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SUPPLY CHAININTELLIGENCE CENTER

Cargo TheftAnnual ReportUnited States & CanadaIntroductionThe 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 theft data collected in 2018, 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 Security Services 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 a 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. 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

In 2018, the SensiGuard Supply Chain Intelligence Center (SCIC) recorded a total of 592 cargo thefts in the United States: 117 in Q1, 145 in Q2, 159 in Q3, and 171 in Q4. The average value of these thefts was $142,342. These numbers represent a 19% drop in volume and a slight 2% decrease in average value when compared to 2017.

While volume continues to drop, the rate at which it is dropping is slowing. Organized cargo thieves in the United States still present a threat to highly targeted shipments. The continued organization and evolution of their methods mean that the threat of cargo theft will grow in the United States as thieves improve their methods to obtain their desired merchandise as well as avoid detection and capture.

2018

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With an average of 49 reported cargo thefts per month, the United States sustained cargo thefts at a rate of 1.62 per day in 2018. 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 timeframes when comparing them to current totals.

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

• Volume of cargo thefts declined, threat persists

• Electronics claims the most stolen product type for the first time since 2009

• Pilferage rate and value break records for second year in a row

• Continued increase in Miscellaneous thefts, primarily less secured LTL shipments containing targeted merchandise

• Theft volumes in Alabama and Pennsylvania on the rise

• Building & Industrial and Clothing & Shoes values more than doubled

#THEFTS AVG VALUE US$

2014

2015

2016

2017

2018

0

200

400

600

800

1000

U.S.—Cargo Theft by Year and Value2014 – 2018

$0

$50,000

$100,000

$150,000

$200,000

$250,000

Major Trends

2018 saw a continued downward trend in reported cargo theft volume and value. While this may seem to indicate that the threat of cargo theft is waning, it is quite the opposite. Organized cargo thieves have a well formed network of fences and buyers which will frequently place orders for specific merchandise to be obtained, thereby limiting the number of shipments an organized thief is actively targeting.

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. And in so doing, they have shifted focus to other methods and products that provide a lesser chance of capture or disruption, thereby reducing their risk. This can be seen in the continued increase of reported mixed retail loads, or less than truckload (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 before making contact, 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 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 continuing 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 18% of thefts in 2018, the highest on SCIC record for the second year in a row. This represents an 18% increase over 2017’s previous record and an increase of 198% since 2014.

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Facility Theft

Fictitious Pickup

Hijacking

Pilferage

2014

2015

2016

2017

2018

0.00%

5.00%

10.00%

15.00%

20.00%

U.S.—Atypical Cargo Theft Types2014 – 2018

During 2018, the SCIC did not record the use of signal interference devices (jammers) in a cargo theft, which have not been seen since 2014. However, known cargo thieves were apprehended in January in Ohio while in possession of RF jamming devices. The SCIC continues to monitor for any jamming activity related to cargo crime in the United States and other regions of operation. 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

2018 recorded 51% of total theft occurring in the top three states. This is a reduction of 7% from the rate of thefts the top three states accounted for in 2017, which itself was 6% lower than 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 37 states in 2018, up from the 35 recorded in 2017.

California, which logged 26% of total thefts for the year, claimed the top spot for cargo theft again, but with 9% drop in theft rate compared to 2017, which followed a 13% drop from 2016. Texas, steady at number two, recorded 15% of total thefts in 2018, an 8% drop from its 2017 theft rate. Florida, with an increase of 14% over 2017, reclaimed the number three spot from New Jersey with a recorded 11% of the U.S. total. Illinois saw a sharp 72% increase in theft rate and rose from sixth to fourth with 10% of the total, while Georgia rounded out the top five states with 8% of thefts, a reduction of 10% compared to 2017. Tennessee and New Jersey each recorded 4% of total 2018 thefts, falling by 25% and 66%, respectively. Alabama,

not on 2018’s top 10 list of states, recorded a 267% increase, accounting for 3% of the total. Ohio, with 3% of the total in 2018, recorded a rate increase of 27% compared to 2018, while Pennsylvania (2%) rose by 157%.

2018 2017

Cal

iforn

ia

Ohi

o

Texa

s

Flor

ida

Illin

ois

Geo

rgia

Tenn

esse

eN

ew J

erse

y

Alab

ama

Penn

sylv

ania

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

U.S.—Top States for Cargo Theft2017 vs. 2018

The states that top the cargo theft landscape do so 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 under protected 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 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 hotspots of cargo theft activity does increase the level of reporting in these areas. Knowing this, it is reasonable to believe that areas that record little to no cargo theft are likely still experiencing it, but inconsistencies in reporting lead to a lack of properly reported data.

Geographical location at the municipal level is not the only or even the main indicator of cargo theft risk for particular products. Other key factors include access to ports or intermodal hubs, targeted commodity opportunities, typical 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 46% of total Building & Industrial thefts nationwide, and was the top product type within Texas, accounting for 30% of the state’s total. These rates both continue to be higher than what Texas

sensitech.com U.S. & Canada Cargo Theft Annual Report 2018 4

recorded in the previous three years, suggesting the specialization and refinement of cargo theft targeting is in effect.

Other states with disproportionally high thefts within a particular product type include: Alabama with 60% of its thefts coming from Home & Garden (13% of national total); California logging 28% of its thefts from Electronics (37% of the national total) and 12% from Clothing & Shoes; Florida with 13% of its thefts consisting of Auto & Parts; Georgia with 20% of its thefts coming from Home & Garden and 16% from Building & Industrial; Illinois with 23% Electronics and 20% Miscellaneous; Louisiana with 100% of its thefts comprised of Building & Industrial; Nevada with 29% of its thefts being Alcohol; New Jersey with 24% Food & Drinks and 14% Clothing & Shoes; Ohio with 27% of its thefts coming from Miscellaneous; Pennsylvania with 29% each Food & Drinks and Miscellaneous; South Carolina with 56% Auto & Parts; and Tennessee with 27% Home & Garden and 12% Pharmaceuticals.

Cargo Theft by Product Type

For the first time since 2009, Electronics was the most stolen product type for an entire calendar year, rising 33% from 2017 to displace Food & Drinks and Home & Garden and record 20% of the 2018 total. Home & Garden, which took the top spot in 2017, ranked second and recorded a slight drop of 3% to log 16% of total thefts. Food & Drinks, which dropped by 13% form 2017, landed in the third spot with 14% of the total. Miscellaneous shipments, mainly comprised of mixed retail loads, also saw a spike in theft rate, rose 8% to the fourth spot and accounted for 11% of the total. Other product types that saw increases over 2017 theft rates were Alcohol (+33%), Metals (+20%), and Pharmaceuticals (+59%).

U.S.—Cargo Theft by Product Type2018

Electronics 20%Home & Garden 16%Food & Drinks 14%Miscellaneous 11%Building & Industrial 10%Auto & Parts 7%Clothing & Shoes 6%Metals 6%Alcohol 4%Personal Care 3%Pharmaceuticals 2%Tobacco 1%

20%

16%

14%

11%10%

7%

6%

6%

4%

3%

2%1%

Cargo Theft by Product Type: Pharmaceuticals

In 2018, both the number and average value of Pharmaceuticals thefts increased by 44% and 136%, respectively, to land at 2% of total thefts and an average loss value of $286,302. This included zero thefts valued at over $1

million, with 54% of thefts reporting a value. Facility Theft within Pharmaceuticals is 406% more frequent than across all products, accounting for 23% of total Pharmaceutical thefts, the highest rate of any single product type. As Pharmaceuticals are very cost dense, large profits can also be had with relatively small scale thefts, such as Pilferage (15%), 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 measures 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, yet least stolen, products on the road today.

2014

2015

2016

2017

2018

0

2

4

6

8

10

12

14

16

U.S.—Pharmaceutical Thefts byYear and Event Type, 2014 – 2018

Facility Theft

Fictitious Pickup

Hijacking

Pilferage

Theft of Full Truckload

As is usual within the theft of Pharmaceuticals, the subtype Medication was the most often stolen subtype, with 54% of total thefts. The Supplies subtype recorded the highest average value for a subtype at $500,000, while Nutritional recorded a spike in theft rate, jumping 39% to account for 31% of total Pharmaceuticals thefts in 2018.

Cargo Theft by Product Type: Food & Drinks

Food & Drinks, which experienced 82 of 2018’s 592 total cargo thefts (14%), was the most stolen product type year after year from 2010 –2016. 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

sensitech.com U.S. & Canada Cargo Theft Annual Report 2018 5

any given time. California (28%), Florida, and Texas (10% each) were the top three states for Food & Drinks thefts in 2018, and together accounted for 48% of total Food & Drinks theft. The remaining 52% were recorded over 18 other states, making Food & Drinks the most geographically diverse of any single product type.

The most commonly stolen subtypes in this sector were Canned & Dry Goods (22%), Mixed & Miscellaneous (18%), Meats and Seafood (12% each). Nuts recorded the highest average value within Food & Drinks at $126,000.

% OF TOTAL AVG VALUE US$

Can

dy, C

ooki

es&

Snac

ks

Can

ned

& D

ry G

oods

Cof

fee,

Ene

rgy

& Sp

ort D

rinks

Froz

en F

oods

Mea

tsM

ixed

&

Mis

cella

neou

sM

ixed

Loa

d

Nut

sPr

oduc

eSe

afoo

dSo

das,

Jui

ce,

Tea

& W

ater

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

U.S.—Food & Drinks Thefts bySubtype and Value, 2018

$0

$30,000

$60,000

$90,000

$120,000

$150,000

Cargo Theft by Product Type: Electronics

Electronics recorded 20% of total thefts in 2018, and had the fourth highest average loss value at $212,754. California (37%), Georgia, and Texas (12% each) were the top three states for Electronics thefts, together accounting for 61% of total Electronics thefts.

Within the Electronics sector in 2018, 39% of thefts were Televisions & Displays, 25% were Mixed & Miscellaneous, and 11% were Audio & Video. By theft type, Pilferage accounted for 26% of Electronics thefts, Facility Theft accounted for 10% and Fictitious Pickups accounted for a mere 1%.

% OF TOTAL AVG VALUE US$

Audi

o &

Vide

oB

atte

ries

Cam

eras

Net

wor

king

Com

pute

rs

Gam

es, C

onso

les

& Ac

cess

orie

s

Cel

l Pho

nes

&

Acce

ssor

ies

Mix

ed &

Mis

cella

neou

sM

ixed

Loa

dO

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, 2018

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

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. In 2018, Home & Garden theft rate dropped by 3% to account for 16% of the total and rank second with an average value of $50,044, a drop of 24%.

Appliances, which accounted for 27% of total Home & Garden thefts, was the most stolen subtype, followed by Furniture & Décor with 18%. California (26%), Texas (15%), and Alabama (13%) were the top states for Home & Garden thefts, totaling 54% of total Home & Garden thefts nationwide. While Theft of Full Truckload (79%) is the most practiced method of theft within Home & Garden, Pilferage (20%) and Fictitious Pickup (1%) were also seen.

% OF TOTAL AVG VALUE US$

Appl

ianc

esB

eddi

ng &

Bat

hC

lean

ing

Supp

lies

& Pr

oduc

tsFu

rnitu

re &

Déc

orKi

tche

n Su

pplie

sLa

wn

& G

arde

nM

isce

llane

ous

Pape

r Pro

duct

sPe

t Sup

plie

sSp

ortin

g G

oods

Toys

& G

ames

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

U.S.—Home & Garden Thefts bySubtype and Value, 2018

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

Cargo Theft by Product and Value

Product Type Avg. Value 2017 Avg. Value 2018

Alcohol $111,488 $141,354

Auto & Parts $104,921 $111,331

Building & Industrial $151,413 $58,285

Clothing & Shoes $354,970 $171,031

Electronics $212,754 $297,332

Food & Drinks $75,622 $67,374

Home & Garden $50,044 $65,998

Metals $62,656 $104,520

Miscellaneous $117,396 $97,694

Personal Care $285,443 $544,935

Pharmaceuticals $286,302 $121,585

Tobacco $148,080 $208,302

Avg. All Products $143,342 $145,832

sensitech.com U.S. & Canada Cargo Theft Annual Report 2018 6

The average loss value per theft incident in 2018 was $142,342, a slight 2% decrease compared to 2017. The average value peaked in 2009 at $554,105 and since then the average loss value has been on a steady decline (with the exception of 2014 seeing a spike to $232,924, a 36% spike from 2013). In 2018 there was only one theft that were valued at $1 million or more, with a value reporting rate of 90%, compared to 2017 in which eighteen thefts were valued at over $1 million and only 75% of incidents reported a value. To have such a drastic drop in the number of ultra-high value thefts while simultaneously recording a significant increase in the rate of thefts reporting a value, yet the overall average value only fluctuated by 2% indicated that a value stasis has likely been achieved. Barring significant new methods or theft trends, the overall annual average value will likely hover around $140-160K.

Some product types that recorded significantly higher average values in 2018 when compared to 2017 were Building & Industrial (+160%), Clothing & Shoes (+108%), Food & Drinks (12%), and Miscellaneous (+20%). Clothing & Shoes ranked as the highest average loss value with $354,970.

% 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

ks

Met

als

Hom

e &

Gar

den

Mis

cella

neou

sPe

rson

al C

are

Phar

mac

eutic

als

Toba

cco

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

U.S.—Cargo Theft byProduct and Value, 2018

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

Cargo Theft by Event Type and 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 2018, 90% of recorded in-transit thefts in which a method was described fell into this category, down from 78% in 2017. Fictitious Pickups (FPU) rose by 4% from 2017 to 2018 to account for 3% of the total. As a result of a number of key arrests, specifically in Southern California, have caused an apparent drop in the volume of these thefts over the past several years. However, the continued masking of these crimes which are not discovered to be an FPU until many months after the initial report of theft, as well as reluctance on the part of victim companies to come forward fearing brand damage, Fictitious Pickups continue to be the most underreported type of large scale cargo theft and are likely occurring at volumes much greater than statistics indicate. The SCIC continues to monitor for reports of compromised, fraudulent or stolen carrier

identities, and the apparent low volume of FPUs does not necessarily reflect a decrease in threat level for this theft type. Of all atypical theft types, only one had a significant geographic deviation from the average, where Florida recorded more Facility Thefts than any other state, accounting for 30% of all Facility Thefts nationwide.

U.S.—Cargo Theft by Event Type2018

Theft of Full Truckload 74%Pilferage 18%Facility Theft 4%Fictitious Pickup 3%Hijacking 1%

74%18%

4%

3%

1%

In 2018, 83% of all thefts with a known location occurred within Unsecured Parking, up from 75% in 2017. The most frequently targeted Unsecured Parking areas were Truck Stops (31%), Public Parking (15%), Drop Lot and Roadside (8% each). Theft from Secured Parking fell from 12% of known locations in 2017 to 9% in 2018.

*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.

Cargo Theft by Date

Cargo theft by month varied greatly in 2018, even when compared to 2017. While 2017’s highest theft rate occurred in November (13%), 2018 saw November tied for fourth place. In 2018, the highest theft rate months were July (11%), December (10%), and October (10%). The month with the lowest theft rate was February (5%), with March (7%) coming next. Hurricanes, fires, and other natural disasters that cause property damage are large drivers in seasonal cargo theft trends. If an affected area is also an area of dense interstate commercial traffic, chances are that cargo theft will spike following a natural disaster where local law enforcement is occupied with recovery efforts.

2018 2017

Janu

ary

Febr

uary

Mar

ch

April

May

June

July

Augu

stSe

ptem

ber

Oct

ober

Nov

embe

rD

ecem

ber

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

U.S.—Cargo Theft by Month2017 vs. 2018

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

sensitech.com U.S. & Canada Cargo Theft Annual Report 2018 7

unattended. Saturdays and Sundays together accounted for 37% of all thefts, a number that climbs to 53% if Fridays are included. 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 2018, 41% each of Facility Thefts and Theft of Full Truckload occurred on a Saturday or Sunday. These percentages increase to 56% each when Fridays are included in the count. Within Fictitious Pickups, 78% occurred on Tuesday, 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.

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

U.S.—Cargo Theft by Day of the Week2018

Sunday

Monday

Tuesday

Wednesday

Thursday

Friday

Saturday

Canada

Historically an area of low reporting, the cargo theft issue in Canada is nonetheless well known. In 2018, the problem continued to gain media coverage (Link), with claims that cargo theft in Canada costs $5 billion annually (Link). 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. However, the SensiGuard SCIC did record an 18% increase in volume in Canada compared to 2017.

In 2018, cargo theft in Canada was recorded in five different provinces, up from two in 2017 but slightly down from 2016’s record of six. The majority of theft occurred in Ontario (77%), centered near the most severe Canadian hotspot of the Greater Toronto Area. Beyond Ontario, 12% of thefts occurred in Quebec, 6% in British Columbia, 3% in Alberta and 2% in New Brunswick.

When examining product types, Food & Drinks is the most stolen product type (40%), likely for the same reasons this product type is popular with thieves in the U.S., namely ease of liquidation and lack or serialization and security. At $264,960, Miscellaneous claimed the highest average loss value, indicating that thieves in Canada are shifting tactics to mirror their U.S. counterparts and target specific merchandise in a lower security setting.

% OF TOTAL AVG VALUE US$

Alco

hol

Bui

ldin

g &

Indu

stria

lC

loth

ing

& Sh

oes

Elec

troni

csFo

od &

Drin

ks

Met

als

Hom

e &

Gar

den

Mis

cella

neou

sPe

rson

al C

are

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

Canada—Cargo Theft byProduct and Value, 2018

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

sensitech.com U.S. & Canada Cargo Theft Annual Report 2018 8

Also worth noting, Canada did record some atypical theft types in 2018 despite Theft of Full Truckload being the favored method with 92% of total thefts. Facility Thefts accounted for 5% of Canadian cargo theft in 2018, with Fictitious Pickup accounting for the remaining 3%. While no Pilferage events were reported in 2018, it is highly unlikely that they did not occur. To the contrary, Canada is likely experiencing or will soon experience a surge in high value Pilferage that began over a year ago 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.

Conclusion

As volumes and values continue to change, the organized cargo thief is still shifting tactics to evade capture, as evidenced by the rise in atypical theft types such as Pilferage and targeting of lower security product types such as Miscellaneous.

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 or low security will not be the determining factors 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: securelpm@sensitech.com

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.

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1-800-843-8367 • +1-978-927-7033 • Fax: +1-978-921-2112 • securelpm@sensitech.com

@sensitech7 Feb 2019

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 2018, 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 9001:2015 company, headquartered in Beverly, Mass., with about 40 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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