Globally, each year, cargo theft incidents continue to rise. In North America, the recovery of stolen freight can be a very difficult task. The Transported Asset Protection Association (TAPA), a leading organization dedicated to preventing cargo theft in the transportation industry, considers a high value shipment to be anything worth or over $100,000. Coincidentally, $100,000 is typically the liability limit for most carriers.
According to CargoNet’s supply chain risk trends, there were 1,778 reported theft incidents in 2022 – an average of 4.8 per day. The average value per theft increased year-over-year in 2022 to $223,096 from $172,340. The greatest number of thefts were recorded in California, Texas, and Florida, accounting for 46% of all thefts in 2022. Theft in Georgia increased by 34% year-over-year, due in part to organized crime groups that took advantage of increased traffic to the Port of Savannah. Each of these states has ports processing millions of goods from around the world and populations dense enough to have quick re-sell opportunities.
Despite some insurance policies and freight claims being able to cover the value of the lost freight, it doesn’t allow product to get into the end consumers’ hands. Replacing stolen or damaged goods above insurance coverage requires supplemental resources and labor for reproduction which compounds losses. Adding insult to injury, even high value cargo thefts are often considered low priority property crimes for law enforcement agencies, and pinpointing the place of theft is sometimes impossible.
Moreover, for carriers, damage, pilferage or theft could result in extremely high claim payouts, so ensuring that loads are well-secured is essential. On the shipper’s end, freight claims may allow for some money to be recovered, but there is no claim that can turn back the clock when goods cannot be delivered.
So, as a solution orientated organization, with 150 years of supply chain security experience, in this article we will outline a comprehensive TydenBrooks ‘total-solution’ that will monitor and secure the interior and exterior of your conveyance to effectively mitigate damage, and combat cargo theft.
Protecting High Value Freight: Mitigating Damage
When it comes to shipping high value commodities it’s important that the commodities are delivered safely, particularly if its sensitive to temperature or fragile. Prior to shipping, its critical to detail known ‘high-risk zones’ along your route with your team. An example may be to avoid shipping on weekends which is when the most cargo thefts are reported. Another could be to avoid a location, or a certain time of the day, and even days of the week when risk is at its highest.
In the case of safely shipping whiskey, one of the most targeted high value goods by cargo thieves, you also need to consider monitoring and protecting the interior contents of the trailer or container. When shipping fragile glass liquor bottles, there are several precautions that should be taken. While the whiskey will be encased in thick glass, it is still glass so it will be prone to breaking.
Proper packaging such as, sturdy corrugated cardboard boxes with dividers to reduce the risk of bottles knocking into one another and shattering is a must. Boxes will then be stacked on top of one another and shrink wrapped on a skid. However, shrink wrapping does not prevent or protect against tipping or damage as it is merely a stabilizer.
Additional factors, such as road conditions, weather, and other drivers on the road, can contribute to an unexpected shock, hard-stop, or potentially a significant road bump. When these regular incidents occur causing cases to tip and fall, the resulting damage to bottles, cases, or a skid will only become apparent during unloading at the final destination.
Of equal importance, exposure to extreme temperatures can cause the whiskey to expand and contract, potentially damaging the bottle and altering the taste of the whiskey. If the temperature is too high, it can also cause the whiskey to evaporate, leading to a loss in volume and quality. The ideal temperature for shipping whiskey in a transport truck can vary depending on the specific type of whiskey, but a general guideline is to keep the temperature between 50 and 70 degrees Fahrenheit (10 to 21 degrees Celsius).
This temperature range is considered optimal for preserving the quality and flavor of the whiskey. It’s also important to note that fluctuations in temperature, especially extreme temperatures, can damage the quality and flavor of whiskey, leading to potential spoilage, evaporation, and oxidation. Therefore, it’s essential to maintain a consistent temperature throughout the shipping process to ensure the quality and integrity of the product.
A 53-foot trailer can hold up to twenty-six skids of whiskey, which typically holds between twenty and thirty cases, with each case commonly containing twelve 750ml bottles (25.36 ounces). A decent whiskey at the retail level, can be valued between $15 to $20. Therefore, if several cases or a skid is damaged, the shipper and carrier could potentially face significant losses, both in terms of the value of the whiskey and damage to their reputations.
To alleviate damage and losses, the first layer of TydenBrooks’ total-solution creates an actionable bread-crumb of tracking and monitoring details that pinpoint where, when, and how damage is taking place. The ‘live’ product condition monitoring is possible with our complete line of connected GPS TydenTrackers and TydenTags. The connected devices utilize advanced analytics and automations to monitor and report changes in light, movement, shock, temperature, and humidity as multiple shipments moves through the supply chain. The 24/7 monitoring and tracking of each shipment along its route is achieved with our TrackSecure platform.
Authorized associates can create predetermined shipment route rules such as, Geofencing to notify them in real-time if they are violated. Preset monitoring alerts means users can take immediate action to mitigate any further damage by contacting the carrier or make contact with the facility for a replacement order. These “active” devices can also be embedded into the freight including cartons to provide visibility at the case level.
Protecting High Value Freight: Mitigating Theft
In North America, the top targets of cargo criminals and organized crime groups are, unsecured parking locations, facility or port yards, truck stops, and unattended vehicles. There is also a rise in a scheme called “fictitious cargo pickups,” which combines identity theft and cargo theft, and can harm all parties involved in the supply chain. In 2022, CargoNet reports, there was a 600% increase in these incidents compared to the previous year, with ninety-six additional cases reported. Although, California had the highest number of fictitious pickups (74%), this crime is spreading throughout the US.
Statistically, alcoholic beverages such as, whiskey are easy to sell in grey and black markets which adds to its desirability. Their fast consumption and lack of traceability make them a low-risk and lucrative option for thieves. According to the Bureau of Transportation Statistics, alcoholic beverages are among the top five most commonly stolen commodity groups in the United States. The report also notes that the average loss per alcohol theft incident is higher than the average loss per theft incident for other commodity groups.
Furthermore, with the ongoing supply chain disruptions leading to scarcity, the demand for alcoholic beverages on illicit markets has increased. Consequently, the value that stolen goods can command is a significant factor in determining which brands may be targeted for theft. The specific products that are in high demand vary by region, with local market demand playing a critical role in assessing which types of alcoholic cargo are at greater risk.
Additional risks when shipping whiskey are, physical harm to drivers, increased insurance premiums, and loss or damage of transportation equipment. There are repeated incidents of a driver leaving a truck unattended and coming back to an empty parking spot. In such a case, not only is the valuable cargo lost, but also the truck and trailer, which can prove to be even more disastrous to drivers who are owner/operators.
The final layer of the TydenBrooks total-solution involves securing the exterior of the conveyance with our high security ISO cable or bolt seals such as, our EZ Loc Plus or Snaptracker. Both barrier solutions exceed the ISO 17712 standard and require cable or bolt cutters for removal. Marked by high security lasers the ability to customize the barrier seals with 1D, 2D, or QR barcodes allows for unique company identifiers only known to authorized personnel. This ensures their authenticity and chain-of-custody tracking.
Securing the World
Clearly, high-value and high-risk shipments are best protected by implementing layered protective measures such as, ‘live’ connected tracking and monitoring sensors with high security ISO barrier seals. With a TydenBrooks total-solution, shippers and carriers can remove their ‘blind spots” to actively curtail incursions, and proactively combat damage, claims, pilferage, and theft.
By ensuring sensitive high value products arrive safely to their destination, TydenBrooks helps make the world a safer and more productive place for shippers, carriers, and the consumer. To implement a TydenBrooks total-solution contact us at 1-800-458-7325 (SEAL) or [email protected] and speak with one of our supply chain security experts today.
