Cargo theft isn't a headline-grabbing issue, but it is a costlythreat to businesses. Unfortunately, the chance of cargo thefthappening isn't contingent on the type of products beingtransported. Thieves target goods that not only have real intrinsicvalue, but also those that can be easily sold on the gray or blackmarket. Although consumer electronics, designer apparel, wine andspirits, pharmaceuticals and others are recognized as high-riskproducts, there is a wide array of merchandise that is regularlystolen.

To best protect cargo in transit, businesses should implementsolutions that combine physical and procedural controls. Theyshould also apply a layered approach to cargo loss control thatincorporates four key components:

• Threat, to identify potential adverse events
• Vulnerability, to identify weaknesses in processes andprocedures
• Criticality, to identify and evaluate important operations andassets
• Risk, to determine the likelihood, severity and impact of anadverse event

When developing acomprehensive risk management plan, several areas should beaddressed, including but not limited to:

• Select a carrier or transportation provider that is reputable,provides real-time tracking of shipments, and has an establishedand viable method of tracing and locating missing shipments.
• Use new, well-constructed packaging materials with featuresthat can indicate whether tampering occurs duringtransportation.
• Set practical size and monetary limits on shipments in transitto minimize the financial and operational impact of any loss andrequire documented accountability every time the shipment changeshands during transit.
• Select storage facilities with established emergency plans thataddress all natural disasters such as earthquakes, floods andwindstorms, and ensure storage facilities are located in an areathat is not surrounded by hazardous operations.
• Require storage facilities to be guarded by qualified securitypersonnel on a 24/7 basis, and all entrances/exits (even at rooflevel) should be protected by motion detectors, alarms andsurveillance cameras.
• Check all dropped/staged containers and trailers at least onceevery four hours; inspections should be conducted at differenttimes to avoid establishing a pattern. High-value loads should bepositioned in areas that are under constant supervision.
• Keep all shipment documentation confidential, including billsof lading and delivery receipts.
• Require all employees of the storage facility, includingtemporary, seasonal and contract maintenance staff, to go throughcomprehensive pre-employment screening with a background check,including driving, criminal and credit reviews.
• Always involve your logistics, security, risk manager and otherrelevant professionals in the development and implementation ofcargo/transit security practices.

By proactively taking steps to prepare and protect cargo, andworking with suppliers to ensure appropriate procedures arefollowed, businesses may be able to minimize the frequency andseverity of their future losses.

Download Chubb's full advisory, “CargoTips: Securing Cargo in Transit” for detailed guidelines on howbusinesses can help protect their goods in transit. Developed byChubb's risk management specialists, the advisory also includesspecial recommendations for drivers to help mitigate the risk ofhijacking-related losses.

Chubb is the marketing name used to refer to subsidiaries ofChubb Limited providing insurance, risk management and relatedservices. Operators and insureds are responsible for safety andrisk control. Chubb is not responsible for ensuring the safety orrisk control of any operation, and we are not required to make anyinspections of any operations, although we may exercise our rightto do so from time to time under the terms and conditions of ourinsurance policies. This summary is for informational purposesonly. We hereby disclaim any obligation to oversee or monitor anyfacility's or insured's adherence to any guidance or practices setout in this document, or to any other required or otherwisereasonable safety and risk control practices. This document is anoverview only, and is not intended as a substitute for consultationwith your insurance broker, or for legal, engineering or otherprofessional advice.