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Four factors that may leave your cargo at greater risk of theft
Cargo theft is on the rise across Canada, and this should come as no surprise to carriers: With the increasing value of goods being transported across the country every day, it’s a
relatively low-risk crime with the potential for very high returns. In fact, cargo theft has become so lucrative that it’s attracted the attention of large criminal enterprises to fund other illegal activity.
Over the past decade, cargo theft has evolved from a crime of opportunity to a much more complex endeavor. Criminal circles are becoming highly sophisticated in their organization and ap- proach, leveraging new technology to target loads with a greater payout and developing networks that quickly move stolen goods through the black market economy. And cargo itself isn’t the only target: carriers and owner-operators are at risk of losing their very means of transportation as well, with some thieves now stealing the entire trailer to sell as scrap metal.
So what do you need to know to stay better protected? Here are four factors that may impact the safety of your cargo, based on current theft trends that we’re tracking across Canada.
WHAT YOU’RE CARRYING
Mixed load cargo that contains a variety of generic goods (i.e., household items or clothing) is often a primary target for theft. Since there are no distinguishing marks to look for, such as serial numbers or other tracking characteristics, it’s often the hardest to trace. This ensures that these products are also the easiest to of- fload to nearby buyers such as local flea markets or inconspicuous neighborhood shops, where they can be sold immediately, reducing thieves’ risk of exposure. Consider a product like laundry deter- gent: the load can be split up quickly, sold almost anywhere, and will often blend seamlessly with the rest of a store’s inventory.
Other types of cargo seem to be garnering more attention these days, too. Aside from mixed loads, grocery and food products are notoriously tempting for thieves, as they’re even more difficult to track and relatively easy to resell.
WHERE IT’S HEADED
Cargo being targeted for theft varies significantly across the country, and even within the same province. Certain places are historically more vulnerable than others; for instance, Ontario and Quebec have been identified as the riskiest provinces, especially major cities like Montreal and the Greater Toronto Area. These regions see higher rates of theft for specific goods. In Eastern Ontario and Western Quebec, auto parts and metal are attracting more cargo thieves this year. And in the west, lumber loads have become targets.
In Southern Ontario, one possibly surprising type of food that’s rising in popularity is meat products. Moving perishable goods relies
By Garry Robertson
on an advanced logistical framework that requires coordination
and investment: criminals are enticed by the fact that meat can be unloaded quickly, but it also needs to be. Spoiled meat is worthless, so refrigerated trucks are needed to transport the stolen load, and networks of people must be at the ready to sell and deliver the prod- uct to customers. All of this takes time, money, and practice.
WHEN IT’S TRAVELLING
Cargo that’s not moving is always more vulnerable – especially when it’s kept in an unsecured yard – so there are certain times of year that require extra vigilance. For instance, long weekends and holidays are prime time for cargo theft, because thieves gain a full day to trans- port and unload their stolen goods; the crime can be carried out on a Friday and go unnoticed until work starts back up on Tuesday.
A good way to keep cargo safer is to keep it moving, ensuring it gets to its destination as quickly as possible. Any extra time spent between point A and point B is an opportunity for theft.
HOW YOU’RE TRACKING IT
In many cases, theft comes down to a weak link in the system. More than ever before, identity theft is being used to steal cargo loads. Thieves visit online load broker sites and target specific loads that are scheduled to be picked up. Then they create false docu- ments and pick up the load early using the stolen identity of an existing logistics company, effectively posing as their agent. Unless a real-time asset tracking system is in place, no wrongdoing is sus- pected until someone goes to retrieve the load – only to find out it has already been picked up.
Although this information is enough to worry carriers of all sizes, there are ways to help mitigate your cyber-related risks – like the implementation of fleet management tools and the use of an asset tracking system like BlackBerry® Radar.
With the help of an experienced risk management professional, it’s possible to develop a strategic approach that will help minimize losses related to cargo theft. At Northbridge, we’re working to pro- tect our customers by educating industry groups, working closely with law enforcement, and raising awareness of this issue with the public so that they can make informed buying decisions.
To learn more about how to set up a risk management program, call us at 1-855-620-6262 and ask to speak to a Northbridge Insurance Risk Services manager in your area.
Garry Robertson is Manager of the Claims Special Investigations Unit for Northbridge. A Certified Fraud Expert, Garry has over thirty years of experience in insurance and corporate fraud investigations.
Northbridge Insurance and Northbridge Insurance Logo are trademarks of Northbridge Financial Corporation, licensed by Northbridge General Insurance Corporation (insurer of Northbridge Insurance policies).
This article is provided for information only and is not a substitute for professional advice. We make no representations or warranties regarding the accuracy or completeness of the information and will not be responsible for any loss arising out of reliance on the information.
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