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SPECIAL REPORT


As seen in most forms of cargo crime, it’s no longer just about targeting products with high unit values. There is definitely a shift towards more commodity-based goods because there is an easily accessible black market for them out there due to the reduction in manufacturing and online demand.


“We have had conversations in which we’ve heard that during the same week we have had issues, 20-30 other businesses have been targeted also, but with different commodities. So, the targets are clearly a whole range of goods, and it certainly seems to be OCG (Organised Crime Group) activity. This isn’t petty theft, it is well-planned with cross-border functionality and complexity, and there are networks to pass goods on to once they’ve been stolen.”


Of course, some would argue that many companies invite crime by the constant pressure to lower costs and the lack of sufficient checks on suppliers. The security manager we spoke to acknowledged that shippers and logistics providers can, in many cases, do more to prevent cargo crimes from occurring. “Manufacturers seek to move their goods as cheaply and as quickly as possible. Therefore, in terms of the cost per movement, this is typically a race to the bottom. Criminal gangs can exploit the use of freight auction sites as well as the lack of due diligence, on the part of the auction sites and primary carriers, and bid the lowest price to secure the collection. The tight margins mean there is little appetite for carriers to support additional security mitigation measures or spend.”


They added: “From a manufacturing perspective, we work to contractual agreements with our primary carriers where they are able to sub-contract legitimately within the terms of our contract. Where the issue comes is because of the shortage of drivers, trucks, and lack of capacity, certainly on the long-haul European lanes, so those subcontractors are then subcontracting again. In our case, that is clearly a breach of our terms. We do raise awareness of this issue, but I have to say the main interaction we have with carriers is typically after the event with insurers when it all comes to light after a cargo loss. That needs to change, and we need to be more proactive.


“There has always been an issue with ‘fake


carriers’ but we are certainly seeing more cases of this. I have spoken to various insurers and there is a trend to target collections moving cross-border or which take place right on the borders of countries. In such cases, it is very easy for criminals to get the load across into a different jurisdiction, making the reporting and investigation processes harder for victims of the loss as well as law enforcement agencies. We need to ensure the goods are shipped in the right way and that the right security is in place to manage that,


and carriers need to ensure they abide by the contractual


agreements and don’t engage in multi-layer subcontracting.”


Evidence in recent years has shown criminals are infiltrating freight platforms in various ways; including assuming identities of legitimate carriers and making small changes, such as to email addresses, to divert and direct communications to secure a load. Another M.O. is to use identities of companies which have very recently gone into administration or are no longer trading in order to bid for, and win, cargo loads for delivery.


“Industry has to take some responsibility because, having spoken with insurers and other companies which have suffered losses using operators found on freight exchanges, it’s clear that a lot of the issues are self-inflicted. In our attempts to drive down costs, we are feeding the problem and creating the opportunity which exists for criminals. It’s a self-fulfilling prophecy. If companies are not managing contractors or sub-contractors properly, they have to shoulder a big part of the blame when cargo loads are stolen.”


Law enforcement engagement is another problem area. As stated, a lot of crimes are cross-border between countries whose police forces “don’t talk or share data”. The security manager commented: “There is no level of collaboration to help


understand the extent of the problem. Industry


needs to start this conversation with law enforcement to showcase this issue. Proper engagement with LEAs will help us better understand what we need to do to support them in addressing this problem.”


In the meantime, for this company, engaging with LEAs continues to be frustrating, to say the least. “We work closely with insurers who collate similar issues over time. They have identified OCGs or individuals who they believe are responsible. The issue for us is we simply do not have the resources or capabilities to follow each one through. So, we support the insurance piece rather than doing any proactive engagement ourselves. From the law enforcement side, they take a report and that’s generally the last we hear of it. We rarely get any feedback.


“I think TAPA EMEA is a great conduit for raising awareness and a great forum through its articles and online briefings etc. TAPA can bring relevant groups together to get them talking and to understand the extent of the issue. The Association also has the reach to law enforcement to engage with them in a meaningful way. We go to individual police forces whereas TAPA can go to the broader collective, and that has more impact.


“I think the challenges we are discussing here reflect the simple fact that, in industry generally, we’re always chasing our tails. Criminals are always ahead of the game and exploiting technologies, and we are playing catch up. The traditional way of physical security was a silo approach, but as crime methodologies and technologies are advancing so quickly, we need to take a holistic approach to security which involves collaboration between all stakeholders to bring about a collective response.”


If you have intelligence to share on cargo crimes linked to operators sourcing loads via online freight exchanges, please send it to vigilant@tapaemea.org. All information will be treated in strict confidence.


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