Cargo theft a concern

John Dillinger famously remarked that he robbed banks because that was where the money was. Today, thieves know they can make a similar score without having to set foot in a bank. The advent of containerization has put everything a thief could want in a nice, square package.

The enormity of the problem is hard to overstate. Some estimates put losses due to cargo theft at $10 billion annually.

What's more, cargo theft is as insidious as it is ubiquitous. Law enforcement officials and security experts say a majority of theft is internal, either the work of or the result of information provided by insiders. The fact that usually only high-value cargo is stolen indicates that the thieves have knowledge of a container's contents.

In addition to theft, shippers and carriers also have to worry about keeping things out of containers. Many unscrupulous consolidators will piggyback an additional load into a container a shipper paid for. Narcotic traffickers will often make an unwanted addition to a container while it is dockside. Stowaways also find containers a useful conveyance to the United States.

Intermodal cargo, with its multiple hand-offs, is particularly vulnerable to theft and tampering. When a theft does occur, carriers, consolidators and shippers can exchange recrimination like a circular firing squad.

The worst thing about cargo theft is that it is quite easy. For example, a trucker tempted by the knowledge that he is hauling highly valuable and easily fenced cargo, may dip into his container during a dray. Others may lose an entire containerized load to hijackers who are in fact accomplices.

To be sure, many innocent transportation professionals fall victim to crime. A trucker stopping to fuel up or grab a bite to eat may lose his load, and his livelihood. This problem is acute near border crossings, such as Laredo, where trucks are stolen and spirited across the border.

Law enforcement officials have also noticed that a more sophisticated breed of criminals have started stealing cargo. In South Florida, police note that many criminals formerly in the drug trade have switched to cargo theft because the financial rewards are so large and the penalties, especially in comparison to narcotics, are slight.

All in all, a host of bad things can happen to your container. Thus, the problem for the industry is to create a system to ensure the sanctity of containers and create responsibility across the supply chain. There is no dearth of products, policies and companies attempting to fill this void.

The problem with many of these solutions is that they are as complex as they are costly, said Ray Fernandez, vice president of Sealock Security Systems, Inc.

Sealock Security Systems sells a unique security system designed to thwart cargo theft at a reasonable cost. The system, called the Sealock, is a combination seal and lock, hence the name. Fernandez said that much of the product's beauty lies in its simplicity.

"You don't need to be a brain surgeon to install it. You don't need any sort of massive installation process," he said.

The Sealock consists of an aluminum bar that crosses over a container's doors and is tethered to a cable seal. Any attempt to remove or tamper will inevitably show on the other. Even if the cable is cut, you still have to contend with the aluminum bar. This will require use of a torch. Sealock Security Systems chose aluminum for the locking bar because, unlike steel, it will automatically betray any attempts that have been made to cut it. Just as you could never straighten out a piece of aluminum foil that has been crumpled, a would-be crook, no matter how skilled, could not cover up his assault on this bar.

"It is highly indicative, should it be compromised," Fernandez said. "We have already addressed the covert theft issue."

In addition to serving as an indicator, the lock is also a deterrent. Thieves looking to enter a container will likely move on to an easier mark. To encourage widespread use of the product, Sealock Security Systems is marketing it to places where trailers need protection, such as truckstops.

In its seven months on the market, Sealock has garnered some acclaim. Among them are the chief of supply chain security at Hewlett Packard and insurers, such as Air & Sea Insurance Corporation, which gives a ten percent premium discount to clients that employ the lock on shipments. The Los Alamos Vulnerability Assessment Team, which delights in finding faults in the tags and tamper-indicating seals it tests, found the Sealock "offers important and practical improvements in cargo security."

These kind words haven't gone to Fernandez's head. He concedes that somebody bent on theft will usually succeed.

"Anybody that wants to gain access to a container will usually do so," he said. "It's a matter of how difficult you make it for them and what kind of deterrent you create."

 Reprinted from: Florida Shipper, September 7, 1998