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Nora Trueblood, Editor
Director ALC MarCom
4529 Angeles Crest Hwy., Suite 101
La CaƱada, CA 91011
(800) 475-5863 - Office
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Cargo Theft -
A 15-35 Billion Dollar Problem
We recently had three loads of tomatoes stolen in Florida. As the investigators dug a little deeper into the facts and circumstances they found that an additional five loads had also been stolen that same week. Food products are becoming popular with thieves, they had a home for the tomatoes before it was ever stolen and I doubt that they paid taxes on their profits! They had a good day but were actually arrested by the FBI which means this story had a happy ending...most don't!
Theft in the United States costs
consumers by some estimates, 15 to 35 billion dollars per year. With cooperation and collaboration amongst all parties in the distribution chain this could become more challenging to the thieves that they might be forced to try a real job. The parties I am referring to include growers, shippers, receivers, insurance companies, warehouse/shipping facilities, transportation brokers, carriers, lawmakers, law enforcement and a
company called CargoNet.
It is one thing to identify the problem and it is another to fix it. We have the technology to make both cargo and identity theft both unprofitable and risky for the thieves. So how do we do it? What we need to understand is this industry thrives because the crooks are able to easily steal and "fence" or resell this product with little or no problem. We either eliminate the theft or their ability to resell this product. Without a market to sell it to, it is a waste of time. So what are some of the ways to break the cycle?
- If both shippers and receivers required drivers to present both a fingerprint and photo identification then the thieves could be identified if there is a crime. The objection to this is that this is an invasion of privacy. This information could be secured in such a way that it would be destroyed or erased, unless there was a theft. Their information would and could be protected. Is this costly or time consuming? Absolutely not!
- Tractors, trailers and cargo should be equipped with GPS systems that cannot be jammed or rendered ineffective. It is only a matter of time before some company could develop the technology if there was the demand for it. This could be costly but not if the insurance companies were willing to give discounts for this kind of equipment.
- Manufactures, growers and shippers of all products should be able to put identifiable labels (RFID tags) or lot numbers on their product. Whether it is a tire, case of coke or a box of tomatoes, each shipment should have its' own ID number(s) that is traceable. It would then be possible to trace the sellers and buyers of the stolen goods.
- Law enforcement already has a lot on their plate but if we made catching the thieves easier that would get their attention. Make the penalties not worth the crime.
- Freight brokers are middlemen that bring the shippers and carriers together. We have a huge responsibility to make certain that we are executing our due diligence with every transaction. Thieves are clever and are using technology to present themselves as legitimate carriers, brokers and shippers. They attempt to scam us on a weekly basis and have been on some occasions successful. We are getting better at recognizing their game.
- Lawmakers could raise the ante for all the buyers and sellers of stolen property by punishing those involved in grand theft with stiffer sentences. Repeat offenders should be subject to longer sentences based on the number of offences. New Mexico, Texas and Mississippi all have pending legislation that will make cargo theft a costly prison sentence if apprehended with stolen property. Florida, Georgia, New Jersey and Texas already have laws in place that make cargo theft a specific crime with stiff punishment for offenders.
- Take a moment and check out CargoNet. They have built a "Cargo theft prevention and recovery network" that can offer assistance to all levels of the supply chain. Cargo Net has contacts with carriers, brokers, law enforcement, shipping/receiving clients and a database that helps to predict and prevent cargo theft. When a theft does occur they use their resources and contacts to recover the stolen property.
To some reading this, it might seem like a lot of effort and expense. To others it might seem like they are giving up some of their freedoms or privacy. The reality is that consumers are paying about 20% more for manufactured goods, food and clothing as a result of theft. This is all part of the 15 to 35 billion dollars that the thieves are stealing from all of us. For anyone out there that says we can't afford to pay for these safeguards, I would say you already are!
Bill Bess
Director, Carrier Development
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Bill
Bess,
Director of Carrier Development, was previously the manager of the Orlando, FL office, and has been with the Allen Lund Company for
33
years. With
43
years of experience in the transportation of perishable products, Bess' expertise includes perishable supply chain protocol.
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About Allen Lund Company: Specializing as a national third-party transportation broker with nationwide offices, the Allen Lund Company works with shippers and carriers across the nation to transport dry, refrigerated (specializing in produce), and flatbed freight; additionally, the Allen Lund Company has an international division, which is licensed by the FMC as an OTI-NVOCC #019872NF, and a logistics and software division, ALC Logistics.
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