11 Tips for Cargo Theft Prevention on the Road & in Warehouses
Cargo theft is a nationwide issue that has been prevalent since the days of horse and buggies, and it’s showing no signs of slowing down. According to Loss Prevention Magazine, estimated cargo loss in the U.S. is between $15 to $30 billion dollars annually. Curious why that figure is so wide ranging? Unfortunately, it’s impossible to know the exact loss number since many claims go unreported and the numbers of losses differ between companies. Nonetheless, it’s a significant amount of money lost.
Where are the thefts occurring?
The states in the US that have the most reported thefts are California (1), followed by New Jersey (2) and Texas (3). The most targeted locations are warehouses and secured freight yards, with an estimated average loss value of $250K per incident.
What is being targeted?
Food and beverages have been the most targeted commodities, followed by electronics. It’s interesting to note that home and garden product thefts are rising as well. There’s also a shift from truckload targets to less secure categories of cargo such as Less-than-truckloads (LTL) shipments or mixed retail loads.
At Assurance we want to make sure our clients have proper coverage in place for when a loss occurs. We also want to provide best practices and helpful steps to help minimize cargo theft risks both in warehouses and on the road. Check out our top 11 tips for minimizing cargo theft risk in the transportation industry:
- Screen Employees: it’s important to conduct background checks and screen all employees - not just drivers.
- Training: provide proper awareness and prevention for all drivers and warehouse employees.
- Maintenance: All aspects of the warehouse should be in good working order (lighting, alarms, generators, surveillance/fencing).
- Be selective: Carefully select transportation partners as they will have care, custody, and control of goods.
- Keep on moving: Drivers should not stop the first 200 miles/4 hours from their starting points as potential thieves could be waiting for them to leave their home base.
- Technology: Take advantage of technology like GPS vehicle shipment tracking.
- Report: Document all suspicious behavior to management - no matter how minor.
- Lock it up: All tractors should be secured with high-quality locking devices and steering column locks.
- Security: Make sure all trailers are secured with high security compliant barrier seals in addition to hardened padlocks.
- Stay together: Avoid having loaded trailers sit unattended.
- Audit: Conduct periodic audits to your shipment so you can notice any issues immediately.
Contact the Assurance ‘A’ Team to learn more about adding this important coverage and safety practices to your risk management portfolio.
- How Trucking Companies Can Save on Claims
- Group Transportation Exposures
- Survey Says: Transportation Workers' Comp Risks
ABOUT THE AUTHOR