NCJ Number
190932
Date Published
September 2001
Length
6 pages
Annotation
This paper provides an overview of cargo theft in Australia and discusses some target-hardening, freight-forwarding, and inventory-control strategies that can be adopted by smaller organizations to reduce the risks of cargo theft.
Abstract
Cargo theft in Australia creates substantial economic losses for victimized companies. Worldwide losses to owners and insurers are estimated to exceed $30 billion a year. The illegal sale of stolen cargo also undercuts prices in legitimate businesses. Cargo can be stolen either by employees or by external perpetrators. The modus operandi can involve hold-ups, theft from freight yards, theft from containers, theft off of trucks, or documentary fraud. The cargo can be legitimately in transit, already illegally in the possession of other offenders, or being transported in a way that avoids excise duty or other taxes. Although losses to cargo theft are significant, much cargo theft goes unreported, since many small business owners consider that the formal reporting of cargo loss may cost more time and effort than the returns warrant. Strategies for reducing cargo theft include physical target-hardening measures in freight-forwarding yards, warehouses, and vehicles; tight freight-forwarding security procedures that limit access to cargo; and detailed cargo inventory and movement trails that allow for rapid auditing and pinpointing of losses. 31 references