Cargo Criminals Eye Backlogged Cargo in West Coast Ports

March 11, 2015 | Industry Insights

Cargo Criminals Eye Backlogged Cargo in West Coast Ports

Share This:
Featured Image

As terminal operators and truckers try to process the weeks or months of backlogged cargo at West Coast ports, thieves are looking to grab low-hanging fruit.

From 2013 to 2014, 25% of all recorded cargo theft in the United States occurred within 200 miles of the ports of Los Angeles, San Francisco and Seattle, according to FreightWatch International. The surge in cargo activity resulting from the normalization of West Coast port operations is expected to stress trucking assets and port security. Fictitious pickups in the above-mentioned ports have been 100% higher than the national average over the past two years.

The pressure to process cargo speedily could lead to complacency or leniency in port security practices as well as carriers’ use of less seasoned drivers. Overriding best practices for transportation security could open doors for opportunistic thieves, including organized cargo theft groups.

The National Retail Federation estimates that cargo moving through the 29 ports on the West Coast of the U.S. represents 12.5% of the country’s gross domestic product! Put in a line, the containers that were awaiting unloading at the ports would have stretched 579 miles, according to the Associated Press. The Port of Los Angeles estimates it will take three months to get back to normal. Oakland figures on eight weeks.

The fourth quarter of 2014 saw a surge in the volume of cargo thefts in the U.S., Security Today reports, citing the Supply Chain Information Sharing and Analysis (SC ISAC) 2014 Q4 report. Reported incidents of cargo theft in the fourth quarter rose 40% from the third quarter, totaling 259 for the October-December period. Texas led in number of thefts, followed by Florida, California and New Jersey.

Weekends were the most active periods, and when Friday and Monday are included, the four-day period encompassed 70% of cargo crimes. Consumer electronics was the most popular target, with the usual first-place food tying for second with metals. When broken down by commodity, automotive supplies took the top spot, followed by steel. Fourth-quarter losses are estimated at $46 million.

With massive cargo flow and potential lapses in security at the ports and on the road, cargo carriers are urged to double down on their cargo theft prevention. While insurance for theft can help ease the pain of a theft in terms of money, the stress and potential permanent loss of clients is one your policy can’t take care of for you. Best business practices are crucial, especially when dealing with crisis management, such as those that carriers face at backlogged ports out West. At Roanoke Trade, we not only provide best-in-class cargo insurance, we also have risk management solutions that can help you round out your transportation operations.

We invite you to learn more about us, our experienced talent in this highly specialized area, our creative solutions, and the value we will bring to you and your clients. Please contact us at 1-800-ROANOKE.

Sources: Freight Watch, Security Today, Associated Press

Share This:

Related


Roanoke Appoints a New Regional Vice President and Head of Sales

Roanoke has appointed two key leaders to new roles, effective November 1, 2023. Please join us in congratulating Patrice Lafayette for accepting the position of Regional Vice President, Western Region, and Grant Goldsmith, who has accepted a position as Head of Sales. Patrice has been a steadfast leader of Roanoke’s Western Region for more than 17 years. She started her career as a Bond Account Manager and has held several roles during her tenure, including Bond Manager and Director of Sales for the Long Beach Sales team, and most recently, has been responsible for managing relationships with many of our […]

Industry Insights

Leadership Excellence: Karen Rzeszutko Represents Roanoke on USCIB Board

We are excited to share that Karen Rzeszutko, President of Roanoke Insurance Group Inc. has been appointed to the Board of Directors of the United States Council for International Business (USCIB) for the 2024-2026 term. This appointment recognizes Karen’s outstanding leadership and her significant contributions to the industry. The USCIB, a prominent organization dedicated to promoting the success of U.S. businesses globally, has welcomed new and reelected members to its Board of Trustees and Board of Directors. The announcement, made on May 20, 2024, in New York, NY, includes a diverse group of leaders from various sectors who will bring […]

Industry Insights

Roanoke Introduces New Client Experience Department!

Roanoke Insurance Group is excited to announce the formation of our Client Experience department. This new department will be led by Amanda Barlow, who has served our clients in a variety of capacities throughout her tenure at Roanoke. Most recently as the Regional Vice President of our Western region. Roanoke’s Kylie Reinert will join Amanda in building our Client Experience Department as Client Success Enablement Manager, which is a role she has been performing for the past year. The Client Experience team will be laser-focused on one overarching goal—to identify and implement strategies which make it easy and enjoyable for […]

Industry Insights

Roanoke is the leading provider of insurance and surety solutions for transportation and logistics providers. In fact, we are recognized as the most reliable source for U.S. customs bonds.

Contact

If you have any questions or need help, feel free to contact with our team.

800-762-6653
US Flag

US CORPORATE HEADQUARTERS

1501 E. Woodfield Road

Suite 400W

Schaumburg, IL 60173


Canada Flag

CANADA CORPORATE HEADQUARTERS

390 Bay Street

Munich Re Centre, 22nd Floor

Toronto, ON M5H 2Y2

Solutions that Go the Distance.

© 2024 Roanoke Insurance Group Inc.

Better Business Bureau logoCoverholder at Lloyd's logo