Security Gaps Expose Cargo To Terrorism

MONTEREY, Calif.

The makings of a new terrorist attack might be right in front ofyour eyes at any major U.S. port, and you may not even know it,warned a leading security consultant, who cited containerized cargoas a looming security threat.

“Less than 5 percent of cargo brought into the U.S. is inspectedat our ports,” said Roger Browning, a 27-year veteran of theFederal Bureau of Investigation who is now a consultant to Phoenix,Ariz.-based Risk Control Strategies, which specializes incounterterrorism and workplace violence.

That unchecked cargo could include terrorist weapons, bombs andother destructive devices, Mr. Browning indicated in remarks hereduring the 75th annual Inland Marine Underwriters Associationannual conference.

Cargo isn't the only transportation-related terrorism risk, henoted, citing the threat of suicide bombers transporting explosivesin trucks, vans or other vehicles that could easily blend intotraffic. He said Oklahoma City bomber Timothy McVeigh showed theworld the deadly effects of a terrorist attack using a truck loadedwith explosives.

Mr. Browning observed that terrorists have come to realize thata van, packed with explosives that are well hidden, wouldn'tnecessarily raise any red flags with a security guard who ispatrolling the front gate at a large manufacturing plant.

“Terrorists watch CNN like you and I do,” he said. “They dosophisticated surveillance of possible targets,” with particularattention paid to on-site security vulnerabilities and tendencies.For example, he noted, terrorists scrutinizing the lay of the landat an airport would find out how close parking lots are toaircraft.

In addition, “terrorists want names of leaders–for example,corporate executives–they might kill or take hostage,” said Mr.Browning. “They're also looking for telephone lines and locationsof switchboards, where security guards may be stationed, wherethere are walls, gates or other barriers.”

Mr. Browning said that terrorists sometimes turn oversurveillance work to relatives, getting them jobs at targeted sitesso they can obtain information needed to pull off a successfulattack.

After his talk to IMUA, Mr. Browning offered risk managementrecommendations to businesses in a follow-up interview withNational Underwriter. “A site analysis is very important topreventing terrorists from getting free access to the facility orbusiness,” he advised. “Employees trained in surveillance detectionand attack recognition are needed to help develop a proper responseto the initial attack.”

A second security expert on the IMUA panel emphasized thevulnerability of the nation's cargo transportation system–not onlyin terms of terrorism concerns but standard theft as well.

Indeed, Barry Conlon, business development director for securityconsultancy First Advantage Corp. in Austin, Texas, estimated thatcargo theft totaled between $18 billion and $20 billion last yearin the United States alone, with the figure running about$30-to-$50 billion worldwide.

Mr. Conlon emphasized that the supply chain can vary fromcompany to company, adding that “it's important for each companyinvolved to know how the product is moving in each region orcountry and to understand any associated threat.” He acknowledgedthat it's common for manufacturers to rely on many differenttransportation partners while moving products.

In many cases, he said, “the chosen freight forwarder willsubcontract over-the-road movements to a variety of differenttransportation companies, some of which will have no securityinfrastructure,” and hire drivers for the job without investigatingtheir backgrounds.

In the United States, when a full truck-load theft occurs, inmany cases the loss can be attributed to the drivers' poor securitypractices during rest breaks and their lack of understandingregarding the dynamics of cargo theft, he noted.

Supply Chain Threats

Mr. Conlon urged manufacturers and exporters to become aware ofsupply chain threats and to mandate “risk mitigation measureswhenever possible. Unfortunately, sometimes that message gets lostalong the way. In the multitiered transportation system, themessage [often] fails to reach the most vulnerable link in thechain–the driver.”

For manufacturers or exporters who wish to make cargo theft apreventable exposure, he added, “a detailed understanding of howtheir freight moves and the general security conditions associatedwith these movements is necessary.”

Mr. Conlon recommended that manufacturers work in partnershipwith their various transportation providers to ensure theirsecurity message reaches drivers and all other parties involved intransporting freight.

A third IMUA panelist–Rich Hailey, a detective with the LosAngeles County Sheriff's Department–focused on his department'sspecialty investigative unit–the Cargo Criminal Apprehension Team,or “Cargo CATs”–which he said has recovered some $205 million instolen property.

Cargo CATs got started in 1990, but budget cuts in 2002 “put usout of business for several months” until a few insurance companiesand others in the private sector donated money to reactivate theunit, according to Mr. Hailey.

“Our unit isn't as large as it was before, but we're doingeverything we can with what we've got to combat cargo theft,” hesaid.