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Protecting California’s High-Value Electronics Supply Chain

In today’s fast-paced world, consumer electronics, including smartphones, laptops, and smart TVs, are in high demand. California, a tech hub with major ports like Los Angeles and Long Beach, plays a pivotal role in distributing these high-value gadgets. California is a major player in the multi-billion-dollar consumer electronics industry, housing tech giants and serving as a primary entry point for these products into the United States. This represents over 20% of the state’s shipments nationwide.

Regrettably, the allure of high-value electronics shipments is counterbalanced by elevated levels of risk and vulnerability making these goods prime targets for organized crime and strategic cargo theft. In North America, cargo criminals and organized crime groups often target unsecured parking locations, facility or port yards, truck stops, and unattended vehicles. “Fictitious cargo pickups,” a scheme involving identity theft and cargo theft, has seen a significant increase, with California being one of the most affected states.

Recent data from CargoNet unveils a distressing and persistent increase in cargo theft incidents, providing a disquieting snapshot of the prevailing scenario. During the second quarter of 2023, the United States and Canada experienced a staggering 57% increase in cargo theft events, totaling 582 reported cases. Notably, the second quarter of 2023 witnessed a focus on high-value cargo theft, with perpetrators making off with over $44 million worth of goods. The most frequently targeted commodities in this three-month period were food and beverages and electronics. Additionally, the average value per incident surged to $260,703, representing an increase of nearly $100,000 from the previous quarter.

Full trailer thefts, another facet of cargo theft, also experienced a worrisome uptick during the second quarter of 2023, showing a 17% increase compared to the previous year. These incidents were most prevalent in states such as California, Texas, Florida, and Illinois, with notable regional theft activity observed around New York City and Philadelphia. While law enforcement efforts have managed to curb some full trailer thefts, a significant threat to high-value shipments persists, particularly along the I-40 corridor through Arizona, California, and New Mexico, according to CargoNet.

The gravity of the cargo theft problem has prompted calls from lawmakers for the establishment of a permanent task force dedicated to addressing supply chain theft. These concerns were voiced in a letter to the U.S. Department of Transportation’s Office of Inspector General in May. In response, DOT Inspector General Eric Soskin pledged to collaborate with the Federal Motor Carrier Safety Administration (FMCSA) to investigate, prevent, and detect abuse in the transportation system.

In our contemporary landscape, safeguarding electronic cargo has become an intricate and pivotal task. The importance of protecting these valuable shipments cannot be overstated, particularly in the context of this dynamically evolving industry. Let’s explore a set of exemplary practices to transform your operations from a reactive stance to a proactive one, effectively mitigating the looming risk of cargo theft.

Mitigating Pilferage, Counterfeits, Damage, and Theft

Valuable consumer electronics shipments are prime targets for pilferage, theft, and counterfeiters. These risks exist throughout the shipping process, including storage, loading/unloading, and transit. Mitigating these threats requires stringent layered security protocols based on the mode of transport. Additionally, sensitive electronics require meticulous packaging and careful handling to prevent physical damage. Shipping electronics incorrectly may void their warranties in some cases. Manufacturers often have specific guidelines for shipping and handling to maintain warranty coverage.

  • Secure cartons and skids with a VOID security tape that reveals tampering if any attempts are made to open a box or introduce contraband. This layer of visual tamper-evident security will expose any attempts to pilfer electronics goods and will ensure the merchandise is authentic. Counterfeiters typically conceal their counterfeit goods in generic packaging.
  • Utilize TydenBrooks’ new KT Line of tamper-evident void security tapes that offer custom void security messages in multiple languages, and unique identifiers such as, QR codes.
  • TydenBrooks’ KT Genuine Parts security tape is tailor-made for countering counterfeiting and fraud in OEM markets, with a focus on warranty protection.

Environmental conditions must be considered for shipping consumer electronics. Electronics are susceptible to adverse weather elements like moisture, humidity, and extreme temperatures. To protect sensitive electronics, they should be transported in cool and dry conditions, even in trucks during warmer seasons. Properly securing electronics shipments within conveyances is essential to prevent costly damage from tilting, shocks, or impacts. This damage can make the electronics unsellable, and even if covered by insurance, it results in a loss of sales revenue.

  • To address these issues, implement tracking and monitoring solutions. With real-time visibility into shipments and product conditions using our TrackSecure and TydenTrackers, your global supply chain security team maintains complete control from the initial point of origin to the final destination.
  • Your team, shipper, or carrier gains real-time, 24/7 proactive monitoring capabilities for light door opened, temperature, motion detection, and shock/tilt exception alert breaches.
  • Further enhance your layered security measures, by not only applying an ISO 17712 high-security bolt seal to the truck or container door hasps, but also by adding a TydenBrooks high-security cable seal at the top of the door locking bars. This additional layer of protection significantly increases the difficulty and time required for potential cargo thieves to target your high-value electronics shipment.

Securing the World

In conclusion, protecting sensitive and high-value shipments is crucial in the electronics and high-end goods industry. Implementing a comprehensive approach that includes tracking, monitoring, proper packaging, and high security ISO 17712 barrier seals significantly reduces the risk of damage and theft.

TydenBrooks offers a comprehensive solution for shippers and carriers to actively curtail incursions, proactively combat damage, claims, pilferage, and theft, making the world a safer and more productive place for all stakeholders in the supply chain. Contact us at 1-800-458-7325 (SEAL) or [email protected] and speak with one of our supply chain security experts today.

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