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Cargo theft drops during third quarter

by Admin14. November 2013
Cargo theft has dropped significantly from a year ago.Cargo theft has dropped significantly from a year ago.

There are a number of risks involved in transporting goods, including product theft. While a sudden storm or a traffic accident can cause delays, stolen merchandise can be particularly costly to organizations. Fortunately, a recent report by the Supply Chain Information and Analysis Center found that incidents of cargo theft dropped significantly from last year.

Forbes reported that there were just 195 reported thefts during the third quarter, down from 285 cases during the same period of 2012. Traditionally, the third quarter sees the most cases of stolen property as companies are working to stockpile inventory for the end of the year. The news has many companies hoping that the drop in crime will be the start of a positive trend for the industry, but it is too soon to know for sure.

Cargo theft is a significant risk that all companies face. The merchandise needs to be replaced and the delays could cause inventory problems that reduce customer satisfaction. It is estimated that the annual losses from missing freight reach $35 billion annually. Fortunately, trucking logistics firms are taking steps to protect their products.

Cases of fraud become more common
Risk management is a cornerstone of effective logistics. Trucking companies are continually improving their strategies for mitigating damages to minimize the cost of specific incidents. Increasingly, trucking companies are cooperating to share information about where thefts are occurring and how to help identify potential criminals. This communication is also allowing businesses to identify new threats. For instance, Overdrive Magazine stated that there has been an increase in the use of fraud as a means of stealing cargo. Criminals steal or fake trucking licenses to pick up items directly from unsuspecting suppliers.

The use of fake credentials is proving that heavy-haul trucking companies need to maintain high levels of protection on electronic documents. The source noted that hackers are able to adjust the pickup time for shipments to avoid complications during loading. In many cases of fraud, the supplier believes that the truck that arrives is the properly scheduled pickup and no one has any idea that the merchandise is stolen until it is miles down the road. 

To fight these types of thefts, refrigerated trucking companies are working with state and federal authorities to limit access to trucking credentials. If criminals are unable to fake the forms and licenses required to trick victims, then they are less likely to try stealing merchandise. Taking steps to reduce the risk of theft creates savings for businesses and boosts their ability to serve their clients.

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