cargo theft annual report - scrip · cargo theft annual report united states & canada...

8
sensitech.com SUPPLY CHAIN INTELLIGENCE CENTER Cargo Theft Annual Report United States & Canada Introduction The SensiGuard ® Supply Chain Intelligence Center (SCIC) actively tracks and records cargo theft activity around the globe, categorizing stolen loads under twelve different product types, and tracking by date, location, Modus Operandi (M.O.), value, and specific product. This report summarizes the United States and Canada theft data collected in 2019, and analyzes trends derived from database content, law enforcement information, and industry personnel. It also draws on observations by personnel in the field. It is inherent that the reader understands that any cargo theft report is an indirect representation of the overall cargo theft footprint; it is not a direct reflection. SensiGuard Security Services records only those cargo thefts reported by reliable sources, such as transportation security councils, insurance companies, and law enforcement organizations. While this does not result in a 100% capture of incidents, it provides a sufficient cross-section of cargo thefts and allows the SCIC to identify trends and deliver in-depth, accurate analysis of the scope of cargo theft in the United States and Canada. Additionally, the SCIC only records incidents involving the theft of cargo, not standalone conveyances such as trailers, containers or bobtail tractors. In an effort to refine available intelligence, Last-Mile Courier thefts have been removed from the following charts and analysis, as this is a completely different form of cargo theft, with highly distinct criminal elements, M.O.’s and security measures. Unless otherwise specified, the remainder of this report focuses on large-scale cargo thefts such as Theft of Full Truckload, Fictitious Pickups, Hijacking, Pilferage, and Facility Thefts, preserving the data and trends of thefts affecting full truckloads. Executive Summary In 2019, the SensiGuard Supply Chain Intelligence Center (SCIC) recorded 703 cargo thefts throughout the United States in 2019: 146 in Q1, 147 in Q2, 169 in Q3 and 241 in Q4. The average value of these thefts was $118,396. These numbers represent a 17% increase in volume and a 22% decrease in average value when compared to 2018. While average value did drop, the volume grew at a rate not seen for several years. Organized cargo thieves in the United States have once again diversified into advanced cargo theft techniques and will continue to hone their processes in pursuit of highly targeted shipments. As experience is gained and intelligence is gathered, average values will likely catch up with the increase in theft volume. 2019

Upload: others

Post on 09-Jul-2020

3 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: Cargo Theft Annual Report - SCRIP · Cargo Theft Annual Report United States & Canada Introduction The SensiGuard® Supply Chain Intelligence Center (SCIC) actively tracks and records

sensitech.com

SUPPLY CHAININTELLIGENCE CENTER

Cargo TheftAnnual ReportUnited States & CanadaIntroductionThe SensiGuard® Supply Chain Intelligence Center (SCIC) actively tracks and records cargo theft activity around the globe, categorizing stolen loads under twelve different product types, and tracking by date, location, Modus Operandi (M.O.), value, and specific product. This report summarizes the United States and Canada theft data collected in 2019, and analyzes trends derived from database content, law enforcement information, and industry personnel. It also draws on observations by personnel in the field.

It is inherent that the reader understands that any cargo theft report is an indirect representation of the overall cargo theft footprint; it is not a direct reflection. SensiGuard Security Services records only those cargo thefts reported by reliable sources, such as transportation security councils, insurance companies, and law enforcement organizations. While this does not result in a 100% capture of incidents, it provides a sufficient cross-section of cargo thefts and allows the SCIC to identify trends and deliver in-depth, accurate analysis of the scope of cargo theft in the United States and Canada. Additionally, the SCIC only records incidents involving the theft of cargo, not standalone conveyances such as trailers, containers or bobtail tractors.

In an effort to refine available intelligence, Last-Mile Courier thefts have been removed from the following charts and analysis, as this is a completely different form of cargo theft, with highly distinct criminal elements, M.O.’s and security measures. Unless otherwise specified, the remainder of this report focuses on large-scale cargo thefts such as Theft of Full Truckload, Fictitious Pickups, Hijacking, Pilferage, and Facility Thefts, preserving the data and trends of thefts affecting full truckloads.

Executive Summary

In 2019, the SensiGuard Supply Chain Intelligence Center (SCIC) recorded 703 cargo thefts throughout the United States in 2019: 146 in Q1, 147 in Q2, 169 in Q3 and 241 in Q4. The average value of these thefts was $118,396. These numbers represent a 17% increase in volume and a 22% decrease in average value when compared to 2018.

While average value did drop, the volume grew at a rate not seen for several years. Organized cargo thieves in the United States have once again diversified into advanced cargo theft techniques and will continue to hone their processes in pursuit of highly targeted shipments. As experience is gained and intelligence is gathered, average values will likely catch up with the increase in theft volume.

2019

Page 2: Cargo Theft Annual Report - SCRIP · Cargo Theft Annual Report United States & Canada Introduction The SensiGuard® Supply Chain Intelligence Center (SCIC) actively tracks and records

sensitech.com U.S. & Canada Cargo Theft Annual Report 2019 2

With an average of 59 reported cargo thefts per month, the United States sustained cargo thefts at a rate of 1.93 per day in 2019. Overall, the United States is ranked as HIGH threat level for cargo thefts on the SCIC five-point risk scale, which ascends from LOW to MODERATE, ELEVATED, HIGH and finally to SEVERE.

It should be noted that delays in incident reporting typically cause measurable increases in theft volumes in the weeks following publication of SCIC reports. As such, the most recent totals for the year are expected to rise above those recorded thus far. It is the SCIC practice to use updated theft numbers for past timeframes when comparing them to current totals.

Some of the most notable trends covered in this report are as follows:

• Volume of cargo thefts increased for the first time since 2011

• Electronics narrowly claims the most stolen product type for the second consecutive year

• Pilferage rate and value break records for third year in a row

• Continued increase in Miscellaneous thefts, primarily less secured LTL shipments containing targeted merchandise

• Theft volumes in North Carolina and Virginia on the rise

• In-Transit thefts recorded for the first time in the U.S

Major Trends

2019 saw an upward trend in reported cargo theft volume for the first time since 2011. Recent pursuits into atypical and advanced cargo theft types have led to the increase of cargo theft volume in the United States for the first time in eight years. Primarily, the rise in Pilferage has fueled the increase.

Large scale Pilferage events continued to break records throughout 2019. Pilferage accounted for 38% of thefts in 2019, the highest on SCIC record for the third year in a row. This represents a 115% increase over 2018’s previous record and an increase of 218% since 2015. Additionally, the average value of Pilferage has been steadily on the rise every year since 2016, and in 2019 was $112,227, an increase of 114% over 2016. Thieves have learned that valuable intelligence can be gathered while obtaining high value merchandise by penetrating a trailer or container, stealing some of the product, and then drawing back to see what (if any) response occurs.

Organized thieves in the U.S. have long utilized a “risk vs reward” calculation when targeting cargo. As such, Pilferage is being increasingly utilized as a method to reduce risk for subsequent, larger, full truckload thefts. This allows for targeting of products or specific shipments that provide a lesser chance of capture or disruption. This can be seen in the continued increase of reported mixed retail loads, or less than truckload (LTL) thefts. These shipments are typically a mix of product destined for a brick and mortar retail store.

Diligent and organized thieves can still utilize their criminal network to identify the contents of these loads before making contact, which if they contain desired products, typically have less security measures in place than a dedicated trailer of one high value/targeted product. Often times the loss to any single owner on these loads may be too low to trigger a police report or insurance claim, which can hinder the awareness of the issue.

During 2019, the SCIC did not record the use of signal interference devices (jammers) in a cargo theft, which have not been seen since 2014. The SCIC continues to monitor for any

#THEFTS AVG VALUE US$

2015

2016

2017

2018

2019

0

100

200

300

400

500

600

700

800

U.S.—Cargo Theft by Year and Value2015– 2019

$0

$50,000

$100,000

$150,000

$200,000

Facility Theft

Fictitious Pickup

Hijacking

Pilferage

2015

2016

2017

2018

2019

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

U.S.—Atypical Cargo Theft Types2015– 2019

Page 3: Cargo Theft Annual Report - SCRIP · Cargo Theft Annual Report United States & Canada Introduction The SensiGuard® Supply Chain Intelligence Center (SCIC) actively tracks and records

sensitech.com U.S. & Canada Cargo Theft Annual Report 2019 3

jamming activity related to cargo crime in the United States and other regions of operation. While the jamming threat in the U.S. remains low today, SCIC continues to see frequent jamming activity in non-U.S. regions. SensiGuard has programs and technology in place to mitigate the jamming risk. With the availability of jamming technology in the U.S., it is reasonable to anticipate the expanded use of jamming by criminals. This would drive the need to implement countermeasures in the U.S. to mitigate the jamming risk.

Cargo Theft by State

2019 recorded 44% of total theft occurring in the top three states. This represents a 14% drop from the rate of thefts for the top three states in 2018, which was 7% lower than 2017. This continued drop in theft rate from the top three marks the geographical diversification of cargo theft within the United States. Additionally, cargo theft was recorded in 40 different states during 2019, up from 38 in 2018. While the top hotspots for cargo theft remain largely unchanged, volumes are shifting and organized thieves are traveling farther to obtain their targeted cargo.

California, which logged 23% of total thefts in 2019, claimed the top spot for cargo theft again, but with 10% drop in theft rate compared to 2018, which followed a 9% drop from 2017. Texas, steady at number two, recorded 11% of total thefts in 2019, a 30% drop from its 2018 theft rate. Georgia, meanwhile, jumped from fifth rank in 2018 to claim the number three spot with 10% of total thefts in 2019, a 34% increase year over year. Florida dropped by 14% from last year to account for 9% of the total and place fourth in 2019 while Illinois fell by 34% to land in fifth with 7%. North Carolina was not on the top 10 list in 2018, but increased its theft rates by 591% to place at 10th in 2019. Notably, Virginia also recorded a large increase (+1071%) to account for 2% of the total in 2019, ranking 12th.

The states that top the cargo theft landscape do so largely due to a few important factors such as the presence of large seaports,

whose high volume of cargo allow for many information gathering opportunities for organized thieves, and the confluence of major interstates which offer target rich and under protected truck stops.

In addition, the presence of Cargo Theft Task Forces in areas known to be hotspots of cargo theft activity does increase the level of uniform reporting in these areas. Knowing this, it is reasonable to believe that areas that record little to no cargo theft are likely still experiencing it, but inconsistencies in reporting lead to a lack of properly reported data.

Location can also indicate what product types are more at risk for cargo theft within certain states, due to what types of cargo are at higher concentration within those states.

For example, some product types and subtypes have very strong state specific trends. Examples include Building & Industrial, which recorded more thefts in Texas than any other state to account for 27% of total Building & Industrial thefts nationwide, and was the second most stolen product type within Texas, accounting for 17% of the state’s total. These rates, however, are both lower than what Texas recorded in 2018, suggesting that state specific product trends are more fluid than overall cargo theft hotspots.

Other states with disproportionally high thefts within a particular product type include: Alabama with 60% of its thefts coming from Home & Garden (11% of national total), California logging 27% of its thefts from Electronics (37% of the national total) and 16% from Clothing & Shoes (37% of national total), Florida with 11% of its thefts consisting of Auto & Parts, Georgia with 19% of its thefts coming from Home & Garden, Illinois with 19% each Electronics and Miscellaneous, Louisiana with 33% Auto & Parts, Maryland with 31% Home & Garden, Michigan with 43% Auto & Parts, New York with 80% Home & Garden, Utah with 100% Metals, and Virginia with 36% Electronics.

Cargo Theft by Product Type

Once again, albeit by a narrow margin, Electronics was the most stolen product type for an entire calendar year at 17% of the total in 2019, although this represents a drop of 15% from 2018. Food & Drinks also rounds to 17% of the total (+21% from 2018), although it was numerically less frequent than Electronics. Next in line were (in order) Miscellaneous (+57%) and Home & Garden (+1%), each rounding to 16% but having slightly different totals, while Auto & Parts (+7%) and Building & Industrial (-26%) had an actual tie at 7% of the total. Clothing & Shoes (6% of the total), also recorded an increase from 2018 of 4%.

2019 2018

Cal

iforn

ia

Ohi

o

Nor

th C

arol

ina

Virg

inia

Texa

s

Flor

ida

Illin

ois

Geo

rgia

Tenn

esse

eN

ew J

erse

y

Alab

ama

Penn

sylv

ania

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

U.S.—Top States for Cargo Theft2018 vs. 2019

Page 4: Cargo Theft Annual Report - SCRIP · Cargo Theft Annual Report United States & Canada Introduction The SensiGuard® Supply Chain Intelligence Center (SCIC) actively tracks and records

sensitech.com U.S. & Canada Cargo Theft Annual Report 2019 4

Cargo Theft by Product Type: Pharmaceuticals

In 2019, both the rate and average value of Pharmaceuticals thefts fell by 26% and 37%, respectively, to land at 2% of total thefts and an average loss value of $255,978. This included zero thefts valued at over $1 million, with 31%

of thefts reporting a value. Facility Theft within Pharmaceuticals is 831% more frequent than across all products, accounting for 39% of total Pharmaceuticals thefts, the highest rate of any single product type. As Pharmaceuticals are very cost dense, large profits can also be had with relatively small scale thefts, such as Pilferage, which is 39% of the total, while also serving as an advanced intelligence gathering method for criminals. The pharmaceutical industry has taken great strides to secure their supply chain, and their efforts are evident in the fact that it is one of the most desired, yet least stolen, products on the road today.

As is usual within the theft of Pharmaceuticals, the subtype Medication was the most often stolen subtype, with 85% of total thefts. The Supplies subtype recorded the highest average value for a subtype at $623,915, as well as the remaining 15% of thefts.

Cargo Theft by Product Type: Food & Drinks

Food & Drinks was, from 2010 to 2016, the most stolen product type each calendar year. This is due in part to the ease of sale of consumable items on the illicit market as

they are not uniquely serialized which would allow tracking of individual items, as well as the prolific amount of shipments of Food & Drinks on the road at any given time. In 2019, Food & Drinks accounted for just under 17% of total thefts nationwide, and ranked as the second most stolen product type by a narrow margin behind Electronics. California (25%), Florida, and Texas (16% each) were the top three states for Food & Drinks thefts in 2019, and together accounted for 57% of total Food & Drinks theft. The remaining 43% were recorded over 21 other states, making Food & Drinks the tied most geographically diverse of any single product type along with Home & Garden and Miscellaneous.

The most commonly stolen subtypes in this sector were Meats (16%), Coffee, Energy & Sports Drinks (14%), and Canned & Dry Goods (13%). Seafood recorded the highest average value within Food & Drinks at $210,354.

Cargo Theft by Product Type: Electronics

Electronics recorded 17% of total thefts in 2019, and had the third highest average loss value at $207,700. California (37%), Florida and Georgia (10% each), were the top three states for Electronics thefts, together accounting for 57% of total Electronics thefts.

Within the Electronics sector in 2018, 44% of thefts were Televisions & Displays, 14% were Audio & Video products, and 12% were Mixed & Miscellaneous. By theft type, Pilferage accounted for 54% of Electronics thefts, a rate second only to Alcohol, while Facility Theft accounted for 7% and Fictitious Pickups accounted for 4%.

U.S.—Cargo Theft by Product Type2019

Electronics 17%Food & Drinks 17%Home & Garden 16%Miscellaneous 16%Building & Industrial 7%Auto & Parts 7%Clothing & Shoes 6%Metals 4%Alcohol 4%Personal Care 3%Pharmaceuticals 2%Tobacco 1%

17%

17%

16%

16%

7%

7%

6%

4%

4%

3%

2%1%

2015

2016

2017

2018

2019

0

2

4

6

8

10

12

14

16

U.S.—Pharmaceutical Thefts byYear and Event Type, 2015– 2019

Facility Theft

Fictitious Pickup

Hijacking

Pilferage

Theft of Full Truckload

% OF TOTAL AVG VALUE US$

Can

dy, C

ooki

es&

Snac

ks

Can

ned

& D

ry G

oods

Cof

fee,

Ene

rgy

& Sp

ort D

rinks

Dai

ry &

Egg

sFr

ozen

Foo

dsM

eats

Mix

ed &

Mis

cella

neou

sM

ixed

Loa

d

Nut

sPr

oduc

eSe

afoo

dSo

das,

Jui

ce,

Tea

& W

ater

0.00%

5.00%

10.00%

15.00%

20.00%

U.S.—Food & Drinks Thefts bySubtype and Value, 2019

$0

$50,000

$100,000

$150,000

$200,000

$250,000

Page 5: Cargo Theft Annual Report - SCRIP · Cargo Theft Annual Report United States & Canada Introduction The SensiGuard® Supply Chain Intelligence Center (SCIC) actively tracks and records

sensitech.com U.S. & Canada Cargo Theft Annual Report 2019 5

Cargo Theft by Product Type: Home & Garden

In 2017, Home & Garden was the most stolen product type, accounting for 17% of the total and an average value of $66,820, while in 2018, Home & Garden theft rate dropped to second and accounted for 16%. In 2019, it accounted for 17%

of the total and an average value of 87,733. This is a 6% increase in theft rate and a 75% bump in value compared with 2018, yet due to surges in other product types it has fallen in rank to fourth behind Miscellaneous.

Appliances, which accounted for 23% of total Home & Garden thefts, was the most stolen subtype, followed by Cleaning Supplies & Products with 14%. Sporting Goods, at $191,873, had the highest average value. California (14%), Georgia (12%), and Alabama (11%) were the top states for Home & Garden thefts, totaling 37% of total Home & Garden thefts nationwide. While Theft of Full Truckload is the most practiced method of theft within Home & Garden at 64% of the total, Pilferage (35%) and Fictitious Pickup (1%) were also seen.

Cargo Theft by Product and Value

The average loss value per theft incident in 2019 was $118,396, a 22% decrease compared to 2018. The U.S. average value peaked in 2009 at $554,105 and since then the average loss value has been on a steady decline (with the exception of 2014 seeing a spike to $232,924, a 36% spike from 2013). In 2019 there were four thefts that were valued at $1 million or more, with a value reporting rate of 59%, compared to 2018 in which one theft was valued at over $1 million and 90% of incidents reported a value. The decline in value reporting coupled with the increase in Pilferage (which are lower value relative to full truckload thefts) are the likely culprits in the falling average value.

Some product types nonetheless recorded significantly higher average values in 2019 when compared to 2018, such as Food & Drinks (+15%), Home & Garden (+29%), and Metals (+105%). Personal Care ranked as the highest average loss value with $263,926.

% OF TOTAL AVG VALUE US$

Audi

o &

Vide

o

Cam

eras

Com

pute

rsG

ames

, Con

sole

s

& Ac

cess

orie

s

Cel

l Pho

nes

&

Acce

ssor

ies

Mix

ed &

Mis

cella

neou

sO

f�ce

Ele

ctro

nics

Softw

are,

Com

pone

nts

& Pe

riphe

rals

Tabl

ets

& E-

read

ers

Tele

visi

ons

& D

ispl

ays

Und

ecla

red

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

U.S.—Electronics Thefts bySubtype and Value, 2019

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

% OF TOTAL AVG VALUE US$

Appl

ianc

esB

eddi

ng &

Bat

hC

lean

ing

Supp

lies

& Pr

oduc

tsFu

rnitu

re &

Déc

orKi

tche

n Su

pplie

sLa

wn

& G

arde

nM

isce

llane

ous

Pape

r Pro

duct

sPe

t Sup

plie

sSp

ortin

g G

oods

Toys

& G

ames

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

U.S.—Home & Garden Thefts bySubtype and Value, 2019

$0

$50,000

$100,000

$150,000

$200,000

$250,000

% OF TOTAL AVG VALUE US$

Alco

hol

Auto

& P

arts

Bui

ldin

g &

Indu

stria

lC

loth

ing

& Sh

oes

Elec

troni

csFo

od &

Drin

ks

Met

als

Hom

e &

Gar

den

Mis

cella

neou

sPe

rson

al C

are

Phar

mac

eutic

als

Toba

cco

0.00%

5.00%

10.00%

15.00%

20.00%

U.S.—Cargo Theft byProduct and Value, 2019

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

Product TypeAvg. Value

U.S. 2019

Avg. Value

U.S. 2018

Alcohol $51,891 $114,130

Auto & Parts $90,253 $104,921

Building & Industrial $74,292 $151,413

Clothing & Shoes $121,082 $389,402

Electronics $207,700 $221,105

Food & Drinks $87,733 $76,233

Home & Garden $64,714 $50,044

Metals $128,156 $62,656

Miscellaneous $82,698 $117,396

Personal Care $263,926 $285,443

Pharmaceuticals $255,978 $406,139

Tobacco $54,000 $148,080

Total $118,396 $151,502

Page 6: Cargo Theft Annual Report - SCRIP · Cargo Theft Annual Report United States & Canada Introduction The SensiGuard® Supply Chain Intelligence Center (SCIC) actively tracks and records

sensitech.com U.S. & Canada Cargo Theft Annual Report 2019 6

Cargo Theft by Event Type and Location

Due to risk of capture, cargo thieves in the United States largely tend to target loaded trailers and containers that are stationary and unattended. Fictitious Pickups (FPU) rose by 48% from 2018 to 2019 to account for 4% of the total. The continued masking of these crimes which often are not discovered to be an FPU until many months after the initial report of theft, as well as reluctance on the part of victim companies to come forward fearing brand damage, Fictitious Pickups continue to be the most underreported type of large scale cargo theft and are likely occurring at volumes much greater than statistics indicate. Pilferage, which broke theft rate records in both 2017 and 2018, did so again in 2019 when it accounted for 38% of total thefts with an average value of $112,227 (also a record high). This is a 114% spike in Pilferage rate coupled with a 15% jump in average value. Within atypical theft types, it is worth noting that Facility Theft had a disproportionate amount of thefts happen in Georgia (21%, most of any state) and Fictitious Pickups had more incidents occur in Texas (29%) than anywhere else.

In 2019, 80% of all thefts with a known location occurred within Unsecured Parking, down from 83% in 2018. The most frequently targeted Unsecured Parking areas were Truck Stops (28%), Public Parking (19%), and Drop Lot (14%). Theft from Secured Parking fell from 9% of known locations in 2018 to 7% in 2019. Notably, even at <1%, In-Transit thefts were recorded in the United States for the first time, with three separate incidents taking place in Southern California in December. All of these incidents targeted Electronics products while momentarily stationary at traffic signals or similar. The SCIC issued a security bulletin about these thefts in early December.

*There is no general consensus within the industry as to the definition of “secured parking”, and this designation is assigned only when the theft report indicates that the location was a secured parking area.

Cargo Theft by Date

Cargo theft by month followed a typical fourth quarter heavy pattern in 2019, with some key differences from 2018. While 2018’s highest theft rate occurred in July (11%), 2019 saw November as its highest theft month, with 14% of the total. This is in line with previous trends that saw thefts escalate as the holiday shipping season was at its peak. In 2019, the three highest theft rate months were all of the fourth quarter months, October (10%), November (14%), and December (11%). The month with the lowest theft rate was once again, as in 2018, February (5%), with April (6%) coming next.

Consistent with historical trends, weekend days persist as the most popular days of the week among thieves, as they are the times when in-transit cargo is more likely to be stationary and unattended. In 2019, Saturdays and Sundays together accounted for 36% of all thefts, a number that climbs to 53% if Fridays are included. Similarly, Facility Thefts tend to occur over the weekend while most employees are off work and minimal security is in place. This also delays the discovery of a theft and allows thieves greater time to escape before law enforcement is notified. In 2019, 48% each of Facility Thefts occurred on a Saturday or Sunday, which jumps to 62% when Fridays are included in the count. Within Fictitious Pickups, 61% occurred on Wednesday, Thursday or Friday, which all allow for the maximum amount of lead time for the criminal before the theft is discovered, depending on the length of the trip.

2019 2018

Janu

ary

Febr

uary

Mar

ch

April

May

June

July

Augu

stSe

ptem

ber

Oct

ober

Nov

embe

rD

ecem

ber

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

U.S.—Cargo Theft by Month2019 vs. 2018

0.00% 5.00% 10.00% 15.00% 20.00% 25.00%

U.S.—Cargo Theft by Day of the Week2019

Sunday

Monday

Tuesday

Wednesday

Thursday

Friday

Saturday

U.S.—Cargo Theft by Event Type2019

Theft of Full Truckload 54%Pilferage 38%Fictitious Pickup 4%Facility Theft 4%

54%

38%

4%

4%

Page 7: Cargo Theft Annual Report - SCRIP · Cargo Theft Annual Report United States & Canada Introduction The SensiGuard® Supply Chain Intelligence Center (SCIC) actively tracks and records

sensitech.com U.S. & Canada Cargo Theft Annual Report 2019 7

Canada

Historically an area of low reporting, the cargo theft issue in Canada is nonetheless well known. In 2019, the problem continued to gain media attention (link), with calls for organized and unified efforts to curb the impact of cargo theft on the supply chain, and new reports (link) already decrying the issue in 2020. Despite that, industry-wide reporting still trails behind that of the United States. Organized cargo thieves in Canada are just as sophisticated as they are in the United States, often utilizing the same methods and criminal networks not only to target products, but also to liquidate them. The SensiGuard SCIC recorded a 28% decrease in volume in Canada compared to 2018; however, that was coupled with a 322% increase in average value, to $345,680.

In 2019, cargo theft in Canada was recorded in five different provinces, steady with 2018. The majority of theft occurred in Ontario (75%), centered near the most severe Canadian hotspot of the Greater Toronto Area. Beyond Ontario, 19% of thefts occurred in Quebec, and 2% in each British Columbia, Alberta, and New Brunswick.

When examining product types, Food & Drinks is the most stolen product type (31%), likely for the same reasons this product type is popular with thieves in the U.S., namely its abundance, ease of liquidation, and lack or serialization or security. Notably, some product types did record elevated theft rates despite the overall downward trend in Canada. Auto & Parts recorded 6% of the total despite not appearing at all in 2018, Building & Industrial rose by 179% to capture 8% of the total, Electronics rose by 109% to 6% of the total, and Miscellaneous rose by 249% to capture 21% of the total, mirroring the rising popularity of LTL mixed freight seen in the United States. At $6,900,000, Electronics claimed the highest average loss value.

Also worth noting, Canada recorded increases in several atypical theft types in 2019 despite the overall drop in volume. While Theft of Full Truckload remains the most popular method with 69% of total thefts, Fictitious Pickups accounted for 19% of Canadian cargo theft in 2019, a dramatic 527% increase over 2018. Additionally, Hijacking (2%) and Pilferage (6%) logged thefts while being notably absent in 2018.

While industry incident reporting lags behind, cargo crime in Canada is likely to rise until cargo theft specific legislation is passed and better data is available to understand the problem.

Conclusion

The SensiGuard Supply Chain Intelligence Center (SCIC) considers the threat of cargo theft in the United States and Canada to be on the rise. This is due, in part, to the continued increase in the level of organization and sophistication of criminal groups focusing on cargo, and the relatively minor penalties often associated with cargo crime.

There continues to be a significant underreporting of cargo theft in the United States and Canada, which makes it difficult to paint a complete picture. SensiGuard expects these trends to continue unless all layers of the supply chain share information so that we, as an industry, can continue to combat the criminal element and secure the global supply chain.

For more information on Sensitech or our logistics security services please contact: [email protected]

% OF TOTAL AVG VALUE US$

Alco

hol

Bui

ldin

g &

Indu

stria

lC

loth

ing

& Sh

oes

Elec

troni

csFo

od &

Drin

ks

Met

als

Hom

e &

Gar

den

Mis

cella

neou

sPe

rson

al C

are

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

Canada—Cargo Theft byProduct and Value, 2019

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

Page 8: Cargo Theft Annual Report - SCRIP · Cargo Theft Annual Report United States & Canada Introduction The SensiGuard® Supply Chain Intelligence Center (SCIC) actively tracks and records

sensitech.com

Sensitech Inc. Global Headquarters • 800 Cummings Center • Suite 258X • Beverly, MA 01915-6197

1-800-843-8367 • +1-978-927-7033 • Fax: +1-978-921-2112 • [email protected]

The information contained in this document is the property of Sensitech Inc. This information may not be sold, licensed, or used for business development in any capacity without the prior written consent

of Sensitech Inc. Sensitech Inc. encourages recipients to use this information for cargo theft prevention activities and to share this information in its entirety with colleagues who may also benefit in a theft

prevention capacity. Where possible, we have elected to maintain news articles and briefs in their native grammatical format. ©2020 Sensitech Inc.

A Carrier Company

27 Jan 2020

About SensiGuard Security Services DataUnless otherwise noted, the theft statistics in this assessment are derived from data collected by the SensiGuard Supply Chain Intelligence Center and other information collected from reliable sources. The Intelligence Center captures cargo theft and supply

chain risk data from numerous sources across the globe. These include, but are not limited to, the databases of SensiGuard Security Services, its customers, law enforcement agencies, industry organizations, insurance industry sources, and news reports. This report offers an analysis of the data collected during 2019, providing insight into cargo theft and supply chain risk across the globe.

Please note that cargo theft goes largely unreported; as such, total theft figures for a particular country or region are likely higher than stated. In addition, global cargo theft circumstances and risks change, sometimes frequently and quickly, and in ways that may make the facts and opinions expressed here no longer valid. Therefore, the extent to which organizations rely on the information provided in this assessment should be solely at their discretion.

About SensiGuard Security ServicesSensiGuard Security Services is a leading provider of global logistics security services, offering tracking and monitoring solutions that provide organizations with cargo security, transparency and supply chain integrity from origin to destination. Using real-time visibility technology and layered solutions, organizations can actively monitor their cargo anywhere in the global supply chain to mitigate the risks associated with theft, spoilage, counterfeiting and more. With operations across the globe, SensiGuard is uniquely positioned to deliver services regionally across diverse supply chains.

SensiGuard Security Services is part of Sensitech Inc., a leading provider of supply chain visibility solutions. Sensitech is focused on delivering supply chain visibility solutions that track, monitor and protect products for global leaders in the food, life sciences, consumer goods, and industrial markets. Our solutions are focused in three key areas: quality and compliance, supply chain security, and logistics performance management. Quality and compliance solutions address temperature-sensitive, complex supply chains focused on delivering the highest quality possible, while our supply chain security solutions help to mitigate risks associated with theft, diversion and chain of custody. Sensitech’s logistics performance solutions deliver origin-to-destination, real-time transparency to any in-transit journey. Sensitech Inc. is an ISO 9001:2015 company, headquartered in Beverly, Mass., with over 35 sales, service and distribution locations around the world. Sensitech is a Carrier company, a leading provider of heating, air conditioning and refrigeration systems, building controls and automation, and fire and security systems leading to safer, smarter, sustainable and high-performance buildings.

More information about Sensitech is available at www.sensitech.com

To register to receive alerts, bulletins and reports, please visit the SensiGuard Supply Chain Intelligence Center