Saturday, July 24, 2010

FreightWatch International: 2010 Bi-Annual Cargo Theft Report

FreightWatch International recently released its 2010 Bi-Annual Cargo Theft report.

As it relates to pharmaceutical cargo theft, FreightWatch is reporting the number of incidents has declined so far this year from last. However, the the overall volume or value of each incident and sophistication/organization has increased.

This seems to be exemplified by the huge Eli Lilly warehouse theft earlier this year where thieves stole $76 million in pharmaceuticals in a very sophisticated burglary.

Here are some of the highlights of the bi-annual report:

• In the first six months of 2010, cargo theft recorded by FreightWatch has increased 5% over the same time period in 2009. Additionally, there have been several noteworthy trends that differ from cargo theft recorded in the previous year.

• First, multi-trailer losses are becoming increasingly common. Cargo theft gangs are stealing two, three and even four trailers at a time, most commonly from terminals where trailers are more likely loaded with similar product. FreightWatch views this as the natural progression for cargo theft gangs, as they moved from "pot luck" style cargo theft to active targeting; now gangs are seeking a better return for their efforts, hitting multiple trailers at once while incurring the same level of risk.

• Second, Food and Drinks replaced Electronics as the commodity type most targeted by cargo theft gangs over the period examined. Electronic theft has decreased by 23% in the first half of 2010. As a point of comparison, at this same time last year, pharmaceutical thefts were down 50% over the previous year's rate, while the commodity group ended with a slight increase in volume for 2009.

• Third, in 2009, warehouse burglaries were up 50% over the previous year's rate, but slowed significantly through the rest of the year. FreightWatch recorded 12 warehouse burglaries in the first half of 2010, a decrease in the overall rate of incidents. However, due to a $76 million dollar loss in Enfield, Connecticut, the largest cargo theft incident on record, the total estimated loss rose sharply from $38 million in 2009 to $102 million in 2010.

The rise of the sophistication and organization of pharmaceutical cargo theft should trouble all within the pharmaceutical supply chain. This criminal act within the vital health care chain is evolving beyond random acts of theft and threatens the ability of all its members to protect their inventories, brand and safety of the consumer.

Secure Pharma Chain encourages all members of the pharmaceutical supply chain to utilize technologies to protect their inventories and authenticate all products within it.

To download this report in its entirety, visit:

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