Supply Chain Pileups Lead to Spike in Theft

The COVID-19 pandemic has caused chaos within our supply chain. Illness and uncertainty has resulted in severe staff shortages. Shipping costs are spiking, and deliveries are being significantly delayed.

The global supply chain makes the world go around, carrying products to their destinations each and every day, and usually right on time.

But all of this has come to an abrupt end over the last two years. Thieves have quickly stepped in to profit off of these newly weakened links in our supply chain.

  • According to CargoNet® , in 2021 reports of cargo-related theft across the West Coast increased 42% year-over-year, and as of Q4 2021, the company expected this trend to “remain elevated.”

  • Criminals are making off with everything from household goods and alcoholic beverages to much higher-value items.

  • In 2020, 48% of theft incidents involved "at least one heavy commercial motor vehicle, like a semi-tractor, semi-trailer, or intermodal chassis or container.” 

Transportation and Logistics Getting Hit Hard

Annual Losses From Cargo Theft Alone In The United States

Thefts
0
In Losses
$ 0 M

2016

Thefts
0
In Losses
$ 0 M

2017

Thefts
0
In Losses
$ 0 M

2018

Thefts
0
In Losses
$ 0 M

2019

Thefts
0
In Losses
$ 0 M

2020

Thefts
0
In Losses
$ 0 M

2021

One industry that’s getting hit hard on the front lines is transportation and logistics (T&L.) T&L includes the air and ground express delivery services, freight trains, trucks, cargo ships and more, that store and distribute goods from the manufacturers or warehouses to the consumer.

What makes T&L so vulnerable?

During COVID, consumers shifted their spending from traveling and out-of-home entertainment to things like clothing, electronics, furniture and other home goods and activities. E-commerce orders surged, causing a massive influx of imports ready for delivery.

But shortages of employees, like truckers, to deliver the products, along with rapidly declining warehouse space, to store the products before shipment, is causing unprecedented inventory backups. 

Many T&L companies tasked with holding inventory until it can be shipped are now at maximum capacity.

According to global real estate services firm CBRE, as of November 2021, warehouse space availability in the U.S. had reached a record low of 3.6%, a level many experts view as “effectively zero.” 

The Problem of Theft

T&L carriers and holding locations – warehouses, shipping ports, rail and truck yards and stops – are often full to the brim with goods sitting idle, waiting to be delivered.

These companies and locations are more exposed than ever to theft, which could lead to massive financial loss for businesses. And this fact isn’t lost on criminals. In the third quarter of 2021 alone: 

  • Union Pacific saw about 90 of its railway containers in LA County jeopardized every single day, resulting in $5 million in damages, losses and claims.

  • Union Pacific also experienced a 160% increase in theft, assaults and armed robberies along its rails in 2021 overall.

  • Securing Your Supply Chain

    Since experts are not expecting a return to a “normal” supply chain anytime soon, T&L companies need to be proactive with an effective security strategy to stop criminals from stealing and damaging their valuable goods. So what can they do?

    Focusing on basic security tips is important.

    • all-terrain-vehicle-color-fix

      Be conscious of where trucks, trains and other vehicles are parked.

    • low-or-no-light-color-fix

      If possible, choose areas that are well-lit at night, since thieves often operate, when visibility is at its lowest. Affordable, solar-powered lights can be put up quickly where needed.

    • white lock

      Lock all cargo doors and any surrounding gates and entry points, and consistently check for damaged locks or holes in the fencing.

    • Avoid parking vehicles too close to fencing, which can allow thieves to access storage containers right through the fence without leaving any evidence behind

    While these tips are important, 24x7x365 protection is also essential to deter criminals from making off with valuable cargo in unmanned trains, trucks, warehouses and other storage holding spots.

    Pro-Vigil’s remote video surveillance (RVM) solution combines cutting-edge cameras, powerful Artificial Intelligence (AI) and a team of virtual security guards that monitor your site day and night.

    AI Deterrence

    These guards stand ready to send audio and visual deterrents that stop 97% of intruders before they ever commit a crime on your property, and deploying the authorities within minutes for the remaining 3% of crimes. 

    What about securing remote areas or temporary holding locations while goods are on the move?

    Our mobile RVM surveillance solution doesn’t require Wi-Fi connectivity, and it uses solar panels so you don’t have to worry about a power source, making it an ideal security solution for trucks, trains, ships or remote warehouse sites. 

    Contact us today to find out how our RVM tools can prevent your precious cargo from falling into the hands of thieves.

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