File

March 2015
vigilant
THE MONTHLY CARGO CRIME UPDATE FOR MEMBERS OF TAPA EMEA
LOST
COST
Pharma experts
identify the true cost
of product loss
Page 3: 2014 cargo crime
analysis infographic
Page 4: Electronics the top
target as U.S. losses
total $90m
Pages 5-8: Uncovering the
true cost of loss
Pages 10 -12: IIS freight
theft data for February 2015
Pages 15-16: World crime
– 6 years in jail and $60m
payback
Page 17: Cargo crime
analysis for Spain
TRANSPORTED ASSET PROTECTION ASSOCIATION
welcome
2
CHAIRMAN’S VIEW
AN ACCOMPLISHED TEAM TO
TAKE TAPA FORWARD
We already have a clear strategic plan for the
next three years and this covers:
1)Growing our FSR and TSR self-certification
programme, aiming to increase certifications
by 500 by 2018
2)Defining additional training delivery
modules required for the next 3-5 years
3)Launching an enhanced EMEA IIS tool to
encourage incident reporting and provide
additional features to members
4)Defining and publishing the Roles and
Responsibilities of the Board, its Officers and
the Association’s Activity Leads
5)Producing an EMEA overview of the loss of
profit impact cargo crime has on the supply
of goods to the end customer
We were delighted to welcome over 270 TAPA EMEA
members to Madrid this month for our first main
conference of the year and I am pleased to say we have
received excellent feedback on the event, the diversity
of the conference agenda and the outstanding
speakers that supported us.
These events act as a reminder of how far
we have come as an Association but they
also remind us of why TAPA is so important
and the increasing level of risk facing global
supply chains. As we know, there is no
finishing line in the fight against organised
criminals that are targeting high value, theft
attractive products. The best we can do is to
stay one step ahead.
In the last issue of Vigilant, we announced the
outcome of our Board election and since then
the Board has met and agreed our respective
roles for the new three-year term of office. I am
extremely proud to be continuing as Chairman
of TAPA EMEA and to be working alongside
so many supply chain security experts on the
Board. The growth of TAPA, the continuous
improvements to our Security Standards, the
intelligence we provide, and the training we
deliver are all driven by the volunteers on our
Board and I know this will continue. Despite
all having highly responsible and demanding
day jobs, every member of the TAPA EMEA
Board is committed to continuing to make
our great Association stronger and to helping
our members make their supply chains more
resilient.
I am delighted that Steve Mchugh has started
a new term as Vice Chair and Standards Lead
along with George Wiessing as Treasurer.
The responsibilities of the rest of the Board
are as follows:
•
•
•
•
•
•
•
Luc Van Herck – Standards, TSR
Mark Gruentjes – Standards, FSR/TACSS
Marcel Saarloos – IIS & Membership
Michael Wortmann – IIS & Membership
Paul Linders – Standards
Jason Breakwell – PR & Conferences
Markus Prinz - Standards, Training
I am also delighted to welcome Werner
Cooreman of DHL Express to the team. Werner
has been co-opted onto the Board and will
bring particular expertise in regulatory affairs
and airfreight.
6)Developing a secure parking strategy, initially
forming a working group with ESPORG
7)Supporting the further global alignment of
the TAPA regions
This all requires a great deal of time and hard
work and I want to take this opportunity to
thank our Board members for wanting to make
the time to help deliver such a full agenda
over the next three years. Of course we will be
looking for support from our members too to
draw on specific areas of expertise.
That support will, I hope, include sharing
incident information with IIS, including any
media reports you see relating to cargo crime.
Our SEE IT, SEND IT campaign highlights how
easy it is to support IIS and I hope you will think
of IIS the next time you read about a cargo
crime in your national, local or industry media.
Data is one of the most powerful tools at our
disposal to highlight the threat cargo crime
poses to individuals, companies and national
economies. The more incident intelligence we
collect, the stronger our voice becomes.
Thorsten Neumann
Chairman
3
CRIME DATA
1,102 35
Transported Asset Protection Association
2014 CARGO
CRIME DATA
Incidents in the Europe, Middle East &
Africa (EMEA) region reported to TAPA’s
Incident Information Service (IIS)
Incidents of cargo crime recorded by IIS in
2014 in the EMEA region
157
€32,471,000
The value of the top 10 crimes recorded by IIS in the year
Fraudulent
pick-ups were
recorded in
2014, a 29% rise
over 2013
45% 67%
501 or 45% of
crimes involved
Theft from Vehicle
Of crimes recorded
by IIS gave no
loss value
Crimes were classified as Major incidents
with loss values in excess of €100,000,
a fall of 4.8% year-on-year
Thefts from
Moving Vehicles
were reported to
IIS last year
364
recorded incidents gave a loss
value, representing 33% of all
crime data captured by IIS
14.2%
-12.5%
Average losses
Of all crimes were
Major incidents
-9.7%
fell in 2014 vs. 2013
102
7
Hijacking
incidents in 2014,
9% of the annual
total and +5% yoy
GERMANY
Recorded the highest number of incidents in IIS with 285
cargo thefts in 2014, a rise of 42.5%
€74,847,422
The total value of losses recorded
by IIS in 2014, based on
crimes giving a loss value
98.8%
€205,624
The average loss
for incidents
giving a loss value
Most stolen items: food & beverage,
clothing & footwear, cosmetics & hygiene
products, computer equipment, audio
visual and electronic equipment, car parts,
pharmaceuticals, tools and tobacco
The UK reported the biggest % increase
in incidents year-on-year with 175 cargo
crimes compared to 88 in 2013
The Netherlands, the top country
for reported cargo crimes in 2013
saw its figures fall 9.7% to 258 incidents
€67,900
The equivalent value of every crime
recorded by IIS in 2014
3.7% €17m
Fewer
reported
incidents vs.
2013
Biggest single recorded loss in
2014 – shipment of scratchcards
and electronics in Anagni, Italy.
Later recovered by police.
4
AMERICAS DATA
CARGO LOSSES CLOSE TO
$90 MILLION IN 2014,
WITH ELECTRONICS THE
MAIN TARGET
Texas considers new
cargo crime law
A new bill proposed in Texas seeking to
create a law specifically addressing the
crime of cargo theft heard testimonials on
March 18 as the bill moves forward in the
State Legislature. The bill would establish
cargo theft as a specific offence and tie
fines and punishments to the value of the
thefts, according to media reports.
Two annual reports on cargo theft in North
America for 2014 show a slight reduction in
the number of incidents but a continuing
high level of average losses.
The FreightWatch report shows that while the
number of verified and reported instances
of cargo theft in the U.S. declined in 2014,
the average loss value per incident increased
markedly, a trend that has been ongoing since
2012. The number of incidents fell 12% during
the year, the report states, but the average
loss value per incident rose 36% with attacks
on electronics driving the increase.
At least 47% of thefts targeted electronics,
including $15 million worth of computer
processors stolen in a single burglary from a
facility in Doral, Florida. High value electronics
theft incidents tripled from 2013 to 2014, with the
category seeing a 43% surge in the total average
loss value of all electronics thefts to $568,664.
The report also notes that certain types of
products have “very strong state-specific trends”
including automobiles and auto parts in Texas,
where nearly one-quarter of all such verified
product thefts occurred. Texas also accounted for
28% of all building and industrial materials thefts.
According to the FreightWatch report, 90%
of thefts in 2014 involved stationary and
unattended trucks. 87% of thefts with a known
location were stolen from unsecured parking
areas like truck stops, public parking and
roadsides. Thefts from secured parking locations
fell from 11% to 2%.
Florida took over the top spot for all cargo thefts,
narrowly edging out California, which saw a
High-value electronics theft incidents
tripled from 2013 to 2014, with the
category seeing a 43% surge in
the total average loss value of all
electronics thefts to $568,664.
migration of cargo theft activity out of southern
California and into northern California and the
Pacific Northwest. Texas, Georgia and New Jersey
rounded out the Top 5 states for verified cargo
theft incidents.
CargoNet’s annual report said just shy of $90
million of cargo was stolen in 2014 in truck-trailer
cargo theft incidents. It said nearly half of the
total involved high value electronics loads, which
averaged $549,539 in stolen goods per theft
incident and totalled $42 million for the year.
The total number of incidents in the year fell to
844, CargoNet reports, down from 2013’s 1,098
recorded crimes. The average loss value jumped
from $143,957 in 2013 to $181,681 in 2014.
5
COST OF LOSS
LOST
COST
Why the value of stolen cargo only tells part of the
story when it comes to the true cost of cargo crime
Retail value of the stolen
product is only part of
the story – and here’s
where the indirect costs
come in. For example,
Chubb reported that
“for every $1 of direct
cost recovered from
insurance, as much
as $4 is lost to nonreimbursable indirect
costs related to lost sales,
replacement shipments,
customer dissatisfaction
and implementation of
theft deterrence.”
6
COST OF LOSS
Pharmaceutical cargo thefts:
uncovering the true cost
Make no mistake about it –pharmaceuticals are one of the most
valuable types of cargo stolen. But interestingly enough, when
one looks at statistical cargo theft reports, one may not think
it’s a big issue.
After all, the reported theft of
pharmaceutical products is typically only
1-4% of thefts in all product categories
according to data from the FreightWatch
International Supply Chain Intelligence
Center (FWI SCIC).
Of course, across all global industries,
any statistics on cargo theft are usually
accompanied by a notation highlighting the
significant underreporting of stolen goods. The
reasons for this underreporting are many, and
may vary from country to country, and from
industry to industry, but one thing is certain –
underreporting is an undeniable truth in the
pharmaceutical industry.
More thefts than one might think
A recent study conducted by the University of
Texas College of Pharmacy polled professionals
in pharmaceutical distribution companies
and shows that there may indeed be a higher
rate of theft than reported in this industry.
The respondents included experts in the
distribution of pharmaceutical products,
risk management, logistical experts, freight
insurance carrier experts or investigators of
pharmaceutical thefts and diversion activities.
-Another reported over 175-225 thefts (35-45
per year) internationally valued at less than
$100,000.
Over half (51.9%) of these professionals
reported that their company experienced a
major U.S. cargo theft resulting in a loss of
$100,000 or more within the last five years.
This research also uncovered these findings
for the same timeframe:
Based on the study’s sampling, it would be
reasonable to conclude that there are actually
more thefts than reported. However, there
is another important factor that should be
considered: the indirect costs of pharmaceutical
thefts have serious consequences that are not
found in other industries.
-The median number of thefts was three, with
over 75% of respondents reporting more
than one major pharmaceutical theft.
The behind-the-scene
costs of thefts
-On average, each respondent had 5.64 total
losses, or 1.13 losses per year.
-Three respondents had an estimate of 20
thefts, or four per year.
-One respondent reported 80-100 thefts
(16-20 per year) valued at $100,000-$250,000
outside the United States.
When thefts are documented, the value
reported is typically an assessment in terms of
lost sales to the company at the retail market
price. These numbers can be substantial. In fact,
it is not uncommon to see documented thefts
in the pharmaceutical industry valued in excess
of $10 million.
But retail value of the stolen product is only
part of the story – and here’s where the indirect
CONTINUED ON PAGE 7
>
7
COST OF LOSS
PHARMACEUTICAL CARGO THEFTS: UNCOVERING THE TRUE COST: Continued from page 6
disruptions in current production,
employee overtime, and added
packaging, handling and transportation
costs.
•
Loss of sales: The costs here, which affect
the manufacturer, the wholesalers, and
pharmacies, are dependent on whether
or not the company can replace the
stolen product quickly. And of course,
if potential customers buy the product
instead from a competitor, the sales loss
may be permanent.
While many firms have their own investigators, the expenditure here can add
up quickly. In addition, enhanced security for future cargo shipments is often
required, with the need for more security monitors covertly tracking the load,
as well as additional security people or drivers. In some cases, the mode
of shipping might need to be altered to something more secure, such as a
change from ground transportation to airfreight.
Each theft of pharmaceuticals is unique,
with many variables, but here are a few of
the common indirect costs highlighted in
the recent study that occur as a result of a
theft:
• I nvestigational costs and added
security: While many firms have their
own investigators, the expenditure here
can add up quickly. In addition, enhanced
security for future cargo shipments is
often required, with the need for more
security monitors covertly tracking the
load, as well as additional security people
or drivers. In some cases, the mode of
shipping might need to be altered to
something more secure, such as a change
from ground transportation to airfreight.
•
Recovered product testing, destruction,
and recalls: When drug products are
recovered, companies have the option
to destroy them immediately, or they
can inspect and test the products, and
then destroy any compromised product.
However, if the stolen products re-enter
the drug distribution system, companies
are often required to recall the products
of the same lot number. Any of these
scenarios are costly, but the expenses
associated with a recall could reach
millions of dollars, depending on the
quantities and geographic conditions.
•
Replacement product and
transportation: If more product is
available, the cost of replacing it is mainly
in transportation. This nonetheless
can be a substantial cost, especially for
emergency situations, and in situations
where a new delivery route or added
security is required, e.g., changing
to air or rail freight from land freight.
If new product is needed, then the
replenishment costs, which include
everything from purchasing ingredients,
to manufacturing, may add up quickly.
Companies may also experience
costs come in. For example, Chubb reported
that “for every $1 of direct cost recovered
from insurance, as much as $4 is lost to
non-reimbursable indirect costs related to
lost sales, replacement shipments, customer
dissatisfaction and implementation of theft
deterrence.”
• C
ommunication with affected parties:
For most manufacturers, any kind of
theft would require communication
with FDA in a formal announcement, as
well as announcements to healthcare
practitioners and patients. Needless
to say, after a large theft of valuable
pharmaceuticals, a manufacturer’s
public relations team would be working
around the clock to assure all parties are
properly informed, and the bill could be
substantial.
•
Insurance costs: In addition to potential
increased insurance premiums or the
loss of insurance coverage, insurance
companies may require new mitigation
strategies, such as added security or new
modes of transportation mentioned
already. Yet the costs to enhance
security protocols, train and add new
security people, implement new security
equipment, or add new transportation
contractors can add up quickly.
Beyond these major categories, the list goes
on. For instance, if there are shortages of
product in the market, there could be health
care and patient care threats, hardships
and costs. There may be patient harm if
the stolen product is not stored or handled
properly before being diverted back into the
marketplace, a concern especially for cold
chain products. The results of both shortages
and compromised product can cause added
costs or even death for patients.
And of course, there are other losses that are
harder to quantify, such as loss of company
reputation or stockholder confidence.
The potential costs add up!
To gain a greater insight into the real value
of a theft, the study used a hypothetical
scenario outlining a theft of product valued
at $200,000 to establish a measure of the
associated indirect costs.
CONTINUED ON PAGE 8
>
8
COST OF LOSS
PHARMACEUTICAL CARGO THEFTS: UNCOVERING THE TRUE COST: Continued from page 7
ABOUT THE STUDY'S AUTHOR:
Marv Shepherd, Ph.D.,
Professor and Director
of the Center for
Pharmacoeconomic
Studies, College of
Pharmacy, University of
Texas at Austin, Texas.
The fictitious case scenario used the
following criteria. The theft was of a tractor
and trailer in a major city, where five
different prescription oral products that
needed a controlled room temperature were
stolen. The trailer was found two days later
in a near-by city, empty and with different
license plates. Six months later, one of
the products appeared in a chain grocery
store, with similar distribution to additional
pharmacies in the chain. The products were
traced to a distributor and a secondary
wholesaler and then recalled.
potential loss adds up to $766,000 – without
any added costs for the recall process.
A recall could add in another $500,000
conservatively, for a total of $1.3 million in
losses, or over five times the value of the
stolen product.
True Potential Value
He has conducted research on drug
importation, drug counterfeiting and
drug diversion for close to 20 years.
His research has been featured on
CNN News, NPR Radio, Newsweek,
Wall Street Journal, Money Magazine,
Time Magazine, US News and World
Report, New York Times, USAToday,
Washington Post, plus many others.
He has testified before U.S. Congress
on drug importation, prescription
drug diversion and counterfeit drugs.
Based on this scenario, the participants in
the study were asked to estimate the indirect
costs. Here is the median value of their
responses.
Factor
Employed
Cost Value
(Median)
Replacement Product Costs
$200,000
Loss of Sales
$200,000
Public Relations Costs
$50,000
Investigational Costs
$20,000
Drug Inspection and Testing
$20,000
Product Disposal
$20,000
Communication with Providers
$20,000
Added Security Costs
$10,000
Outreach to Client Costs
$10,000
Quarantine Costs
$10,000
Added Transportation Costs
$6,000
Increase in Insurance Cost
Unknown
Recall Process Costs
Unknown
Estimated Total Cost
$566,000
With an estimated value of over half a
million, this places these indirect costs
in excess of three times the value of the
product itself. When the cost of the lost
product is added in, the true cost of this
Dr. Shepherd earned
B.S. in biology
from Michigan
Technological
University, a B.S. in
pharmacy from Ferris
State University, M.S.
from the University of Rhode Island
and Ph.D. from Purdue University
(1980). In the late 60’s he received
his commission in the U.S. Army and
served with the 10th Special Forces
Group (Green Berets).
a
Product Value
Other Costs
Recall Costs
The true costs are daunting
Will we ever know the actual number of
pharmaceutical thefts – and their associated
costs - around the world? Probably not.
These findings begin to show just how
costly factors such as product recalls, added
investigation, product destruction, and
other related expenses can be. Sadly, they
could add up to three times the cost of the
stolen product, and even more when recalls
are involved. And that’s with conservative
numbers.
The indirect cost factors here are critical
in the evaluation of the supply chain and
must be considered when planning for risk
mitigation.
Dr. Shepherd is currently the President
of the Partnership for Safe Medicines,
an organisation dedicated to fighting
counterfeit medications. In 2010, he
was appointed to the Drug Packaging
and Distribution Committee of the
United States Pharmacopeia.
Center for Pharmacoeconomic Studies,
College of Pharmacy, University of Texas,
“An Examination of “Other Cost Factors”
Associated with Major Pharmaceutical
Cargo Thefts”, Marv Shepherd Ph.D.
Study funded by Sensitech Inc. and its
Logistics Security Division FreightWatch
International.
Chubb, “Mitigating Transit Theft”,
http://www.chubb.com/businesses/cci/
chubb1100.pdf
9
FSR AND TSR SECURITY STANDARDS
able to conduct an audit for their own company,
a person has to complete a relevant TAPA
training course and, at the end of this, pass the
self-certification examination. Without this, they
cannot be deemed to be a competent person to
do the audit,” Steve Mchugh added.
In relation to the TAPA Air Cargo Security
Standards (TACSS), he told delegates these are
likely to be brought under TAPA’s Facility Security
Requirements (FSR), stating that the next revision
of FSR is expected to include an addendum to
cover air cargo.
SECURITY STANDARDS
Can you help develop
a new Standard?
Stronger focus on certification as TAPA looks
to realise ‘immense potential for growth ‘of
FSR and TSR Security Standards
TAPA Security Standards are the backbone of
the Association and members can expect to see
a strong focus on certification during the new
Board’s term of office.
of March will encourage a whole new wave of
interest from companies to adopt TAPA Standards
at all levels. The FSR C and TSR 3 entry levels will
also make it easier for companies achieving these
levels to step up to higher certification in the
future.
“There are currently 500+ TAPA
certified facilities in EMEA. The
potential for growth is immense,”
Steve Mchugh, Vice Chair and
Standards Lead told this month’s Madrid
conference.
Chairman Thorsten Neumann is also calling on
insurers to get behind the drive for more certified
facilities and trucking operations by offering a
reduction on insurance premiums for companies
that reduce losses as a result of implementing
TAPA Standards. Vigilant will be speaking to
insurers for their response and publishing their
comments in the next issue.
TAPA hopes the launch of the new FSR C and
TSR 3 self-certification programmes at the start
One of the questions concerning self-certification
is who in an organisation can do the audit. “To be
Register online
now for 2015 FSR
and TSR training
Members who wish to participate in one
of the TAPA FSR or TSR training sessions
taking place across the region in 2015
are strongly advised to register for their
preferred location as soon as possible.
Places at these events are limited and are
offered on a first come, first served basis.
You can register online at www.tapaemea.
com for any of the courses listed. Once you
have registered for a training session, do
not book your flight or accommodation
until you have received an information
email from us.
If for any reason you cannot attend the
training you have registered for, it is
important that you notify the TAPA EMEA
Admin team as soon as possible so your
place can be offered to someone else.
Speaking at the Madrid
conference, Luc Van Herck,
TAPA EMEA Director and TSR
Lead, said the current Trucking
Security Requirements could form the
basis of a new multi-modal security
standard to protect cargoes moving by
Train and Shortsea.
Luc has asked anyone interested in
participating in a group to look into a
possible new Security Standard to register
their interest with the Standards group.
For all enquiries concerning TAPA
Security Standards, contact
[email protected]
FSR TRAINING
COUNTRY
Sweden
UK
Austria
Netherlands
South Africa
Germany
Italy
France
Hungary
DATE
15 & 16 April
15 & 16 April
22 & 23 April
20 & 21 May
13 & 14 July
19th & 20th August
19th & 20th October
21 & 22 October
18th & 19th November
Greece
UK
Luxembourg
South Africa
Germany
Netherlands
Italy
Hungary
Netherlands
17 & 18 June
17 & 18 June
15 & 16 July
15 & 16 July
16 & 17 September
14 & 15 October
3rd & 4th November
16th & 17th November
9 & 10 December
LOCATION
Jönköping
London
Vienna
Amsterdam
Johannesburg
Ulm
Florence
Villepinte
Budapest
LANGUAGE
Swedish
English
English
English
English
English
Italian
English
English
TSR TRAINING
Athens
London
Wasserbillig
Johannesburg
Burbach
Etten Leur
Milan
Budapest
Amsterdam
English
English
German
English
English
English
Italian
English
English
10
DATA FOR FEBRUARY 2015
CARGO CRIME MONITOR
€87,806
CARGO
THEFT BY
COUNTRY
AVERAGE LOSS
VALUE LAST MONTH
FEBRUARY 2015
1
1
RUSSIA
32
DENMARK
19
UNITED
KINGDOM
NETHERLANDS
72
NEW CARGO THEFT
INCIDENTS RECORDED
DURING THIS MONTH
4
€355,000
GERMANY
BIGGEST INCIDENT:
CLOTHING & FOOTWEAR
FOLLOWING A THEFT
OF VEHICLE IN LÜBECK
REGION OF GERMANY
2
SOUTH AFRICA
9
4
9
ITALY
SPAIN
CRIMES CLASSIFIED AS
‘MAJOR’ INCIDENTS
WITH LOSSES IN
EXCESS OF €100,000
Number of incidents in month
CARGO THEFT
BY PRODUCT
FEBRUARY 2015
1
COSMETICS & HYGIENE
1
FOOD & BEVERAGE
8
CLOTHING & FOOTWEAR
1
1
TOBACCO
SPORTS EQUIPMENT
5
PHARMACEUTICALS
1
PAPER PRODUCTS
3
CONSUMER ELECTRONICS
1
TOOLS & BUILDING MATERIALS
2
TYRES & CAR PARTS
48
UNSPECIFIED
11
IIS NEWS
Clothing & Footwear losses dominate February incidents
Clothing and Footwear
was the prime target for
cargo thieves in February,
featuring in all three of
the highest value losses
worth a combined total of
€1,042,705.
Germany was the country reporting
the biggest loss involving a Theft of
Vehicle in the town of Travemunde
in the Lübeck region. €355,000 of
footwear, apparel and equipment was
taken during the theft on 18 February.
The truck driver was also reported
missing, only to be later found with
injuries on the German/Polish border.
Heywood in Greater Manchester, UK,
was the scene of the second highest
theft last month after thieves carefully
dismantled a brick wall during the
night of 12 February to burgle a
warehouse facility, stealing 2,000 boxes
of sports shoes valued at €350,729.
The same product was stolen on 3
February from a destination facility
in Herning, Denmark, when thieves
took 13,000 pairs of sports shoes
worth a reported €336,908. A police
investigation is ongoing.
In fact, Clothing and Footwear
products was mentioned in five of the
top six cargo crimes in February. Police
officers who became suspicious of five
men unloading goods from a truck
into a house in the town of Philippi,
Nyanga, Cape Town, uncovered a haul
believed to stem from various truck
hijackings that included 177 boxes of
branded clothing, footwear, cosmetics,
and 88 boxes of various mobile
telephones and tablet computers. The
overall value of the goods is estimated
to be €265,000.
On the A4 highway in Arluno in Italy’s
Lombardia region, police believe
thieves used a GPS jamming device to
interrupt communications between
a truck and its control room on 16
February before using a road block to
force the vehicle into stopping. A gang
of 5-8 armed criminals smashed the
windows of the truck and threatened
the driver with guns before driving the
vehicle to a nearly location. The entire
€200,000 cargo of Clothing & Footwear
was unloaded within nine minutes
according to information reported to
TAPA EMEA's IIS.
The other crime in February involving
losses of €200,000 or more involved
a telephone call to a truck driver in
Moscow in which the caller claimed
to be the buyer of the goods onboard
the vehicle. The caller told the
driver to deliver the shipment of
Officers who became suspicious of five men unloading goods from
a truck into a house in the town of Philippi, Nyanga, Cape Town,
uncovered a haul believed to stem from various truck hijackings that
included 177 boxes of branded clothing, footwear, cosmetics, and 88
boxes of various mobile telephones and tablet computers.
MODUS OPERANDI
February 2015 Based on
crimes stating an M.O
Number of
incidents
Intrusion
19
Violent
8
Forced Stop
3
Deceptive Stop
1
Fraudulent Pick-up
1
8.3%
9.7%
12.5%
LOCATION OF
INCIDENTS
44.4%
February 2015
20.8%
Unknown 44.4%
Company Yard 8.3%
Unsecured Parking 20.8%
Warehouse 2.7%
Airport Cargo Terminal 12.5%
Destination Facility 1.3%
Enroute 9.7%
CONTINUED ON PAGE 12
>
12
IIS NEWS
CLOTHING & FOOTWEAR LOSSES DOMINATE FEBRUARY INCIDENTS: Continued from page 11
5.5%
8.3%
TYPE OF
INCIDENTS
50%
February 2015
32%
pharmaceuticals to a different
location in Klimovsk, Moscow. On
arrival, the driver was duly attacked
and kidnapped before being
released later and the cargo was
stolen.
Theft of Vehicle was the leading
type of incident in 50% or 36
crimes. IIS also recorded 23 Theft
from Vehicle crimes as well as six
Thefts from Facility incidents and
four Hijackings.
For the month as a whole, TAPA
EMEA’s IIS recorded 72 incidents
of cargo crime, including a high
number from the newly-formed
AVCIS Freight law enforcement
division in the United Kingdom,
which in January renewed its
national strategic and tactical
responsibility for road freight
crime.
The locations of cargo crimes
were reported as unknown in 32
incidents in February. Unsecured
parking was the top named
location for 15 incidents while IIS
also recorded nine thefts stated
as Airport Cargo Terminal, all in
Madrid.
Overall, 24 of the 72 incidents
reported a loss value, totalling
€2,107,356. This produced an
average loss for the month of
€87,806. There were nine cargo
crimes in February with a loss value
in excess of €100,000.
As a result of the level of incident
reporting by AVCIS Freight, the UK
topped the list of countries with
the highest number of cargo thefts
in the month, with 32 recorded
crimes. The Netherlands was
second with 19 incidents, ahead of
Spain with nine. Germany, which
has held top spot for many of the
recent months, recorded only four
cargo incidents during the month.
Theft of Vehicle 50%
Burglary 1.4%
Theft from Vehicle 32%
Fraud 1.4%
Theft from Facility 8.3%
Theft 1.4%
Hijacking 5.5%
Intrusion was the preferred modus
operandi used by thieves last
month, being listed in 19 incidents.
Eight crimes involved the use or
threat of violence.
Not surprisingly given the earlier
reports highlighted in this article,
Clothing & Footwear was the main
product category to experience
losses in February with eight thefts,
followed by Pharmaceuticals with
five and Consumer Electronics with
three.
Overall, 24 of the 72 incidents reported a loss value, totalling €2,107,356. This
produced an average loss for the month of €87,806. There were nine cargo crimes
in February with a loss value in excess of €100,000.
13
REGIONAL CONFERENCES
Regional Conferences confirmed in the UK,
Netherlands, South Africa and Italy – book now!
WELCOME OUR
LATEST MEMBERS
Following the success of last year’s Regional Conferences and the high
level of interest from members, prospective new members and local
law enforcement agencies, TAPA has opened registration for four new
events in 2015 in the UK, Netherlands, South Africa and Italy.
Please join us in welcoming the latest
companies to join TAPA EMEA:
Company
Country
iQor Aftermarket Services
As always, you are encouraged to register as soon as possible to attend these events and you can
do so on the TAPA EMEA website. Each event will present updates on TAPA Security Standards and
discuss current cargo crime trends and actions in each respective market. They also provide an
excellent networking opportunity with other supply chain security professionals in these markets.
Website: www.iqor.com
Bleckmann Nederland BV
REGIONAL CONFERENCES
Location
Date
United Kingdom
Coventry
23 June 2015
Netherlands
Amsterdam
23 June 2015
South Africa
Johannesburg
17 July 2015
TBC
21 October 2015
Italy
NL
NL
Website: www.bleckmann.com
Soncotra NV
BE
Website: www.soncotra.com
Latest FSR, TSR and TACSS security certifications
In each issue of this newsletter, we publish a list of the TAPA EMEA members that have most recently
gained TAPA FSR, TSR and TACSS certification. The following companies and locations were audited
by one of TAPA EMEA’s approved auditing partners.
FSR
Company Name
FSR
FSR
FSR
FSR
FSR
FSR
FSR
FSR
FSR
FSR
FSR
Aramex Logistics - Bahrain
DHL International UK Ltd
DHL Express Germany GmbH
DHL Express (Denmark) A/S
DHL Express
DHL Express
DHL Express - Oman
DHL Express Bahrain Hub & Gateway
DHL Express Bahrain Country Office Operations
FM ČESKÁ s.r.o.
TNT Express Bahrain
TSR
Company Name
TSR
TSR
TSR
Bergwerff Transport B.V.
Gitrans B.V.
Kuehne + Nagel Romania
Country
BH
GB
DE
DK
AE
AE
OM
BH
BH
CZ
BH
Country
NL
NL
RO
City
Muharraq
Croydon
Raunheim
Fredericia
Abu Dhabi
Dubai
Muscat
Muharraq
Muharraq
Tuchoměřice
Muharraq
Category
TSR Level 2 - Category Small
TSR Level 1 & 2 - Category Small
TSR Level 3 - Category Small
Class
A
A
A
A
A
A
A
A
A
A
A
14
INCIDENT REPORTING
ONSIBLE
P
S
E
R
S
L
A
IN
NIAN CRIM
A
U
H
IT
L
H
C
T
A
LICE C
IN LATVIA
S
K
C
ESTONIAN PO
U
R
T
O
G
R
G 14 CA
TRUCK CARRYI
FOR HIJACKIN
AKE UCK
M
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C
I
POL ETTE TR ES
CIGAR KER'S HOP ,
HIJAC IN SMOKE D
GO UPE ARRESTE
THRE
ITH
TRUCK W
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COMPUTMILLIONS
WORTH ED: POLICE
HIJACK E ON R21
NAB ON
N
COMPUTERS HIJAG
IN HEIDELBERG CKED
N OR
E
E
T ED F
R
FOUREST
AR UCK ING
TR JACK
HI
TWO
ARRESTED
AFTER
TRUCK
HIJACKING
SEE IT
SEND IT
Over 50% of the intelligence
gathered by TAPA’s Incident
Information Service (IIS) is
generated from media reports.
If you see a reported cargo crime incident,
just take a second and send the news link to
[email protected]
TAPA INTELLIGENCE
DRIVES A SECURE
SUPPLY CHAIN
15
WORLD CRIME
WORLD CRIME
SIX YEARS IN JAIL AND $60 MILLION
IN RESTITUTION FOR MEMBER OF
FLORIDA GANG INVOLVED IN
PRESCRIPTION DRUG THEFT
Last mile ‘nap’
results in
$300,000 loss
A last mile delivery truck was hijacked
in Brazil on 1 March when two men
took control of the vehicle at 03.00hrs
when the driver stopped at an
unsecured parking location at Beira da
Rodavia to sleep.
A member of a South Florida cargo theft ring
was sentenced to about six years in prison
earlier this month for his role in the 2010 theft
of between $50-100 million in prescription
drugs from a warehouse in Enfield.
Yosmany Nunez, 42, was part of a five-man
team that reportedly obtained schematic
drawings of the 70,000-square foot
warehouse and used the drawings to pull
off one of the biggest pharmaceutical thefts
in U.S. history. Upon his release from the
75-month sentence, U.S. District Judge Janet
Bond Arterton ordered Nunez to begin paying
a staggering $60 million in restitution, the
terms of which are being negotiated.
After monitoring the warehouse and obtaining
a tractor trailer truck and other equipment,
investigators said, the thieves lowered themselves
into the warehouse through a small hole they cut
in the roof and disabled the sophisticated security
system. They spent the next five hours, over a
Saturday and Sunday, using forklifts to load 49
pallets of drugs onto a rented tractor trailer.
The thieves transported the drugs, manufactured
to treat cancer and mental disorders, to south
Florida for sale on the black market, authorities
said. The thieves were not captured until two
years after the robbery. The FBI found them by
tracing a fingerprint found on a plastic water
bottle left behind in the warehouse. The FBI
tracked the gang to Miami where agents caught
them negotiating for the sale of some of the
pharmaceuticals overseas.
The transaction the FBI interrupted involved the
sale of $1.4 million of drugs for $150,000.
All five of the gang members pleaded guilty to
charges related to the heist.
Another man, Alexander Marquez, was sentenced
to a year in prison and three years supervision
following release for driving the trailer.
They drove off in the truck with the driver
still onboard. He was later released but
the thieves got away with an estimated
$300,000 of pharmaceuticals, sportswear,
tools and car parts.
Navy disowns
truck hijacker
The Nigerian Navy has disowned a man
reported to be a former naval officer
for his alleged involvement in a truck
hijack that resulted in the loss of goods
valued at N20 million (approximately
€92,000).
The suspect, Lawal Alli, denies ever
serving as a naval officer but told police
he obtained a naval uniform and wore it
to commit the crime. He has been handed
over to the country’s Special Anti-Robbery
Squad in Ikeja, Lagos.
CONTINUED ON PAGE 16
>
16
WORLD CRIME
Freight theft one of the considerations in
review of future driverless vehicles
Freight theft was one of the issues considered
in a review of the future potential of
driverless vehicles.
between cars has put pressure on manufacturers
and consumers to ensure connected systems
remain safe.
The report by the Institution of Engineering
and Technology (IET) and the Knowledge
Transfer Network (KTN) calls for greater industry
collaboration and transparency in developing
connected and driverless vehicles to ensure that
future autonomous vehicles are safe from cyber
threats.
A review by Automotive Cyber Security on the
progress made in developing technology like
driverless cars considered the possible cyber
security vulnerabilities and highlighted how a
number of manufacturers in the automotive
industry are responding to fears that vehicles of
the future could be ‘hacked’.
Cars are already more ‘intelligent’ with driver
assistance systems, alerts and notifications,
cameras and in-vehicle decision support systems
already commonplace. Over the coming years,
connected technologies between both vehicles
themselves and the transport infrastructure will
become an integral feature of the global vehicle
market, which is estimated to be worth €39bn by
2018. The increasing use of connectivity in and
Based on research and consultation with industry,
the review outlines a number of potential issues
and threats including personal data theft, fraud
and deception (altering or deleting schedule
logs and records), freight and goods theft; and
automotive ‘hacktivism’ – cyber infiltration of a
vehicle’s systems that is politically or ideologically
motivated – and immobilisation and inflicting
disruption to the operation of a vehicle.
GPS devices help to
counter fuel theft
Bulgarian State Railways’ Freight
Services division has installed
53 GPS devices to monitor daily
train movements to counter an
increase in fuel theft.
Mexican cargo
thieves prepared
hole to bury truck
to conceal tobacco
theft
The lengths to which cargo thieves are
prepared to go was demonstrated in
Mexico recently when police discovered
a hole prepared by criminals to bury
a trailer they had stolen, which was
carrying tobacco products.
Police were alerted to the theft of the
truck, which was traveling on Mexico’s
Highway 57 from Jalisco towards Nuevo
Matehuala León. The last signals from
the truck’s GPS enabled police to locate
the vehicle in an area 40 metres from
the road. The thieves had disappeared
before the police intervention but officers
discovered a freshly excavated site being
prepared to bury the vehicle as well as
three GPS ‘jammer’ devices, which were
being fed by a power plant.
17
MARKET FOCUS - SPAIN
MOST STOLEN
PRODUCTS
Jan 2011September 2014
Spain falls victim to the same types of cargo crime as seen across the rest of
Europe, according to Blas Guillamón Campos, head of the Property Crimes
Group of the Criminal Intelligence Unit, Guardia Civil.
Sharing incident data with TAPA EMEA members
in Madrid, he said 1,471 cargo crime incidents had
been reported in Spain in the period from January
2011-September 2014. This included 480 in 2013
and 328 in the first nine months of last year.
Madrid is the location of most cargo thefts,
accounting for 469 or 31.8% over the 2011-2014
period. Andalucia saw 392 (26.4%) of crimes,
followed by Castilla La Mancha with 197 (13.3%)
and Aragon with 91 (6.1%).
973 or 66% of the crimes took place during the
night compared to 347 in the morning periods
and 176 in the mid part of the day. Over 1,000
of the incidents involved a theft from a truck or
trailer, he said. Hotspots for freight thefts in Spain,
Number of
incidents
Parcels
253
Food
216
Textiles
120
Alcohol
99
Household Appliances
77
Cosmetics
60
Televisions
56
Car Parts & Tyres
44
Electronics
39
according to police figures, are Madrid, Zaragoza,
Granada and the area north of Madrid between
Segovia and Guadalajara.
Overall, only 3.3% of cargo crime in Spain is
reported to include violence or the threat of
violence.
Spanish nationals are responsible for 81% of the
1,471 cargo crimes. Romanian nationals account
for nine per cent and Moroccan nationals for five
per cent.
Four of the biggest challenges for law
enforcement agencies in Spain trying to deal with
cargo crime are the mobility of criminals, crossborder movements, language issues and the low
punishments imposed for such crimes.
TAPA AND INDUSTRY events...
APRIL
01 - Middle East Cargo & Logistics
02 Manama (BH)
http://www.cargomiddleeast.com/
08 - International Security and Fire
10 Casablanca (MA)
http://isafemorocco.com/index.php/en/
10 - BCN Rail - Barcelona (ES)
12 http://www.bcnrail.com/
10 - Transporta Technika - Riga (LV)
12 http://www.bt1.lv/transport/
11 - Logistikka - Tampere (FI)
12 http://www.logistiikkamessut.fi/
13 MIPS - http://www.mips.ru/en-GB
16
14 - Access Security - Marseille (FR)
16 http://accessecurity.fr/uk/
14 16 IPOMEX - Münster (DE)
http://www.ipomex.com/
APRIL
16 - Transpotec - Verona (IT)
19 http://www.transpotec.com/
21 - TransRussia - Moscow (RU)
24 http://www.transrussia.ru/eng
MAY
05 - Air Cargo Europe Transport Logistic - Munich (DE)
08 http://www.aircargoeurope.com/
http://www.transportlogistic.de/
06 09
10 12
12 14
12 14
Segurex - Lisbon (PT)
http://www.segurex.fil.pt/
MAY
18 - European Food Manufacturing & Safety
19 Summit
Noordwijk (NL)
http://www.foodmanufacturingevent.com/
19 - ISET - Brno (CZ)
21 http://www.bvv.cz/iset/
19 - Logistik & Transport - Gotheburg (SE)
21 http://www.logistik.to/
27 - Security Forum - Barcelona (ES)
28 http://www.securityforum.es/en/presentation/
SSS - Dammam (SA)
http://www.sss-arabia.com/
Securex - Johannesburg (ZA)
http://www.securex.co.za/
Transcaspian - Baku (AZ)
http://www.transcaspian.az/2015/
13 - Logitrans - Estoril (PT)
14 http://www.logitrans.ife.pt/homepage.
aspx?menuid=1
If you are aware of any events
that might be of interest to
TAPA EMEA members, please
email the details to
[email protected]