Issue: 1 · Summer 2011

Faking it! Focus on fraud

Updates from Americas, Asia & EMEA

Goals of the World Wide Council

IIS quarterly analysis

New members & certifi ed sites

Three regions, one goal in the fight against

cargo crime

Superior intelligence in the fi ght against cargo crime

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WORLD WIDE COUNCIL

Today, the Association has over 600 company members globally with a market capitalisation of over US$1.6 trillion and annual sales in excess of $910 billion following the launch of TAPA EMEA in 1999 and TAPA Asia in 2000.

Although every region is autonomous, with each having its own constitution, Board of Directors or Management Committee, ownership of its regional activities and programs, budgets and membership, fundamentally the Americas, EMEA and Asia regions all share the same aims and objectives, namely:

The Transported Asset Protection Association (TAPA) is a unique forum

that unites global manufacturers, logistics providers, freight carriers, law enforcement agencies and other stakeholders with the common aim of reducing losses from international supply chains.

Vision

TAPA affects the reduction of losses in the manufacture, transportation and distribution of high value products.

Mission

To establish and maintain best practice asset protection for industry and related logistics and freight service providers.

Purpose

Provide workable solutions for issues that are experienced industry-wide by member companies. This includes, sharing experience and processes that are not proprietary to member companies, improving overall security effectiveness in targeted areas, and incorporating these processes across the industry to reduce losses due to theft.

To assist the regional Associations in their goal to represent members on a global basis, and to ensure that there is continuity to global programs and standards, TAPA is governed by its World Wide Council (WWC). This is normally made up of the elected Chairs and Vice

Piecing together the global picture

TAPA has come a long way globally since its formation in 1997 in the United States by a group of high tech companies that were all victims of cargo crime.

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Chairs from the regions and they are regularly joined by other elected regional Board or Management Committee members for their additional expertise on the various items being addressed globally.

The WWC currently meet monthly via a telephone conference call and face-to-face at least once a year at one of the regional conferences. The secretariat for the WWC rotates around the regions, currently resting with TAPA EMEA, and the next WWC F2F meeting will be held in conjunction with the TAPA EMEA Q4 Conference in Rome in October.

Not surprisingly, the WWC deal with a packed agenda over two-days of meetings examining global initiatives such as FSR, the new TSR, TACSS, recommendations from the regions, the Change Control Board, and signing off and agreeing documents which impact TAPA members globally. In addition to its current workload, the WWC keep all existing programs under constant review and discuss new initiatives which may affect the supply chain industry, such as ocean and rail cargo security, the impact of AEO or C-TPAT on the global market.

During its last F2F in Nashville USA in November, the WWC confi rmed fi ve key agenda points for 2011:

1 The WWC reached general agreement that there will be one TAPA newsletter worldwide

2 The WWC reached general agreement that it will issue press releases on a global basis concerning global issues involving TAPA

3 TACSS will be rolled out in draft form in all three regions

4 The WWC reached agreement that there will be no global memberships. Membership will remain regional

5 The WWC council agreed that efforts would be made to create a global IIS data reporting system with a goal of issuing the fi rst global report on cargo crime in Q1 2011

In addition to these issues, the World Wide Council have worked on the revision and introduction of a certifi cation and compliance programme for TSR.

Alan Spear, Chairman of TAPA Americas, said: “The concept of Global TAPA has undergone a signifi cant re-defi nition in the past

year or so with the WWC recognising fi rst that there are really only three votes on the WWC (one for each region), and that critical issues need to be voted positively by all three if at all possible. Each region of TAPA is a free standing independent corporation and must make its own internal decisions in response to the needs and requests of its membership but at the same time, regional decisions should be consistent with the Global TAPA concept so that no one region goes off on its own without consideration of the worldwide implications.

“We have found the WWC to be particularly useful in building our understanding of the priorities and needs of the other regions and for discussion of what we can do to share ideas and resources. Through these discussions, we have built closer relationships with our partner regions and have been able to coordinate our business relationships with vendors to expand our purchasing ability and make the products they generate more consistent globally.”

Thorsten Neumann, TAPA EMEA’s Chairman, added: “The WWC conference meetings are the best opportunity to align activities,

discuss our regional and global strategy and our way to a ONE TAPA approach to ensure we deliver added value for our global members. Furthermore, it is an excellent way to connect the dots, share best in class projects and services and discuss open challenges, issues and future opportunities.

“The main topics we are looking at right now are the creation of one IIS Service globally to ensure that we can analyse the supply chain risk and loss fi gures globally, identify global ‘hot spots’ and compare our regions on a month-by-month perspective. Furthermore, we are aligning our work on the TSR certifi cation programme by defi ning our exact time schedule for the test audits and analysing the lessons learned from the test to ensure a proper global roll-out in January 2012.”

“The WWC provides the opportunity for all three regional Chairs to interact and discuss the progress of TAPA. It creates a consolidated

effort in combating crime that brings great value to the regional membership in the fi ght against global criminal activities by the sharing of information and resources. I would like to see us improve the WWC further by involving more experts from different fi elds, such as I.T and Marketing,“said Ching Eng Leong, Chair of TAPA Asia.

“Regional decisions should be consistent with the Global TAPA concept so that no one region goes off on its own

without consideration of the worldwide implications.”

It creates a consolidated effort in combating crime that brings great value to the regional membership in the fi ght against global criminal activities by the sharing of information and resources.

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SPECIAL REPORT: FAKE HAULIERS/FRAUDULENT PICK-UPS

U.S and Europe see strong increases in cargo crimes involving fraudAlthough theft carried out involving fraud is not a new phenomenon, the number of incidents in this category continued to grow in both the United States and Europe during the fi rst months of 2011, according to FreightWatch International.

In Q1 2011 alone, thefts involving fraud in Europe accounted for 11% of all incidents. This percentage was the highest recorded by the TAPA EMEA IIS in the Fraud category during a quarter. The number of thefts occurring as a result of fraud in the Americas, although still quite low compared with that in the European region, has surged lately. The United States has reported several incidents so far this year.

The increase in cargo theft involving fraud can be attributed in part to the growing level of sophistication among the cargo criminals that are perpetrating these crimes. As more and more shippers use the internet to bid out transportation contracts, organised cargo thieves are exploiting vulnerabilities in the system to win themselves contracts in order to steal loads.

The countries mainly affected by cargo theft gangs using fraudulent means

in Europe are the United Kingdom, France, Germany, Italy, Denmark, the Netherlands, Belgium, Austria, Hungary and Slovakia.

The top US states/regions that have experienced thefts by fraud are Florida, California, the Midwest and New York.

Fraud Scenarios

Creation of fake transportation companies

In this scenario, sophisticated cargo thieves establish a fake transportation company, going so far as to create a company name, website, fake contact information and legitimate-appearing documentation. Then, using this “company,” the thieves subscribe to online bidding, taking great care to ensure their prices are in the low range. After they have secured the contract, their drivers arrive at the cargo pick-up location with all the necessary documents, including such things as registration of trade, transport license and insurance certifi cate (all forged, of course). Once the cargo is loaded and the driver heads down the road, the merchandise simply vanishes. These kinds of thefts usually are discovered either after the intended recipient places a call to inquire as to the whereabouts of the load or the hiring company attempts to track the freight.

Impersonation of real transport companies

Similar to the modus operandi above except in this case the criminals avoid arousing suspicion by using the name and the freight exchange account of a real transportation company. For these thefts, criminals use the access code of

Faking it!

page fi ve

the authentic company in order to subscribe to online bidding and win the contract.As is the case with the fake transportation company, the documentation is provided, the loading is completed normally - and the cargo never reaches its intended destination.

In Europe, carriers from Italy, Slovakia and Bulgaria are the primary victims of theft by this method. According to reports, the Neapolitan mafi a is behind some of these incidents. In the United States, one Armenian criminal gang has been linked to these kinds of thefts.

Fraudulent pick-ups

The difference between this scenario and the previous two is that in this one the cargo criminals take possession of the load simply by providing falsifi ed documents at the pick-up location rather than going through the bother of creating a fake transport company or assuming the name of an existing one. In the fraudulent pick-up scheme, the cargo thieves often pretend to work for a known forwarder when picking up the load and most often use fake or stolen license plates on their trucks.

No clear evidence exists as to how thieves manage to obtain the information ahead of time on how, when and where to collect a specifi c load. In most cases, however, the fake drivers are able to provide what appears to be all the proper documentation, including the order number and any required PIN. In some instances cargo thieves using this scheme have been given electronic keys to access facilities where the loads are stored without fi rst having had to provide basic information or answer questions.

United States/Europe Similarities

a) The creation of fake companies is a shared modus operandi in the United States and Europe. In both regions cargo criminals use online bidding to win transport contracts from brokers or forwarders.

b) Criminals using fake or forged documentation to pick-up loads are seen in both regions.

c) Cargo thieves in both the United States and Europe have been known to impersonate real trucking companies. In the US, forged or stolen identifi cation has been supplied to brokers via the Internet.

United States/Europe Differences

a) Cargo thieves in the US go beyond presenting forged documentation to steal cargo, often using fraudulent credentials to register fake trucking companies with the US Department of Transportation. Some thefts of this nature have occurred in Europe when carriers subcontract transport services.

b) Thieves who use fraud to steal loads in the European region tend to target product types as diverse as Electronics, Food and Beverages, Metals, Tobacco and Non-electronics. In the United States, on the other hand, the main targets are the Food and Beverage and Pharmaceutical product types.

As more and more shippers use the internet to bid out transportation contracts, organised cargo thieves are exploiting vulnerabilities in the

system to win themselves contracts in order to steal loads.

Case Studies• On January 13, 2011, cargo

thieves posing as legitimate hauliers in the United Kingdom made three separate trips to a transportation facility, stealing a load of fl at screen TVs. To successfully perpetrate the thefts the criminals provided what appeared to be authentic documents along with the required PIN code. They also placed fake licence plates on the truck. The loss value was estimated at €378,741 ($493.158).

• In the British city of Southampton on June 7, 2010, a cargo thief stole a load of cigarettes worth over €1.2 million ($1.45 million) from a maritime transportation facility. The thief provided accurate collection details and drove off with the merchandise.

• On April 11, 2011, a freight forwarder in Germany hired what the forwarder believed was a Slovakian carrier to transport a load of copper. The theft was discovered a few days later when the consignee called to inquire about the load. The loss was estimated at €268,500 ($388,815).

• Eight trailers loaded with tomatoes and other produce reportedly were stolen in March 2011 by a fake Miami-based trucking company. The victims were brokers that were contacted through online sites. The loss value around $300,000.

• The Pharmaceutical Cargo Security Consortium reported that a total of eight shipments were stolen by fi ctitious trucking companies over the Easter weekend in the United States. Of the stolen loads, two were classifi ed as pharmaceutical products. The total loss value of the eight shipments was over $1.2 million.

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TAPA Americas

Regulatory updatesFood defense mandate

Since July 1, 2011 food and agriculture companies in the U.S.A. have been mandated by federal law to bring their facilities and supply chains into compliance with a set of security standards intended to help protect the nation’s food supply from deliberate acts of contamination or tampering. This may affect TAPA members, particularly carriers, warehouses and 3PLs as there is a general consensus that the food industry may not be ready for the impact of this change causing them to rely heavily on their supply chain suppliers to help them comply with the new regulations.

100% screening of inbound air cargo

The 9/11 Act requirement to screen all freight on passenger fl ights also applies to international inbound air cargo. TSA is establishing systems to enable industry to achieve this requirement. Last year Assistant Administrator for Transportation Sector Network Management John Sammon messaged this would take place no later than August 2013. Air cargo security incidents since then have resulted in TSA looking at bringing the 100% screening deadline for inbound air cargo forward to December 31st 2011 although there is no further update at this stage.

C-TPAT Program focused on growth and mutual recognition

C-TPAT now has over 10,138 members, with a goal of growing to 40,000 over the next seven years. While there is no discussion in Washington about making C-TPAT mandatory, growth in the program is seen as critical to national security. C-TPAT is working to further its coordination with the TSA, is looking at Air cargo and a possible validation plan for air carriers, and is expanding its communications with international partners who participate in similar programs such as AEO and PIP. Mutual recognition programs with New Zealand, Canada, Jordan, Japan and Korea are already in place and efforts are being made to expand mutual recognition to the EU, China and Mexico, among others.

Priorities for next 3-6 monthsUpdating the highly respected Rand Study on the economic cost and implications of cargo theft

TAPA Americas is following up on the possibility to further study and understand the impact of cargo crime through a potential new study in cooperation with RAND Corporation.

In 1999, RAND joined with the International Electronics Security Group, a predecessor of TAPA, to study the “Economic Costs and Implications of High-Technology Hardware Theft.” Working with a number of major corporations, including IBM, Compaq, Motorola, Hewlett Packard and many others, RAND produced a formal study that concluded, in summary, that the actual cost of theft of high technology cargo was between three and fi ve times the stated value of that cargo. This conclusion became conventional wisdom in the industry and has been widely quoted since.

With the RAND study now 12 years old, and because the supply chain, technology, and the risk of theft are all now recognized as broader and more complex issues, the breakout sessions at T2 discussed the idea of working with RAND to re-visit the study, using TAPA data (unavailable in 1999), expanding the study to EMEA and Asia, and broadening the base from technology to include pharmaceuticals, other high value shipments and various kinds of high tech products. A work group was formed at the TAPA Americas T2 meeting and will continue to meet to defi ne the possible scope of such a study, with the expectation that there will be a meeting in Washington with RAND later this year to build on the concept. We invite both of our partner regions to participate.

Marketing TAPA

One of the breakout sessions at the recent T2 Meeting in New Orleans focused on “Marketing TAPA.” Members discussed the value of TAPA in the industry and how to increase membership while retaining the “working group” feel of the current structure.

Clear objectives were set such as solidifying relationships with related industry groups, boosting sponsorship and marketing opportunities for TAPA member companies, increasing participation in working groups, and leveraging communication through news updates via the new website.

Food Defense & Securing the Food Industry

TAPA Americas is making contact with regulators and corporate representatives concerned with this issue to discuss the possibility of developing a new set of standards, specifi c to the food industry and the FOOD DEFENSE initiative.

RAND produced a formal study that concluded, in summary, that the actual cost of theft of high technology cargo was between three and fi ve times the stated value of that cargo.

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New online capabilitiesTAPA Americas launched its new website in April to provide members with extensive industry research and resources and to help them set and promulgate best-in-class standards for facility security and transport.

New online features and benefi ts include:

• Integrated mapping and route planning features

• Detailed information for certifi ed sites• Improved search features and ex-

panded member descriptions with video, maps and other images

• Enhanced security, including tiered members-only access

• A dynamic events calendar with improved registration features

• Full CMS for administrative updat-ing and control

• An interactive news section with member feedback on articles and research.

Check it out at www.tapaonline.org

Benchmark data on cargo crime

TAPA has engaged in the study of benchmark data for cargo crime for many years but has

not updated the study since 2007. As a part of its contract with TAPA Americas, FreightWatch

International has begun to gather and report on benchmarking data, looking at the experiences of

various kinds of manufacturers, including those in the pharmaceutical and technology sectors. Ron

Greene reported on the initial report at the T2 Meeting and it was decided to extend the study so

that more companies can participate. A further update will be published in due course.

T3 date and location

TAPA Americas’ T3 Meeting is being held on October 25 and 26, 2011 at the Ocasa facility in New York. The general topic of the meeting will be “TAPA and Law Enforcement” and will offer a forum for members to interact with the law enforcement community from various regions as well as participate in practical training exercises in regards to how to better secure your facilities and ensure your vendors are following the procedures you require. Regular updates will be posted on the TAPA Americas website.

US Government targetsRF jammersBy Alan Spear, Chair, TAPA Americas

Stories about jamming technology being used to interfere with tracking devices have been fl oating around in the supply chain

security fi eld for some time but there has been little to support them other than various anecdotal reports.

Now, however, an agency of the US Government has issued the following statement on jamming:

(U//FOUO) Radio frequency (RF) jammers can be used to interfere intentionally with operational channels commonly used by fi rst responders, disrupting vital communications and potentially affecting emergency operations. Different types of RF jammers can target cellular, Wi-Fi, or global positioning system (GPS) signals individually or in combination. First responders should immediately report any instance or indication of jamming activity. Jammers are available commercially at relatively little cost.

While jamming is still not commonly found associated with cargo theft, there have been confi rmed reports of high value loads being

stolen and tracking signals from covert units lost soon thereafter and one story, now confi rmed, of a recovered load found with jammers placed on top of the cargo, thereby interfering with the signals from a covert tracker that had been placed inside.

Covert tracking devices are constantly improving and the ability to track cargo, whether or not it remains in the conveyance, has become a critical tool for supply chain security. Various techniques are being suggested for protecting tracking signals from jammers. Additional information posted in the Resources section of the TAPA Americas website is accessible to members only.

Jamming is becoming a hot issue; however companies that produce and sell tracking devices still advise that jammers are not particularly effective in most situations and are not yet considered a serious problem. As further research emerges, it is suggested that jamming be considered as a possible risk when assessing the supply chain. Jammers are illegal in most countries but are easily obtained over the internet for prices ranging from $30 to $450.

Training update

TAPA Americas provided FSR training for 22 members after the T1 event in San Diego. Dates will be announced for future FSR courses after T1 2012. Planning for TSR training is still in development.

Members are advised that certifi cation is now available through TAPA Americas’ auditors in Latin America.

TAPA Americas

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E-voting will decide 2012 ManagementCommittee electionElections to decide the TAPA Asia Management Committee for 2012 will be conducted using e-voting.

In the past TAPA Asia MCs have been elected by members attending the Annual General Meeting (AGM). Such a practice, however, excluded members not present at the AGM from voting.

Adopting e-voting will allow transparency in the election process and gives all current fi nancial TAPA Asia members an opportunity to vote for the MC members in each election year. The TAPA Asia bylaws have been amended to allow for this change in process.

To implement this new election process, all current TAPA Asia MC members are required to step down. Each year, any member of TAPA Asia is welcome to nominate themselves for election. Application forms for the 2012 election of 13 new MC members - including the roles of Chairman, Vice Chairman, Treasurer and Secretary - will be made available on the website. Email notifi cation to confi rm the nominees and voting period will be sent out to current fi nancial members.

TAPA ASIA

Awards recognise contribution to supply chain securityCEVA Logistics, DHL, Schenker and TNT Express have picked up awards from TAPA Asia for their contribution to supply chain security for TAPA FSR ‘A’ level certifi ed warehouses and facilities in Singapore and across Asia.

TAPA FSR ‘A’ is acknowledged as the highest security standard for operational facilities.

CEVA and TNT Express picked up additional awards for their contribution to land transportation security having implemented the TAPA Truck Security Requirements (TSR), the highest standard of road security. Meanwhile, the SGS audit was recognised for its contribution to auditing of the TAPA standards and SIMM was also honored for its contribution to TAPA freight security training and development.

The awards were presented by TAPA Asia’s guest of honour and keynote speaker, BG(NS) Choi Shing Kwok, Permanent Secretary, Ministry of Transport.

SIMM helps to establish fi rst TAPA FSR training centreSince TAPA Asia signed an MOU with the Singapore Institute of Materials Management (SIMM) last year, SIMM has launched a two-day training course on the fundamentals of TAPA FSR management and the importance of compliance to the industry standard for supply chain security.

The fundamentals of the course include an overview of supply chain security, an introduction to TAPA, the concept of the FSR standards including the elements, advantages and benefi ts of TAPA FSR as well as the ‘Implementation of the FSR in a Security programme.’ An in-depth overview of ‘Warehouse and Perimeter Security’ are also included.

The primary objective is to establish and to maintain a high standard of knowledge and excellence in the fi eld of logistics and materials management. The secondary objective is to promote and foster the study, research and development of logistics and supply

chain management including the critical issue of supply chain security.

SIMM have already completed two TAPA FSR training classes.

Eddie Tan, Chairman, SCSP-SIMM chapter, said: “As this is a fi rst positive step for all of us, we will endeavour to continue with this momentum of educating our SIMM members in TAPA programmes and collaborate further with TAPA in other new programmes too. This will effectively enhance and raise the profi le of Supply Chain Security in the near future in Singapore and also in Asia.”

Jason Teo, former TAPA Asia Chairman and the Management Committee member who signed the MOU, said: “Over 1,100 TAPA members in Asia have been trained in our security standards in the last 10 years. In collaboration with SIMM we have set up the fi rst approved TAPA FSR Training Centre in the world to train students in supply chain security. This should serve as a good case study of how the logistics industry and education can prepare students for their future roles inside an ever changing supply chain operation.”

David Stenberg, Director of TNT Asia Road Network, receiving awards from Choi Shing Kwok, Permanent Secretary, Ministry of Transport and Jason Teo of the TAPA Asia Management Committee

page nine

Singapore Customs Licensing and Enforcement offi cers undertake TAPA FSR Auditor Awareness TrainingAs part of TAPA Asia’s commitment to forging closer links with law enforcement agencies in the region, over 40 Singapore Customs Licensing and Enforcement offi cers have completed a two-day training session provided by TAPA Asia Management Committee members.

The two training sessions took place at Customs Revenue House. This is the second occasion TAPA has worked in conjunction with Singapore Customs. The objective was to train Customs Offi cers in TAPA FSR auditing methodology and to show how TAPA’s Freight Security Requirements (FSR) underpin and support the requirements of the Customs Secure Trade Partnership (STP) programme. Examples were given of the synergies between the standards and the benefi ts that TAPA members obtain when their facility is certifi ed to the TAPA FSR standard.

The Secure Trade Partnership (STP) programme is a voluntary certifi cation programme administered by Singapore

Customs that encourages companies to adopt robust security measures in their trading operations, thereby contributing to the improvement in the security of the global supply chain.

TAPA Asia has compiled a simple guide to STP to show the synergy with FSR in relation to Facility Management, Cargo Management, Human Resources, Information Systems, Business Network and Country Management systems and other areas. To request a copy, please contact Tony.Lugg@astratagroup.com.

The Singapore Airport Police Division which administers the Regulated Air Cargo Agent Regime (RCAR) also recognises TAPA FSR certifi cation A and B and other industry certifi cations such as STP and C-TPAT Tier 2 or 3. Consignors can be recognised as Known Consignors by a Regulated Cargo Agent if they have a valid TAPA FSR certifi cation to level A or B.

Tony Lugg, TAPA Management Committee, said: “TAPA members who have certifi ed TAPA sites benefi t enormously from recognition given by the Singapore law enforcement agencies. TAPA is extremely pleased that Singapore Customs and the Singapore Airport Police Division recognise the benefi ts of the TAPA A or B certifi cation and the contribution that the programme provides to enhancing aviation and supply chain security. This encourages our members to invest in their security

programme as they are able to see the tangible benefi ts.”

During the training, Customs Offi cers visited the TNT Express Air Hub at Singapore Changi Airport, which has TAPA FSR ‘A’ accreditation.

Tony Lugg went on to say: “It is important that industry polices itself to prevent over regulation and works closely with law enforcement and regulators to secure the supply chain upstream as well as down stream. TAPA FSR provides prescriptive standards, which go much deeper into the criteria, making it a favourable SCS programme with government agencies.”

For further information on Singapore Trade Partnership & Singapore Airport Police Division, please visit http://www.customs.gov.sg/leftNav/trad/Supply+Chain+Security.htm and http://www.spf.gov.sg/rcar/index.htm

New website approvedThe Management Committee have approved the revamp of the TAPA Asia website. Daniel Lam, Treasurer, said: “After 10 years, the website needs updating and modernising to improve services and benefi ts to members. The new site will include sections for TAPA chapters across the region. This gives us the opportunity to design and build a website that will meet TAPA Asia’s requirements for at least the next 5 years.”

Next training events

Three more FSR 2011 Audit Training events are scheduled this year:

Date LocationSeptember 6-9 Hong KongOctober 20-21 Jakarta, IndonesiaNovember 17-18 Melbourne, Australia

Places are limited.For more information, contact mark.butcher@dhl.com or edwardgoh@singnet.com.sg

Chapters to be formed in India, Malaysia and Singapore

TAPA Asia is increasing its reach with the formation of new chapters in India, Malaysia and Singapore.

If you’re interested in meeting your peers and tackling TAPA initiatives locally with Law Enforcement Agencies in these countries, please contact:

Singapore Chapter: Jason.Teo@infi neon.com or awong@kraftasia.com

Malaysia Chapter: ELChing.EngLeong@Honeywell.com or Tony.Lugg@astratagroup.com

India Chapter: bhabajit.nandi@nokia.com

TAPA ASIA

Easier subscription payments

TAPA Asia members can now use the Paypal service to

pay for annual membership fees and training. Members will

receive a link that will allow them to pay online and speed up

the accounting process. Daniel Lam, TAPA Asia Treasurer,

said: “This is a great method of enabling members to pay

their membership subscriptions quickly, securely and with

less effort.”

page ten

TAPA EMEA

TACSS workshop in Amsterdam aims to check progress ahead of 2012 roll-outA workshop to look at the progress of the new TAPA Air Cargo Security Standards (TACSS) will be hosted by TAPA EMEA in Amsterdam on September 6th 2011.

With drafting of the new standard almost complete, the workshop aims to look at the materials produced and the process of obtaining TACSS certifi cation. Ahead of the planned offi cial roll-out on February 1st 2012, it wants to confi rm the new standard is on the right track to deliver the programme members are looking for.

With spaces limited, priority will be given to those TAPA EMEA members that will be looking to implement TACSS in the future or are used to working in the air cargo sector. Further information can be found online at www.tapaemea.com

Americas and Asia members welcome to attend 2011 eventsTAPA members in the Americas and Asia that have representatives in the EMEA region can apply for them to attend two key events taking place in London and Rome during the second half of 2011.

On September 13th in London, a United Kingdom Regional Conference will take place alongside the Transport Security Expo 2011 (13-14 September) www.transec.com. The conference will focus on the key issues of FSR auditing, IIS, and insurance. It will also include a presentation from Truckpol, the UK’s national intelligence unit which forms part of the ACPO Vehicle Crime Intelligence Service.

The event has been timed to enable delegates to also visit Transport Securi-ty Expo, which brings together some 70 exhibitors and over 2,500 international attendees from government, global

manufacturers, logistics, freight carri-ers, law enforcement, airport, port and rail operators. Over two days, Transport Security Expo addresses the threats posed from terrorism, organised crime, theft, drug smuggling, border control and immigration. For further details on the TAPA EMEA UK Regional Confer-ence and to book your free of charge place, please go to www.transec.com/tapa.

The region’s fi nal big event of 2011 is its Q4 Conference, which will take place in Rome on October 6th and 7th. Over 200 delegates are expected for the event which has adopted the theme of ‘Public Private Partnership’

Members in the Americas and Asia that wish to fi nd out more about attending these events should contact info@tapaemea.com

Record attendance for Q2 Conference in BrusselsBrussels, which is often referred to as the ‘capital of Europe,’ given its position as the administration centre of the European Union (EU) and its reputation as a main centre for international politics, helped to attract a record number of over 200 delegates to the TAPA EMEA Q2 Conference last month.

Once again, TAPA EMEA welcomed a series of top speakers. The conference began with opening remarks by Robert Missen, Head of the Unit responsible for Maritime and Land Transport Security. In his previous role he had been responsible for all EU legislation in the fi eld of civil aviation security and it was his decision that lead to the ban on liquids from cabin baggage at EU airports.

Michael Ahner of Sony Computer Entertainment Europe (SCEE) gave a powerful insight into his company’s

pragmatic approach to supply chain risk management and how it is possible to not only outwit criminals but to also save money in the process even with a territory and number of distributors as large as SCEE. The company’s focus produced outstanding results with no losses in European linehaul in six years and a 20% reduction in insurance premiums.

A law enforcement update was provided by Superintendent Luc Paulussen of the Belgian Judicial Police. Delegates also heard presentations on TAPA’s Parking Security Requirements (PSR) and Secured

Parking by John Carroll of Chartis Insurance and Dirk Penasse of ESPORG respectively as well as the next steps for the LABEL project in Europe, presented by Michael Nielsen, delegate of the International Road Transport Union Permanent Delegation to the EU. He also introduced the TRANSPark parking information platform.

Air cargo security was also featured with a panel including Harald Haelterman, Head of Security North Europe for TNT Express, and Werner Cooreman, Head of Security for DHL Express Europe.

page eleven

New training datesTwo more dates have been announced for FSR training.

These will take place in Amsterdam on October 19-20, 2011, hosted by DHL, and in Sweden on November 1st and 2nd hosted by Bring Parcels AB. Full details and registration via the TAPA EMEA website.

New Board to focus on Development, Information, Intelligence and StandardsTAPA EMEA has restructured its Board to focus on the four prime areas of:

• Development• Information• Intelligence• Standards

The new approach follows the 2011/2012 Board election and is aimed at giving more fl exibility, spreading the workload and transferring resources between activities so the expertise of Board members can be focused on where they are most needed. The Board’s prime goal is to fi nd ways to increase the value of TAPA EMEA membership and to continue to keep TAPA at the forefront of asset protection.

The four teams have also starting working on their priorities for their two-year term of offi ce. Although new areas will continue to be looked at, objectives will include:

Development

• Launch a new membership initiative, promoting the benefi ts of membership and engaging members to support TAPA EMEA’s efforts to expand and diversify its membership

• Increase TAPA’s footprint in the EMEA region by speaking at and attending key events and conferences

Information

• Update the website, make it more informative, interactive and user-friendly

• Create a robust conference strategy giving members more advance information of when events are scheduled and modifying format, themes and speakers to address the wishes of members

The Information Team are also looking to include more member interviews in Vigilant, TAPA EMEA’s monthly e-newsletter, and to use the publication to give practical advice. In addition, new presentations are being developed to support growing demand for TAPA speakers at events across the region.

Intelligence

• Increase the integrity of data by encouraging members to share information

• Work closer with key Law Enforcement Agencies and look at ways to more effectively share data

• Work with TAPA partners to introduce global analyses of existing data

Standards

• Survey members on how FSR is working and how it can be improved

• Work towards the long-term goal of developing a TAPA ONE Standard

• Develop training for TACSS

• Roll out TSR certifi cation /compliance globally (2012)

TAPA targets closer ties with industry regulatorsTAPA EMEA is proactively developing closer ties to regulatory bodies to increase awareness of its fi ght against cargo crime and the scale of the problem facing businesses across the region.

In January, the Association took part in the Inland Transport Security Discussion Forum at the United Nations in Geneva alongside the likes of DG Taxud, The World Customs Organization, the European Committee for Standardization (CEN), and the Organization for Security and Cooperation in Europe (OSCE).

The OSCE and the UN Economic Commission for Europe has subsequently invited TAPA to submit a lead discussion paper for its Security Forum in Vienna in December giving the manufacturers’ perspective of inland transport security. TAPA has also been asked to review the International Road Transport Union’s paper on road transport security.

TAPA EMEA is also contributing to the European Committee of Standardization’s ‘Supply Chain Security – Good Practice Guidebook’ and will participate on an Inland Transport Security Experts Roundtable discussion.

In June, TAPA EMEA also took up the World Customs Organization’s invitation to participate in its Open Day for Trade in Brussels. The purpose of the event was to allow private sector participants to meet and learn more about the dynamics of WCO initiatives, activities, tools and instruments.

More recently, TAPA EMEA Chairman, Thorsten Neumann, joined representatives of the German Ministry of Interior and Ministry of Transport as a speaker at the GDV event in Berlin while in the Hague, TAPA EMEA offi cials have taken part in a debate on ‘Public Private Sector Partnership’ alongside Europol, the European Union’s criminal intelligence agency.

TAPA EMEA

page twelve

IIS REPORT

Reports of cargo crime fell sharply in the Americas and the Europe, Middle East and Africa (EMEA) regions in the fi rst quarter of 2011, according to the latest analysis from the Association’s Incident Information Service (IIS).

In the January 1st-March 31st period, the Americas IIS registered a total of 84 theft incidents, with an average loss value of $726,234/€515,118 for the United States and Canada. This represented a 40% drop on the 140 incidents reported during the fi rst quarter of 2010.

In the Americas region, the states/provinces reporting the highest number of thefts during the fi rst quarter were New Jersey, Florida, Texas, Georgia and Canada’s Ontario Province.

The number of incidents registered by the EMEA IIS in January, February and March 2011 decreased year-on-year from 678 in Q2-2010 to 81 incidents in Q1-2011. During the latest quarter the average loss value per incident stood at $319,669/€233,074.

In Europe, the United Kingdom, France, Germany, Spain and Denmark, in that

order, reported the highest number of incidents to the IIS.

Identifying global trends

The joint Americas-EMEA IIS report identifi es similarities, differences and trends among the cargo theft incidents recorded in both systems. TAPA Asia data will be added in future reports.

In Q1, the most common method of theft in the Americas and EMEA was theft of/from trailer. Europe and the Americas also shared common ground in the location of the most recorded thefts. In both regions unsecured parking topped the list for the location of thefts, although in the EMEA region the Warehouse/DC location shared fi rst place.

Targets vary by region

One of the main differences between the IIS data registered by the Americas and EMEA is the type of products stolen most often. The Food and Beverage product type topped the list in the Americas, with items such as soft drinks, frozen food and seafood among the most popular stolen items. Electronics, including cell phones,

computer monitors and laptops, was second, while Consumer Goods such as furniture, appliances and cosmetics was third. Together these product types accounted for 60% of all theft incidents registered by the Americas IIS.

Most common incidents

In the EMEA region, however, Metal was the most targeted product type, mainly copper and steel. This was followed by Non-electronics such as auto parts, toys and machinery. Electronics, including fl at screen TVs, DVD players and laptops, were in the third most stolen product category. These three categories claimed 69% of all theft incidents registered by the EMEA IIS during the fi rst three months of the year.

Theft of Trailer/Container was by far the most common type of incident reported to the Americas IIS in Q1-2011, with 90% of all thefts registered in this category. In contrast, no particular type of theft incident stood out in the EMEA region,

Sharp reduction in reported crimeIn Q1 in Americas and EMEA

types accounted for 60% of all theft incidentsregistered by the AmericasIIS.

page thirteen

where 33% of all incidents were Theft from Vehicle, 23% were Theft from Facility, 19% were Theft of Vehicle and 11% involved Fraud. Together, these incident types accounted for 86% of all crimes registered by the EMEA IIS in Q1-2011.

Thefts in parking areas

Cargo thefts registered by the Americas IIS for the fi rst three months of the year predominantly involved Trucks, as this category claimed 95% of all incidents for the period. For the incidents registered by the Americas IIS, only 60% reported a known location. Of those, 86% (43 incidents) occurred in parking areas.

Similarly, the Truck mode type was the most common method used by criminals in EMEA with this category claiming 63% of all incidents. However, cargo thefts recorded in the EMEA IIS in Q1-2011

were distributed among three of the four other categories as well. Of the incidents recorded in EMEA, around 70% had a known location. In this region, however, incidents occurring in parking areas accounted for only 45% of the total. Thefts from Facility/Burglary were much more common in the European region during the fi rst three months of this year.

Rise in Fraud

The report notes that even though theft using fraud is not a new phenomenon, the number of incidents in this category continued to grow in both regions during the fi rst quarter. However, the number of thefts occurring as a result of fraud in the Americas is quite conservative compared with the European region. In Q1-2011 alone, thefts by fraud in Europe accounted for 11% of all incidents. This

percentage was the highest recorded by the EMEA IIS in the Fraud category during a quarter.

High value incidents

Four high value (more than $1 million/€709,300) theft incidents occurred in the Americas region in Q1-2011, while two took place in EMEA. Three of the high-value thefts in the Americas targeted Electronics and one involved Consumer Goods. In the EMEA region, the two high-value thefts targeted the Clothing & Footwear and the Pharmaceutical & Medical product types.

e thefts targeted ing & Footwear

Pharmaceutical al ypes.

Highest Rated Cities

Americas EMEAMississauga, CAN Wins ford, UKCarlstadt, New Jersey Felixstowe, UKCarteret, New Jersey Christiansfeld, DNKDallas, Texas Verona, ITMemphis, Tennessee Corby, UK

By Mode

Mode Americas EMEATruck 80 51Rail 0 0Sea 0 3Air 0 1Warehouse 4 26Total 84 81

By Location

Location Type Americas EMEAIn Transit 3 9Secured Parking 16 3Unsecured Parking 27 22Warehouse/DC 4 22

By Incident

AmericasIncident Type # IncidentsTheft of Trailer/Container 76Warehouse/DC Burglary 2Fraudulent Documentation 2Theft from Trailer/Container 2Hijacking 1Warehouse/DC Robbery 1Total 84

By Product Category

AmericasProduct category # IncidentsFood & Beverage 22Electronics 16Consumer Goods 13Construction Materials 12Apparel 7Miscellaneous 6Pharmaceuticals 4Automotive 3Alcohol 1N/A 1

By Incident

EMEAIncident Type # IncidentsTheft from Vehicle 27Theft from Facility 19Theft of Vehicle 15Fraud 9Burglary 6Hijacking 2Theft 2Robbery 1Total 81

By Product Category

EMEAProduct category # IncidentsMetal 21Non-electronic 18Electronics 17Food and Beverage 13Clothing and Footwear 3Cosmetic & Hygiene 2Pharmaceutical & Medical 2Unspecifi ed 1Tobacco 1Cash/Bullion 1Sports goods 1

THE STATS FOR Q1

Americas: Cargo Theft Incidents by Quarter

EMEA: Cargo Theft Incidents by Quarter

IIS REPORT

In each issue of this newsletter, we will publish the names and locations for companies that have gained FSR certifi cation in the period between issues of the IQ magazine. This list from the Association’s global auditors includes TAPA members in the Americas, Asia and EMEA that have achieved accreditation in the period January 1st-May 31st 2011

page fourteen

New Members

New Members

Company Name City/Country Member Category

AARK Security Consultancy Philippines Security ServicesAcer Taiwan BuyerAdemco (Far East) Pte Ltd Singapore Security ServicesADT Security Singapore Security ServicesAdvanced Micro Devices Inc Malaysia BuyerAgility Logistics Ltd. Hong Kong SAR SupplierAlliance Knowledge Management Limited China Service ProviderAsia Airfreight Terminal Company Ltd. Hong Kong SAR supplierBangkok Flight Services Thailand SupplierBIACC SDN BHD Brunei BuyerBSL (Pvt) Ltd Pakistan BuyerBSMART Technology Sdn Bhd Malaysia BuyerBureau Vertifi cation Certifi cation Taiwan Taiwan AuditC-Pak Cergas Sdn Bhd Malaysia BuyerCEVA Freight Holdings (Malaysia) Sdn Bhd Malaysia SupplierChangi International Airport Services (CIAS) Singapore Supplier

Company Name City/Country Member Category

Chartis Insurance Company China Limited China BuyerCIAS Singapore SupplierCJ GLS PHILS INC Philippines SupplierCKE TRANSPORT AGENCY SDN. BHD. Malaysia SupplierDazhong Transportation Int'l Logistics Co.,Ltd China SupplierDelta Force Security Service & Consultancy Sdn. Bhd Malaysia Security Provider

DHL Malaysia SupplierDHL DSC China SupplierDHL Exel Supply Chain Philippines SupplierDHL Express (HK) Limited Hong Kong SAR SupplierDHL Express (Singapore) Pte Ltd Singapore SupplierDHL Global Forwarding (Phils.), Inc. Philippines SupplierDHL Global Forwarding Management (Asia Pacifi c) Singapore Supplier

DHL LOGISTICS Malaysia SupplierDHL Supply Chain Malaysia SupplierDHL-Sinotrans Intl Air Courier Ltd. China SupplierDimerco Express (Philippines) Inc. Philippines SupplierElectronic Security Systems Corporation - a Ademco Security Group Company Philippines Security Services

Eli Lilly and Company United States SupplierElite Risk Services Ltd. Taiwan Service ProviderEverterminal co., Ltd Taiwan Service ProviderFertile Plan International Logistics Co., Ltd China Supplier

G4SIndonesia/ Malaysia/ Philippines

Security Provider

G4S/Catena Security Inc. Philippines Service ProviderHelmann Worldwide Logistics (Shanghai) Ltd. China SupplierHENRIMA MALAYSIA SDN BHD Malaysia BuyerIngram Micro Asia Pacifi c Pte. Ltd. Singapore BuyerIntel Malaysia/Vietnam Buyer

Asia New Members

Company Name State Website

Sean Magann/Sims Recycling Solutions Fremont, CA www.us.simsrecycling.com

Ashley Sametz/RIM (Research In Motion)

Waterloo, Ontario, Canada

www.rim.com

George Latsos, Mark Gruentjes , Joel Barnes/Motorola Solutions

Schaumburg, Illinois www.motorolasolutions.com

Michael Oliver/Amerifreight, Inc. Chicago, Illinois www.sbfs.com

Gary Stewart/Watson Pharmaceutical

Parsippany, New Jersey www.watson.com

James Gomm/DHL ExpressCanada Brampton, Ontario

www.dhl.ca

Darren Russinger/Micron Technologies San Jose, CA www.micron.com

Jerry Beck/Alcon Laboratories Fort Worth, TX www.alcon.comFabio Feldman, Scott Coggins, Sergio Delgado/Flextronics San Jose, CA www.fl extronics.com

John Netherland/U.S. Department of Homeland Security www.dhs.gov

Derreck Brown/Walker International Transportation

LLC Valley Stream, New York

www.witlogistics.com

Bruce Beacom/Quick International Courier

South New York, NY www.quick.aero/quickintl

Americas New Members

Transported Asset Protection Association Beating cargo crime

Theft during the supply chain process

also seriously harms your reputation

with your customers.

By joining the Transported Asset Protection

Association (TAPA), you can gain access to

all of the best practice advice, networking

opportunities and events, security

standards and intelligence tools that have

enabled the Association’s global members

to successfully beat cargo crime for over

10 years.

Your business cannot afford to ignore the

threat of cargo crime. To fi nd out more

about the benefi ts of joining TAPA, visit our

website today.

Cargo crime costs manufacturers of high value, high risk products and their transport and logistics

providers billions of dollars in losses every year.

{STOLEN?}

page fi fteen

Company Name Country Website

Astrium GmbH GE www.securesystems.netAurubis AG DE www.aurubis.com Bosch Security Systems NL www.boschsecurity.nl DHL Express (UK) Ltd UK www.dhl.co.ukEli Lilly Europe www.lilly.comHope Sped srl RO www.hopesped.roLeffelaar Transport NL www.leffelaartransport.nlMaltacourt Hungary Kft HU www.maltacourt.huMotorola Mobility Inc USA www.motorola.comPost Nord Logistic SE www.posten.seSASMA PL www.sas-ma.orgSchenker B.V. NL www.dbschenker.com/nlSecuTrans BV NL www.secutrans.euSICPA SA CH www.sicpa.comTransglobal Cargo Centre Ltd KE www.transglobalcc.comTransportes J. Cano Spain www.transintercano.comWebEye International Ltd HU www.mywebeye.com

EMEA New Members

Company Name City/Country Member Category

Jamila & Company Security Services, Inc. Philippines Security ServicesJohnson Matthey Sdn. Bhd. Malaysia Buyer

Kuehne + Nagel Philippines/ Malaysia Supplier

Lloyd's Register of Shipping (M) Bhd. Malaysia Supplier

Lloyd's Register Quality Assurance Ltd. Philippines/ Malaysia Service Provider

ModusLink Corporation China BuyerNARITA EXPRESS (H.K.) LTD Hong Kong SAR SupplierNIPPON EXPRESS CO.,LTD Japan/Indonesia SupplierNNR Global Logistics (M) Sdn Bhd Malaysia SupplierNOKIA (CHINA) INVESTMENT CO., LTD. China BuyerPANACOM SALES & SERVICES (HQ) SDN BHD Malaysia BuyerPantos Logistics(Ningbo)co.,ltd China SupplierPT Agility International Indonesia SupplierPT SFS INTERNATIONL Indonesia SupplierRichemont Japan Limited Japan BuyerRobert Bosch (Australia) Pty.Ltd. Australia BuyerSanDisk China Buyer

Schenker China/Singapore/Japan Supplier

SFS GLOBAL LOGISTICS

Philippines/Pakistan/Taiwan/Thailand/Korea,South/Hong Kong SAR/Australia/Malaysia

Supplier

SFS INTERNATIONAL INC Japan SupplierSFS LOGISTICS CO LTD Vietnam Supplier

SGSChina/Thailand/Hong Kong SAR/Philippines/China

Audit

SGS-SSC China AuditShanghai Freightcare Marine Services Co., Ltd. China SupplierShanghai Kintetsu World Express Co.,Ltd. China SupplierShanghai Pudong International Airport Public Cargo Terminal Co., Ltd. (West) China Buyer

Shenzhen Integrated Shun Hing Logistics Co.,Ltd. China Supplier

Skytruck Transportation Ltd Hong Kong SAR Supplier

Company Name City/Country Member Category

SMARTLINK NETWORK SYSTEMS LIMITED India SupplierSpansion (Thailand) Co., Ltd. Thailand BuyerSTATS ChipPAC Korea Ltd Korea, South BuyerSTET Homeland Security Services PL Singapore Security ProviderSwiftstar Logistics Corp. Philippines SupplierTAN CHONG HOLDINGS BERHAD Malaysia BuyerTNT China SupplierTotal Risks Services Malaysia Security servicesTyco Fire & Security (Beijing) Co., Ltd China Security ProviderU-FREIGHT LOGISTICS (HK) LIMITED Hong Kong SAR SupplierUnited Parcel Service Philippines/China SupplierVantec Corporation Japan SupplierYusen Air & Sea Service (S) Pte Ltd Singapore Supplier

Americas - www.tapaonline.org Asia - www.tapa-asia.org EMEA - www.tapaemea.com

AMERICASwww.tapaonline.org

ASIAwww.tapa-asia.org

EMEAwww.tapaemea.com

United in the fi ght against global cargo crime

Transported Asset Protection Association