U.S. cargo theft totals reach $130 million Food and beverages now the most frequent stolen item By Peter A. Buxbaum, AJOT It’s hard to know how many incidents of cargo theft take place in the United States on a yearly basis, but one thing is clear; the number of incidents reported in 2011 exceeded that of 2010, according to a report released by CargoNet. CargoNet, formed by Verisk Analytics and the National Insurance Crime Bureau in 2009, developed and manages a national cargo theft database and information sharing system. The organization encourages transportation, manufacturing, and retail professionals to provide information about cargo theft incidents as quickly as possible to law enforcement authorities. Information sharing is important in order to define, measure, and analyze cargo theft incidents, according to CargoNet, and to enable the implementation of solutions that can help prevent cargo theft and related supply chain disruptions. Among the key findings of the report, CargoNet recorded 1,215 cargo theft incidents in 2011, an increase of 17 percent over 2010. Prepared food and beverage products became the most stolen commodity in 2011, overtaking electronics. Prepared food and beverage, electronics, base metals, apparel, and animals and animal products represented 59.4 percent of all commodity types reported stolen. Most cargo theft incidents occurred around the weekend at locations such as truck stops, terminal lots, and unsecured parking lots. Most of the incidents were concentrated in a few metropolitan areas. In 2011, there was an increase in the theft of low value shipments of less than $50,000, and a decrease thefts in the $50,000 to $100,000 and the over $100,000 range. “This report is an example of how far we’ve come in public-private collaboration efforts at a time when budgetary pressures make such strategic alliances more important than ever,” said Tony Canale, vice president of Verisk Crime Analytics. “We have much further to go, but the momentum is building.” In order to underscore the importance of cargo theft reporting, CargoNet entered an agreement with AGCS Marine Insurance Co., the U.S. affiliate of Allianz Global Corporate & Specialty to help policyholders protect their trucks and cargo in transit. AGCS Marine policyholders who use CargoNet’s deterrent signage and report their loss to law enforcement and CargoNet within one hour of theft discovery will have their deductible waived up to $5,000. In addition, Allianz insureds will pay 20 percent less for their CargoNet membership than regular clients. “It really makes a difference whether a theft is reported immediately or a day later. It’s much more likely that we can help law enforcement recover the cargo if it’s reported quickly,” said Garry Rivell, vice president of insurance services for CargoNet. According to the CargoNet report, cargo theft has historically been affected by several specific factors, all of which are borne out by the 2011 figures. “Cargo theft incidents are more likely to happen in a cargo rich environment, such as economically developed areas with clusters of distribution centers, warehouses, transportation network hubs, and container ports,” said the report. “Locations with elevated levels of urbanization are ideal places for cargo thieves to conduct business.” Likewise, cargo theft incidents are likely to occur within highly populated areas that contain container ports. It is easy to resell stolen goods at higher prices in those locations due to convenient access to local gray and black marketplaces. In addition, these ports make convenient locations from which to ship stolen cargo to buyers in foreign markets. Cargo theft patterns are positively correlated to certain primary trends including economic climate, income level, poverty level, and job availability. Areas with better economic conditions will see more cargo theft. The longer the distance cargo is hauled, the higher the chance it will be stolen. This is because of the increased number of driver rest and ref