cargo theft rises in 2008,
reflecting downturn
Cargo theft was a problem even in stable economic times. So
it may not be surprising that as the economic downturn gathered speed in 2008, so apparently did the incidence of theft.
The number of incidents involving the theft of full truckloads climbed 13 percent over 2007 levels, according to data
from Austin, Texas-based logistics security specialist
FreightWatch International (USA). Most incidents
occurred within 200 miles of the shipment’s origin and
came from stealing unattended vehicles, the firm reported.
Hijackings or armed robberies accounted for only 3 percent
of the incidents, the firm said.
What’s being stolen? In perhaps another reflection of the
downturn’s severity, foodstuffs and pharmaceuticals were the
most common commodities pilfered in 2008. LoJack Supply
Chain Integrity, a unit of the auto recovery pioneer LoJack,
conducted a survey of 1,500 professionals representing 600
organizations across the supply chain. Of the 353 incidents
reported by the respondents in 2008, 13 percent represented
theft of foodstuffs. That was followed by pharmaceuticals
and building supplies, each at 12 percent. By contrast, nonstaple items like music, movies, and software accounted for
only 1 percent of the thefts, the respondents reported.
Texas led the list of states with the highest cargo theft rates,
with 68 incidents. It was followed by Georgia with 53; then
Tennessee with 18; and California and Florida, each with 16.
Truck stops were the most common location for theft, according to respondents to the LoJack survey, while Saturdays and
Sundays were the most likely days for theft to occur.
FreightWatch said the targeting of U.S. pharmaceutical
shipments occurred on an “unprecedented scale” in 2008,
with 44 incidents reported, mostly in regions with clusters of
drug manufacturing and distribution facilities. “This type of
pharmaceutical targeting has not been seen at this level in
previous years and has not been seen in any other country,”
the report concluded.
short takes
Kansas City-based TranSystems has completed its acquisition of The Access Group, based in Gallatin, Tenn. The
acquisition enhances TranSystems’ management and supply chain consulting capabilities. ... Datalogic is bringing
production of its Pegaso mobile computer back to the
United States. The company will manufacture the unit,
which had been produced by offshore contractors, at its
Eugene, Ore., facility. ... Telogis, a company that provides
location-based tracking solutions, has acquired Darby
go figure …
13.1%
The December 2008 year-over-year decline in the
value of merchandise moving via surface transportation in the NAFTA trades.
SOURCE: U.S. BUREAU OF TRANSPORTATION STATISTICS
Barry Brandman, CEO of investigation, loss prevention,
and supply chain security consultants Danbee Investigations
Inc. of Midland Park, N.J., cautions against reading too much
into public data on cargo theft. Many databases contain inaccurate or incomplete data, and companies are often loath to
participate for fear that disclosing information on theft incidents will tarnish their reputation and risk client defections,
he says. Based on a combination of empirical and anecdotal
evidence, however, Brandman believes the current downturn
is pushing cargo theft to unusually high levels. “Incidents
always rise during times of economic softness. But this time
is different,” he says.
Brandman says he is seeing more theft of such consumer
staples as toothpaste, as well as so-called “second-tier” foodstuffs rather than top-line items like meat, poultry, and
seafood. The large number of managerial and supervisory
layoffs has worsened the problem, he says, because they
have removed a critical layer of staff tasked with monitoring worker behavior in warehouses and distribution centers
as well as out on the road.
Brandman expects the problem to persist even when the
economy revives. Employees involved in theft rings pocket
hundreds, even thousands, of dollars a week in under-the-table cash to supplement their reportable income, and soon
adjust to a more lavish lifestyle that they become reluctant
to give up. “Once you get accustomed to getting that kind of
money,” he says, “it becomes more addictive than heroin.”
—M.S.
Corporate Solutions’ GPS fleet tracking business. ... Agility,
an international logistics company, is teaming up with
International Medical Corps to enhance the efficiency of
the organization’s humanitarian relief efforts. ... Inmar, a
company that provides logistics services to the consumer
and health-care markets, has rebranded all of its divisions,
which include CMS, Carolina Services, CLS, Med Turn, CSCS,
VSI, Winston Data, and Stratapult, with the corporate name.
They will now operate solely under the Inmar banner.
