sensitech.com

SUPPLY CHAININTELLIGENCE CENTER

Cargo Theft ReportBrazil

Introduction

Brazil continues to experience a drop in the number of cargo theft cases. This trend holds true for most Brazilian states. Together, São Paulo and Rio de Janeiro continue to account for more than eighty percent of theft in the country. However, both have shown significant declines in recent quarters.

Q3-2019

State of São Paulo

Since Q3-2017, the state of São Paulo has seen a steady decline in the number of cargo thefts. A total of 1,699 cases were reported across the state in Q3-2019, representing a 20% drop compared to Q3-2018. Year-to-date (January through September), the state experienced a 21% drop compared to the same period last year.

São Paulo—Thefts Q3-2018 vs. Q3-2019

Source: São Paulo Department of Public Security

Region Q3-2018 Q3-2019Percentage

Change

Capital 1,005 919 -9%

Greater São Paulo 578 360 -38%

Araçatuba 1 1 0

Bauru 10 10 0

Campinas 155 114 -26%

Piracicaba 121 94 -22%

Presidente Prudente 3 7 133%

Ribeirão Preto 35 42 20%

Santos 122 78 -36%

São José do Rio Preto 7 3 -57%

São José dos Campos 53 44 -17%

Sorocaba 36 27 -25%

State Total 2,126 1,699 -20%

sensitech.com 2 Cargo Theft Report: Brazil Q3-2019

Only two regions showed an increase in the number of cargo thefts this past quarter: Presidente Prudente (133%) and Ribeirão Preto (20%). It is worth noting that the Ribeirão Preto region was the only one across the entire state that saw an increase in the number of cases in Q3-2019.

2017 2018 2019

0

200

400

600

800

1000

1200

Jan

Feb

Mar

Apr

May Jun

Jul

Aug

Sep

Oct

Nov

Dec

Brazil—Cargo Theft by MonthSão Paulo, 2017– 2019

State of Rio de Janeiro

In Q3-2019, the state of Rio de Janeiro registered 1,745 cases of cargo theft, a 12% drop compared to Q3-2018. This was the sixth consecutive quarter of a decline in theft. Year-to-date, the state registered an 18% decline.

2018 2019

0

200

400

600

800

1000

Brazil—Cargo Theft by RegionRio de Janeiro, Q3-2018 & Q3-2019

Cap

ital

Flum

inen

seLo

wla

nds

Nite

rói &

Lake

s R

egio

nSo

uth

Flum

inen

se

Nor

th &

Nor

thea

stFl

umin

ense

Hig

hlan

d R

egio

n

At 7%, only Baixada Fluminense saw an increase in the number of thefts.

The BR-101 highway at São Gonçalo has been a critical region for quite some time. According to the Rio de Janeiro Public Safety Institute, cargo theft on the BR-101 highway was down 59% in the first nine months of this year when compared to the same period last year. The decline is due to a task force comprised of the Civil, Military, and Federal Highway police, which (since this past January) have been patrolling a 21 km stretch of BR-101 North that cuts through the municipality of São Gonçalo. Therefore, the same model of policing and enforcement will be expanded to other federal highways (Dutra, BR-040, and BR-101 South).

sensitech.com 3 Cargo Theft Report: Brazil Q3-2019

2017 2018 2019

0

300

600

900

1200

1500Ja

n

Feb

Mar

Apr

May Jun

Jul

Aug

Sep

Oct

Nov

Dec

Brazil—Cargo Theft by MonthRio de Janeiro, 2017– 2019

General Considerations

The most commonly stolen products in Q3-2019 were Miscellaneous, Food & Drinks, Tobacco, and Electronics. Most thefts took place in urban areas, in the morning, and involved Hijacking. The highways with the highest numbers of incidents in Brazil were Anhanguera and Dutra.

Brazil—Cargo Theft by Product TypeQ3-2019

Miscellaneous 26%Food & Drinks 21%Tobacco 21%Electronics 8%Agricultural 8%Alcohol 5%Pharmaceuticals 2%Fuel 2%Auto & Parts 2%Home & Garden 1%Building & Industrial 1%Metals 1%Personal Care 1%Clothing & Shoes 1%

26%

21%

21%

8%

8%

5%

2%2%2%

1%1%

1%1%

1%

Brazil—Cargo Theft by Event TypeQ3-2019

Hijacking 90%Attempted Hijacking 4%Facility Theft 4%Theft by Driver 1%Fraud 1%

90%

4%

4%

1%1%

Brazil—Cargo Theft by LocationQ3-2019

Urban Area 65%Highway 23%Unknown 9%Company Premises 3%

65%

9%

23%

3%

Brazil—Cargo Theft by Time of DayQ3-2019

Morning 51%Afternoon 20%Unknown 16%Evening 13%

51%

20%

13%

16%

Brazil—Cargo Theft byLocation Subtype, Q3-2019

Street 62%Roadway 19%Unknown 8%Warehouse/DC 4%Gas Station 3%Destination 2%Others 2%

62%

4%

3%

8%

19%

2%2%

sensitech.com 4 Cargo Theft Report: Brazil Q3-2019

Final Considerations

Despite a general downward trend, major thefts have recently taken place at airports around the country. Between July and October, three of Brazil’s largest airports (Guarulhos, Viracopos and Galeão) saw incidents that demonstrated a high level of planning, organization, privileged information, and heavy firepower from the gangs. In July, a 760 kg gold shipment was stolen at Guarulhos airport; on 17 October, a shipment of cash was stolen from Viracopos Airport (Campinas); and on 19 October, LATAM’s warehouse was invaded at Galeão Airport (Rio de Janeiro), with Electronics and other products being stolen. Airports are places where gangs see the opportunity to make big profits in one single heist, due to the high value of In-Transit cargo. Clearly, security in these places has not been efficient enough to deter these criminals. Risks are present at all stages of the logistics chain. Careful evaluation of each of these phases is required.

sensitech.com

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

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

@sensitech7 Nov 2019

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.

About SensiGuard Security Services Data

Unless 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 the Q3-2019, 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 Services

SensiGuard 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.

In Brazil, SensiGuard Security Services has been innovating, and brought the EFS Program (Electronic Freight Security) to the local market, helping to ensure the security of your cargo, based on a modern vision combining technology and processes, thereby expanding on the concept of security. The program works with the incremental use of technology, replacing the use of guards, an activity that exposes the guards potential risks, and also exposes the Shipper to the risk of labor claims. EFS minimizes the risk of financial losses throughout the entire operation. The EFS Program values merchandise security, and the human aspect involved, enabling the Shipper to reduce direct and indirect costs.

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 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

To register to receive alerts, bulletins and reports, please visit the SensiGuard Supply Chain Intelligence Center