the good, the bad, & the ugly mexico cargo transit strategies annual meeting presentations/6.a...
TRANSCRIPT
The Good, The Bad, & The Ugly Mexico Cargo Transit Strategies Presented by: Barry Conlon, CEO
Agenda
State of Cargo Theft in Mexico Theft Locations Theft by Commodity 2011 Major Trends The Good, The Bad, & The Ugly in Mexico Logistics Security Best Practices in Mexico
Cargo Theft Risk - Mexico
2011 Cargo Theft Incidents -Mexico
• Total Incidents Reported – 10,000+ • Incident frequency is increasing • Most incidents involve
confrontations with the driver(s) • Theft events are predictable by
region/route
Modus Operandi & Location
The Central and North Eastern states have the highest rates of theft
84% of thefts occur in transit (hijacked)
Trucks parked on the road
side or at a truck stop make up an additional 10%
Theft By Commodity
2011 Major Theft Trends - Mexico
• Rail theft increased by 120% • Metals, textiles, electronic & grains
• Metal thefts are on the rise • Scrap, finished product, & raw metals
• Natural gas and chemicals thefts incidents are spiking • Tanker trailers with any type of fuel are targeted
• Corruption is a ongoing issue across the public and private sectors
Operating in the Mexican Environment The Good, The Bad, & The Ugly
THE UGLY
The Ugly: Drug Cartels are Still Fighting
Cartels continue to fight for control of the drug routes in the U.S. Fire fights, and road block are a regular occurrences that affect the supply chain
Many senior Cartel leaders have been taken into custody and the younger leaders tend to be more violent and have no respect for human life.
THE BAD
The Bad Cargo theft risk are increasing
Theft rates continue to increase
The number of high risk areas is increasing Puebla, Veracruz, & Saltillo reported sharp
increased in theft in 2011 Mexico City remains as the highest risk area Puebla passed Guadalajara as the city with the
second highest incident rate
THE GOOD
THE GOOD Risk Mitigation Programs Work
Cargo theft risks are predictable and manageable Proper theft mitigation programs are having tremendous success With the proper networks law enforcement can be relied on to react to theft events
Mexico – Best Practices
Risk must be assessed by lane and route – Even road variances can affect risk
Monitor criminal activity real-time
– Be prepared to avoid cartel activity (fire fights, road blocks)
Shipments with armed escorts are experiencing higher rates of attack
Mexico - Best Practices (con’t)
Networking with law enforcement is critical Recovery of stolen cargo is becoming
more common Security programs need to be layered to
ensure success – Covert tracking programs are having
tremendous success Reacting immediately to a attempted theft
is critical in the recovery process
