Cargo Security Still an Issue Despite 6% Theft Drop

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Cargo Security Still an Issue Despite 6% Theft Drop

One of the major items we focus on at OpticalLock is Cargo Security, whether in-transit or stored at a warehouse. We recently came across a couple of reports detailing the current state of cargo security in 2016.

Image Showing a Lock on a Truck - Cargo Security is Still a Major Supply Chain Issue

Cargo Security is a Major Supply Chain Issue

The first recent report by logistics security provider FreightWatch International states that there were 754 thefts throughout the US in 2015 at an average loss value of $184,101. This represents a 6% drop in volume of cargo theft incidents and a 21% drop in value of goods lost from 2014.

Important Cargo Security Findings from the FreightWatch International Report

  • While the number of cargo theft incidents fell, the threat of loss continues to grow due to increased sophistication and geographic areas of operation by cargo thieves
  • Cargo thefts in the US occurred at a rate of 2.1/day and the threat level is listed as high, the second highest level
  • The drops of 12% from 2013 to 2014 and 6% from 2014 to 2015 represent a tightening of cargo security, but thieves are resourceful and will change their tactics to maintain their income levels
  • Thieves often change their focus to less that full truckloads, a crime which is less likely to be reported and therefore can skew the statistics stated above
  • Organized gangs also move their operations to regions with less focus from law enforcement, which can also skew these statistics
  • Since 2011 cargo theft incidence has fluctuated only slightly within a tight range

A previous study by CargoNet also supports the notion that cargo theft is a very serious problem for supply chain and security professionals.

Important Cargo Security Highlights from the CargoNet Report

  • There were in excess of 1,500 cargo,  heavy commercial vehicle, and identity thefts from US and Canada-based trucking companies in the in 2015
  • The average loss per carge theft incident was $187,490 consistent with the FreightWatch report
  • The state with the most cargo theft was California, followed by Texas, Florida and Georgia in that order
  • There were at least 10 cargo heists in North America of $1M or more in 2015
  • Nearly half of all cargo theft occurred between Friday and Sunday, with Friday the most common day and Wednesday the least common
  • Food and Beverage were the most stolen type of commodity as in previous years totaling 285 of all cargo theft. This was more than double each of the next most common theft categories, with electronics and household goods each accounting for 13% of the total

The findings from these two important reports highlight the important role that the OpticalLock system plays in enhancing cargo security. OpticalLock adds security by combining GPS tracking, the functionality of a security seal and high security lock all in the versatile, traditional padlock form factor.

Please Contact us to to explore how OpticalLock products can increase your cargo security today!

 

About the Author:

Phil Morettini is an experienced technology executive and marketer with expertise in hardware, software and supply chain industries.

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