Nuts! Cargo Thieves Set Eyes on Food and Beverage

Editor’s Note: Michael Meeks is the Director of Risk Management for AFN. He has more than 13 years of experience in the risk management and insurance industries, including 11 years in multi-line commercial and transportation claims. At AFN, Michael oversees the Risk/Legal Department, including its claims, compliance and security division.

When cargo thieves target shipments, they typically go for goods which are high value yet easy to liquidate. The home-grown hijacker, looking for targets of opportunity, passed from the scene years ago. They were replaced with crews of professional operatives with sophisticated and highly analytical approaches to identifying high-resale-value goods and finding vulnerabilities in freight networks.

And this year, in response to the industry's ongoing efforts to protect itself, they are likely to be going after nuts. That's right: nuts.

In California – a noted cargo theft hot spot – thieves went after tree nuts with alacrity in 2014 and 2015. And, concern is so high that a bill protecting nuts and nut shipments has been introduced into the California State Assembly. Nuts are now highly sought after because – when packed – they have a high density per shipping container and therefore a high resale value per truckload. They are also typically accompanied by lower attendant security, and they're quickly consumed after sale, meaning the window for recovery is smaller.

Nut theft rings are emblematic of a new trend, which sees would-be thieves increasingly targeting food and beverage loads. As security tightens in response to theft, higher-value items such as consumer electronics, pharmaceuticals and household goods are getting harder to steal. Drivers are vetted more carefully and credentials checked throughout the delivery process. Shipments are less idle, more in motion, and safe-zones are set up along the route to minimize roadside theft.

All this means that cargo thieves – ever watchful for the least risky theft opportunities – are looking for shipments that are less-guarded and more likely to be worth the time and effort to steal. Hence nuts.

Theft on the Rise, But Value on the Decline

This trend has been reported in several recent studies, and should interest everyone concerned with security in the supply chain and the bottom line. Industry watchdog CargoNet logged more than 1,500 cargo or equipment thefts in 2015, compared to 844 in 2014. In its annual theft trend analysis, CargoNet also identified food and beverage items as those most commonly stolen, totaling 28 percent of all lifted cargo. Electronics and household items each accounted for 13 percent of all stolen items.

Likewise, of the 221 reported cargo thefts FreightWatch International received in Q1 2016, the average value of each load lost was $112,467, a 56 percent decrease compared to stolen goods during the same quarter in 2015. FreightWatch also reported food and beverage as the leading theft target, well ahead of electronics, which topped FreightWatch's report in 2008.

In each report, the shift from higher-value to lower-value goods is notable.

When and Where is Cargo Vulnerable?

While the type of cargo stolen is changing based on enhanced security, the timing of reported theft seems to remain consistent with past findings. The CargoNet report also delves into the timing of theft. Data shows that nearly half of reported cargo theft (49 percent) takes place Fridays through Sundays, with Fridays being the busiest day. CargoNet further reported that Wednesdays are least likely for cargo theft to occur.

The location of thefts has shifted a bit recently, as well. More organized thieves are increasingly staking out shipping centers, rather than simply setting up shop along the road. This makes sense given the target. Thieves are cognizant of food and beverage shelf life. They also use this method to establish shipping patterns and identify vulnerabilities. This makes implementing stringent security measures at the point of load hand-off doubly important. Here are a few examples every shipper and logistics provider should follow to safeguard cargo.

With this knowledge and awareness, stakeholders can mitigate against potential loss by preparing themselves and all links in the supply chain to minimize risk. Avoiding over-weekend transit and prolonged idle time in higher-theft areas will help, but such risks are often unavoidable. If it's not possible to modify clients' preferred Monday delivery, making use of safe harbors and ensuring that freight remains in motion as much as possible will help make weekend transit more manageable, especially for transit through higher-risk areas with these increasingly targeted cargo types.

Tree nut theft is just one example of the analytical approach organized cargo thieves take in response to stakeholders' efforts to defend the supply chain. But, by being assiduous about reporting theft, by monitoring the type of freight stolen and location of theft incidents, and by continuing to improve security practices, carriers, shippers and logistics providers can stay a step ahead of the criminals.

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