Chapter 16

Transportation/Cargo Security

Goal: To provide students with information on the elements of cargo security.

Objectives:  

• Explain accountability procedures applicable to cargo security
• Discuss cargo theft, the targets of such thefts, and preventive measures .
• Discuss "cargo in transit" and the problem of hijacking.

Lecture:

Years ago I was involved in developing a class for a military school.  The subject was "Cargo Security."  I remember that at the time there had just been a congressional study of the subject.  I remember reading of one case in which a Mafia gang stole something like 27 rail cars.  Not just the contents of the cars.  The entire cars!!  I also remember listening to my Irish grandfather who was a stevedore on the New Jersey docks back in the 1920's.  He told me how the stevedores would steal about half the load that they were unloading.  One story was funny: they were unloading a cargo of figs.  They set aside quite a few for themselves to eat but they ate so many that they all got the runs.  Well, it was funny when I was a kid listening to him.  But is it really funny?  Someone paid for those figs to be delivered somewhere.  If they ordered 200 pounds and ended up with 100 pounds, someone lost out.  And someone had to pay for them, including the missing ones.

I recently conducted a security survey of over 2000 miles of a  railroad route.  Rail yards are full of box cars with TVs, computers, car parts - all types of consumer goods.  There are intermodal yards where truck trailers are placed on rail flatcars.  I spoke with railroad police officers who say they can't keep up with thieves, although they do thwart some attempts. They are understaffed, often working alone at night in very large rail yards.  You and I are paying for the losses that happen in those yards. 

The indirect costs resulting from claims processing, capital tied up in claims and litigation, and market losses due to both non-delivery and underground competition from stolen goods, are estimated at between $2 to $7 for every $1 of direct loss– a $26.6 to $93.1 billion  annual loss in national economy. These figures frame the problem for us: cargo security is a critical activity for business. It is here that we again see the importance of accountability procedures and the separation of functions. Control of cargo theft is primarily the responsibility of the private concerns involved, not federal agencies. Companies can take measures to reduce cargo theft by implementing a few simple procedural controls. These include not allowing drivers to load their own trucks , having guards at vehicle exits and entrances, provide patrol of yards as well as the perimeter, implementing an effective key control system, and providing security storage for high risk cargo. Areas of collusive theft particularly vulnerable to cargo include deals being made between drivers and vendors, and invoices not properly numbered or signed. While hijacking becomes a concern under federal law, it accounts for only 1% of losses suffered by the shipping industry. Compare that with the fact that in 1990 direct losses from cargo theft amounted to $14 billion. Again we see that the greatest dangers are internal.

On page 298 there is a discussion of the "three C's of cargo theft": confusion; conspiracy; and common denominator.  What is the common denominator?

So, what are some things the security manager can do?  By now, you know that we have a "bag of tricks": things that deter, detect, assess, delay, and respond to the threat.  And we know about the security assessment or survey.  Here are some countermeasures that should be considered:

Accountability - make sure there are procedures in place to let people know who is responsible for what.  Make sure there are good records, signatures, accurate description and weights of materials in and materials out.  Know names of drivers, companies and maintain access lists and logs.  Check IDs.  Make sure cargo manifests are accurate.

Control movement- make sure there are controls in place on people and vehicles in the areas where cargo is stored and handled.

Parking control - this is one area where you need to make sure private vehicles are not parked.  They must be kept outside of the cargo storage and handling areas.

Searches- have random personnel and vehicle searches searches at gates. 

Reporting and investigating- make sure losses are reported and investigated.

Personnel controls - hire good people, conduct background checks, rotate jobs.  Rotation is done to keep employees from working in one place so long that they figure out how to beat the system.

Some other considerations:

Use fences, lighting, walls, and other "outer defenses."

Separate receiving and shipping docks.  It is important to keep these functions separate.

Consider use of CCTV and alarms, especially for high value cargo.

Make sure lock and key controls are adequate.  Use numbered seals in addition to locks on truck and railcars and keep records of all seal transactions.

Have a good security education program for employees.

For trucks, take advantage of satellite tracking systems.

Trucks in transit should be parked overnight in well-lighted areas.

A relatively recent (since 9-11) concern for our transportation system has been the threat of terrorism.  While a considerable amount of attention and money has been paid to the airline system, security for buses, trains, and ships is another matter.  Look what just happened in Madrid, Spain. The commuter train situation, especially in large, high population areas such as the northeast corridor (trains running between D.C. and New York, for example) is very hard to control.  Have you ever ridden a commuter train?  People get on and off in crowds, many carrying packages.  I know that Homeland Security as well as AMTRAK and others are looking into potential solutions.  The problems will be cost and inconvenience for all involved.  These are indeed interesting times!

No assignment this week!