The increased volume of high-value, high-demand goods in transit and in warehouses during the holiday season presents an increased risk of cargo theft, often by increasingly sophisticated networks of gangs from Latin America, Asia and the Caribbean.  Its low level of danger and short prison sentences compared to other forms of lucrative criminal activity make it an attractive and common activity, especially at this time of year. At the recent National Cargo Theft Summit in Washington, Kevin. L. Perkins, assistant director of the Federal Bureau of Investigation’s criminal investigation division, estimated that cargo theft costs $30 billion annually.

Several factors increase the risk. First, shipping companies often rely on unfamiliar, third-party trucking companies without fully understanding their security practices. Second, the increase in stock requires secondary storage locations, multiplying the number of potential targets for cargo theft. Additionally, the unusually high amount of merchandise presents an increased probability of mistakes by employees or drivers – including the failure to use a good kingpin locking device or inadequate supervision of the vehicle.

What can risk managers do to combat the increased risk during the holiday season? At any time of the year, but especially during this high-risk period, it is important that a risk manager review and reinforce the company’s security policy, ensuring that drivers use the locking devices they are provided along with tracking devices. Effective communication helps, too, ensuring that employees are updated on policies and engaged in them.

In addition to taking steps to prevent cargo theft, companies must be sure to protect themselves with appropriate insurance policies. We can assist you in determining which coverage is right to protect your goods during the holiday season and all year round. This e-mail address is being protected from spambots. You need JavaScript enabled to view it   for more information.

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