Safe & Secure: A Driving Vigilance
Terrorist threat makes security a higher priority for fleet operators.
DEBORAH LOCKRIDGE
SENIOR EDITOR
In the weeks and months following the Sept. 11 terrorist attacks, newspapers and wire services were flush with stories that reported how the trucking industry, law enforcement and government officials were getting serious about big rig security, fearing a hijacked truck could be used as a weapon of mass destruction.
Since Sept. 11, "more people are obviously more concerned about security," says Gail Toth, executive director of the New Jersey Motor Truck Assn. and former executive director of the American Trucking Associations' Transportation Loss Prevention and Security Council. "People that practice basic security measures who felt comfortable are now double-checking if it's enough, and it's a real wake-up call for those who never paid it much attention."
But even as worries about truck hijackings made the headlines, cargo theft continued to rise. The good news is, you can help protect your fleet from either danger using many of the same precautions.
CARGO THIEVES ON THE RAMPAGE
Nationwide, it is estimated that anywhere from $3.5 billion to $12 billion in cargo is stolen each year. There aren't any exact numbers, because when a truck or trailer is stolen and reported to a local law enforcement agency, in most cases there is no code that records it as a cargo theft. Making matters worse, some companies are reluctant to "air their dirty laundry" by reporting cargo thefts.
Southern California is widely acknowledged as the biggest hotbed of cargo theft in the country, and officials there do track the crime. In Los Angeles, Orange, Riverside, San Bernardino and Ventura counties alone, about $2 million in cargo is stolen every day, thanks in large part to the huge number of intermodal containers going in and out of the area's ports. There are several task forces in the area devoted to cargo theft, including the Cargo CATS (Cargo Criminal Apprehension Team), formed in 1990 as a multi-jurisdictional effort. Last year, Cargo CATS made 58 arrests and recovered about $18 million in property and equipment. That compares to 51 arrests and a little over $12 million in 2000.
But cargo theft is hardly limited to the land of orange groves, traffic jams and smog. Southern Florida is another hotbed of cargo theft, also due largely to the intermodal ports. Cargo theft experts say what appears to be organized crime is moving northward from there to encompass the entire Southeast. Miami-area officials formed a cargo theft task force modeled after Cargo CATS, called TOMCATS (Tactical Operations Multi-Agency Cargo Anti-Theft Squad.)
Similar task forces are being formed all over the country. Law enforcement authorities believe cargo theft is on the rise, because criminals have discovered that cargo theft carries lesser penalties than other crimes, such as drug dealing. In Florida, for instance, stealing cargo worth more than $50,000 is only a first-degree felony.
The Technology Theft Prevention Foundation estimates that organized crime is involved in as much as 40 percent of stolen cargo. Street gangs are getting into the act, as well, according to the FBI, with Asian street gangs stealing high-tech commodities from Silicon Valley and Southern California, which are then distributed through Asian illegitimate wholesalers. And with the recession putting many people out of work, there are more desperate characters out there willing to steal to support their families — or their drug habits.
While hazardous materials became a concern in the wake of the terrorist attacks, ordinary cargo theft is not nearly so specific. High-tech items such as computers and electronics are, of course, a prime target, as are designer clothing, frozen seafood and guns. But if you think because you don't haul such high-value items you're safe, think again. Small, untraceable items that can be easily sold at small retail outlets are also popular targets, such as toilet paper, razor blades, cigarettes and disposable diapers.
In fact, no load is safe. Cargo thieves have been known to steal such unlikely items as manure, rolls of newsprint, rose bushes, sex toys and caskets.
"They're stealing everything in sight," says Steve Lawson with the Western States Cargo Theft Assn. "I think in 2001 there were more cargo thefts than I've ever seen in my career.
"They'll steal almost anything. If they've got enough time, they can find a market for it, even if it's in Mexico or overseas."
Unfortunately, cargo theft is not a high priority for most police departments and district attorneys. "It's not a sexy crime," Lawson says. "Cases will sit on the DA's desk for months or even years."
That's why it's important to protect yourself and be pro-active in your dealings with law enforcement. The first step is educating yourself and others in your company about cargo theft.
TRENDS & TECHNIQUES
Cargo thieves have many ways of appropriating your customers' loads for themselves, and they are becoming more brazen.
"These guys will go right into a truckstop or a warehouse and find a tractor-trailer, break into it and steal it," says John Albrecht, vice president of Transport Security and a member of the board of directors of the National Cargo Security Council.
In one technique that's becoming more common, the bad guys will case a high-value shipper. When a truck loaded with electronics emerges from the shipper's facilities, the would-be thieves follow him.
"I think thieves have realized that once trailers leave distribution centers, they've got plenty of open space to work in to try to steal it," Albrecht says. "They'll follow that driver 15 or 400 miles." They might wait until the driver stops to use the restroom, get fuel or eat, then grab the rig. Or they might pull up alongside the truck on the highway and have a good-looking woman ask the trucker to pull over.
"A driver will pull out of a terminal, drive a mile and stop for lunch and lose his load," says Alan Spear with MRC Investigations in Wheaton, Ill., a company specializing in investigating cargo theft.
The metered freeway ramps in southern California are another danger zone. Cargo thieves will maneuver their vehicles so that one car is in front of the rig and one behind. The one in front of the truck doesn't move when the light turns green. Armed gunmen then jump from both cars and hijack the rig.
Trucks on the road aren't the only targets. Lawson reports that over the past year, there have been a number of armed robberies at carrier's yards. "On a long weekend when there aren't a lot of people there, they will put everyone on the ground at gunpoint, tie them up, then go through the trailers and containers and take what they want."
Sgt. Jim LeBlanc with Cargo CATS notes the same trend. "We've seen them break into as many as 30, 40 containers to find the load they're looking for, then drive out with whatever they want," he says.
David Forbes, an international security expert, warns of a new cargo theft method that's been seen in the Southeast in the past year.
The perpetrators call up a freight broker and pose as a legitimate carrier looking for loads. They ask about what is available, provide a phone number to call back and a fax number. The phone number is to a cell phone (pre-paid) and the fax number is to a Kinko's or similar location.
Once they have the information on the loads, they accept one, and the broker sends them the shipping documents for pick-up. The perpetrators arrive at the shipper's location with legitimate documents, and leave with the load, never to be seen again.
In general, however, LeBlanc says, most cargo thefts are still perpetrated by opportunists. "If someone sees a rig left unattended somewhere, they'll steal it. They'll get a few miles away before they cut the lock or seal and see if it's worth keeping." These kind of thefts, of course, are the easiest to prevent — don't leave loads unattended. But that's just one part of a comprehensive security plan.
DEVELOP A SECURITY PLAN
For every dollar lost through theft, it takes $10 to $15 in increased revenue to make up for the loss, Albrecht says.
Gail Toth emphasizes that a security plan should consist of layers of security. These layers might include driver background checks, driver ID cards, driver and employee training, security devices for equipment and terminal facilities, fences and armed guards, a relationship with law enforcement, a reward program for information about thefts, and policies that are used and not just stuck in a manual on a dusty shelf.
If this seems daunting, keep in mind that you're not alone. There are many groups out there that can help you in your security efforts.
For one thing, there are trucking associations. The New Jersey association, for instance, is putting together a one-day workshop on security. The Truckload Carriers Assn. has cassette tapes available from its audio conference, "Fighting Back Against Cargo Crime with a Chance of Winning." The American Trucking Associations, while not as involved in cargo crime prevention as it once was, offers help through its Safety & Loss Prevention Management Council.
There are also a number of regional cargo theft organizations that provide valuable communication among carriers, law enforcement and suppliers of security services and devices. (See "Resources" page 56.)
In the past, it has not been unusual for carriers to keep their cargo theft problems to themselves. "Carriers didn't want to advertise that they were being victimized, because they didn't want to lose business," Lawson says. However, it's impossible for law enforcement to recover your lost load or rig if you don't tell them. Cargo CATS, for instance, maintains a board in the office where they list all the cargo thefts reported to them. When law enforcement officials go into a warehouse with a search warrant, they can check the list and find out that ABC Trucking Co. lost a load of Sony DVDs, and possibly match it up against the stolen booty.
It will probably help if you have developed relationships with law enforcement officials before a theft occurs. Many areas have formed cargo theft groups, such as the Mid-South Cargo Security Council based in Memphis, Tenn. Spokesman Bill Pallme is executive vice president at Comtrak Logistics, a 500-unit truckload carrier. He says the group of law enforcement, truck lines, warehouses and security services has been a big help. Trucking companies can bounce ideas off each other and learn from each other's successes and failures. Law enforcement officials get more information about cargo theft and what's being done to prevent it, and companies build a valuable relationship with them.
"About a year ago, we had a trailer stolen over the weekend after a driver had taken it by his house," Pallme says. "The cargo task force recovered the trailer before we even knew it was gone. One of the task force members called me at home on a Sunday. Had I not been part of the cargo security council and had relationships with those task force guys, I'm not sure I would have gotten a call on a weekend."
Pallme's story is unusual in that in most cases, the police can't do anything until you contact them. That's why it's important to report thefts immediately. "Get that first report taken as quickly as you can," Lawson says. "Most of these cargo thieves only keep the equipment in their possession for a matter of hours."
Don't limit reporting to the local police officials. Before cargo theft occurs, make sure you have a list of cargo theft task forces in the areas where you run. When reporting the theft to local officials, ask if they have a cargo theft task force in the area and if they will be notified.
Don't rule out the FBI. The agency in recent years has established a number of cargo theft task forces around the country. During the American Trucking Associations' convention last fall, FBI supervisory special agent William Maddalena told attendees that the agency is "taking a totally different look at cargo theft" since Sept. 11. New procedures are in place so that hot cargo theft tips and data can quickly be shared with FBI field offices and headquarters, he said. Agents have been instructed not to ignore theft reports just because the value of the cargo doesn't meet a predetermined threshold for launching an investigation.
If possible, work with your shippers and receivers to improve security. Many a driver has arrived at his appointed delivery time on a Friday, only to be told to come back Monday. Where can the driver keep that rig over the weekend so it won't be a target for thieves or hijackers?
Along the same lines, pay attention to your scheduling. "We see companies giving drivers valuable loads where they're obviously going to have downtime before their scheduled delivery" says Lawson. "That driver's going to take the truck and trailer, park near their house, and get it stolen.
"Don't leave the decision up to the driver as to where he's going to park that load." If you don't have a secure terminal nearby, make arrangement with your customers where drivers can park tractors and trailers on secure areas and avoid leaving them on the street, he says.
After Sept. 11, California-based industrial gas hauler Logex had meetings with terminals and drivers about the importance of securing hazardous materials loads. "If a driver is on a run where he needs to make a layover, we need to find one of our customers, or even a competitor, where we can park it in a secure facility rather than leaving it in a motel or something like that," says Vice President Tom Rule.
START WITH PEOPLE
While the first thing that comes to mind when you think security may be locks or a burglar alarm, one of the key factors to preventing theft is your people.
All employees should be subject to thorough background checks when they are hired. "We give million-dollar loads to people we know little or nothing about," says Steve Lawson. It's important not to take the application at face value. Check out professional and personal references. Call previous employers. Be suspicious of any blanks on the application or gaps in work history.
Because trucking companies don't have access to the federal criminal database, criminal background searches are laborious and usually must be limited to the counties where the driver has lived. (The trucking industry is lobbying the federal government for access to the database, and the effort may have more chance of success in the wake of Sept. 11.) But that doesn't mean you shouldn't try. There are services available where you can outsource background checks, although carriers have varying opinions as to their effectiveness.
One thing you can and should do, Toth says, is a credit check. "Do they have a credit problem where they might want to steal to take care of a habit or bad debt?" she says.
In addition to background checks, at the request of shippers, since Sept. 11, many companies are now issuing photo ID cards or badges for their drivers. KLLM Transport Services of Richland, Miss., is just one of the many companies to take this step. When a driver passes through one of the company's terminals, the safety department takes their picture using a digital camera. The photo is uploaded to a personal computer, where it is combined with the driver's name, employee number, hire date, employee classification, and the ID card's expiration data. This becomes the front side of the card. The reverse side contains the driver's hazardous material training certification. A wallet card, as well as a clip-on badge, are laminated and given to the driver on the spot. New drivers get their cards during the orientation process.
Security in your workforce goes beyond background checks and IDs. Especially in the current environment, drivers and other employees need to be on a heightened state of alert. Make sure your employees know that if they see someone hovering around the terminal who looks like they don't belong there, they should tell someone — and who to tell, whether it's a superior or a call directly to the local police. "We should act on our hunches," says Toth, "instead of regretting it later."
While it's important to tell drivers not to talk about their loads, Spear says, "loose lips sink ships" applies to other personnel, as well. "Many trucking companies are not careful with information," he says, "so 20 people know there's a load of computers going out the door when it only needs to be three. Documents are left on people's desks, computer systems don't have firewalls" to prevent outside hackers from gaining access to information.
Drivers, especially, because they are essentially in charge of rolling warehouses, should be trained about what to do to prevent theft or hijacking — and what to do if it happens.
"Establish a good company policy regarding security," Albrecht says. "I think one of the biggest problems is companies that don't take the time to educate their drivers on security and prevention. They need to know what the company expects of them." Company policies should prohibit or discourage unsafe practices such as talking about the load or the destination, dropping the trailer in an unsecured area, leaving the truck unlocked and/or running, and parking in unsafe areas. Make sure drivers know if they're supposed to use a lock, and how it is supposed to be used.
"Constantly be talking to drivers, letting them know that they're potential targets," Lawson says. "Most of the drivers tell me, 'I never thought it would happen to me.'"
LOCKS, CAMERAS, ALARMS
No security device is tamper-proof. Professional thieves seem to figure out how to defeat the latest devices almost as soon as they come out. Spear says he recently investigated one case where the truck was equipped with both a steering column lock and an air valve lock, but the truck got stolen anyway.
But the more you slow down cargo thieves, the more likely they are to move on to easier prey. "If all you've got on the back of the truck is a little aluminum seal you can tear off with your bare hands, that's a lot faster than getting through a heavy-duty lock," Spear says. Use security devices to protect both your trucks on the road and the ones in your yard, as layers in your overall security plan.
Traditional locks and seals should be used to secure trailer doors. There are locks and hasps designed specifically for trailer doors that thwart efforts to use bolt-cutters or hacksaws on locks. High-tech seals feature electronics or random number generators. King pin locks help protect trailers from theft when they're dropped at terminals or retail stores.
There are many anti-theft devices on the market. One makes a tire go flat if the thief tries to move the truck. Others lock the brakes so a truck cannot be moved. One shuts down the engine a couple of minutes after the driver leaves the seat. There are alarm systems, similar to home burglar alarms, that go off if someone breaks into the cab.
More sophisticated systems designed for fleets provide central station monitoring, with shutdown systems that can be activated if a truck or trailer has been stolen or hijacked.
Satellite tracking has spurred a lot of interest in the wake of Sept. 11. However, cargo security experts note that a savvy thief will cut the wires leading to a satellite receiver immediately after gaining control of the truck. If you're interested in using satellite tracking for security, you'll need to look into special stealth and tamper-resistant installation options. There are also GPS tracking devices that are developed specifically for use as tools against cargo theft.
Don't neglect your terminal facilities. For the yard, there are a wide variety of security cameras available. Some advertise that they work in bright light or the dimness of night; others that they let users view live video of their facilities on the Internet. Fencing and burglar alarm systems should be installed and kept up-to-date. Security guards should be on duty.
While there are plenty of high-tech devices to choose from, they don't all have to be high-tech. Basic old-fashioned fences, gates, guard shacks and lighting are important. Comtrak Logistics in Memphis, for instance, installed a 6-foot-high guard rail which, when trailers are backed up tightly against it, helps deter anyone from breaking into the trailer.
Again, security devices aren't foolproof, but they can slow thieves down. Spear has one customer who has fences, gates, guards, lights and security cameras, but five guys cut through the back fence, overpowered an armed guard and made off with some valuable cargo. "Any system can be beaten," Spear says, "But the chance of that yard being hit versus one down the street is considerably less."
"The industry is under attack by a very sophisticated network of criminals, linked to the drug trade and other international crime, including terrorism," says Spear. "The trucking industry has a hard enough time moving cargo and trying to make a little money, without worrying about this."
Nevertheless, it's a topic that's vital to worry about Ð or at least be as prepared as you can be. With luck, these added security measures will keep a hijacked truck out of the headlines Ð and organized crime can go back to smuggling drugs instead of stealing diapers.
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