email protected]

About SensiGuard Security Services DataUnless otherwise noted, the theft statistics in this assessment are derived from data collected by the SensiGuard Supply Chain Intelligence Center and other information collected from reliable sources. The Intelligence Center captures cargo theft and supply

chain risk data from numerous sources across the globe. These include, but are not limited to, the databases of SensiGuard Security Services, its customers, law enforcement agencies, industry organizations, insurance industry sources, and news reports. This report offers an analysis of the data collected during 2017, providing insight into cargo theft and supply chain risk across the globe.

Please note that cargo theft goes largely unreported; as such, total theft figures for a particular country or region are likely higher than stated. In addition, global cargo theft circumstances and risks change, sometimes frequently and quickly, and in ways that may make the facts and opinions expressed here no longer valid. Therefore, the extent to which organizations rely on the information provided in this assessment should be solely at their discretion.

About SensiGuard Security ServicesSensiGuard Security Services is a leading provider of global logistics security services, offering tracking and monitoring solutions that provide organizations with cargo security, transparency and supply chain integrity from origin to destination. Using real-time visibility technology and layered solutions, organizations can actively monitor their cargo anywhere in the global supply chain to mitigate the risks associated with theft, spoilage, counterfeiting and more. With operations across the globe, SensiGuard is uniquely positioned to deliver services regionally across diverse supply chains.

SensiGuard Security Services is part of Sensitech Inc., a leading provider of supply chain visibility solutions. Sensitech is focused on delivering supply chain visibility solutions that track, monitor and protect products for global leaders in the food, life sciences, consumer goods, and industrial markets. Our solutions are focused in three key areas: quality and compliance, supply chain security, and logistics performance management. Quality and compliance solutions address temperature-sensitive, complex supply chains focused on delivering the highest quality possible, while our supply chain security solutions help to mitigate risks associated with theft, diversion and chain of custody. Sensitech’s logistics performance solutions deliver origin-to-destination, real-time transparency to any in-transit journey. Sensitech Inc. is an ISO 9001:2008 company, headquartered in Beverly, Mass., with more than 35 sales, service and distribution locations around the world. Sensitech is a part of UTC Climate, Controls & Security, a unit of United Technologies Corp., a leading provider to the aerospace and building systems industries worldwide.

More information about Sensitech is available at www.sensitech.com

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