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Every supply chain consists of not just the manufacturing and warehousing of products, but their
Cargo Theft continues to be a growing threat in the logistics industry. One of the major causes would be the unorganized nature of the industry in India. Additionally, the absence of proper labor laws in place and the plight of the Indian highway and roadway system seem to keep the logistics industry from functioning in a more organized fashion. Furthermore, the Covid 19 restrictions have burdened the industry workers.
In the summer of 2020, when in-transit workers were forced to abandon their cargo and move back to their hometowns, a lot of the abandoned cargo was reported stolen. The main problem was caused by the fact that the blame could not be placed on a single party since these were extraordinary circumstances. This, however, remains to be a case whether no active theft had taken place. The theft of abandoned cargo is a controversial matter and remains to be a moot point.
However, in 2020, in one specific incident near Hyderabad, mobile phones worth Rs. 2 crores were reported missing while in transit. The truck driver happened to notice the open container door soon after leaving a rest stop. To be exact, 2442 units of mobile phones had been successfully stolen.
Other cargo types, besides electronics, that pose to be at risk would be the theft of alcohol and tobacco. Considering the increase in cargo theft on roads, one can only be more careful and take precautionary measures to avoid such incidents.
In retrospect, the theft of those mobile phones worth Rs. 2 crores could have easily been prevented with a few simple, yet smart precautionary measures. With the evolution of technology, we can now use this to our advantage without having to spend a lot of money.
There are multiple ways in which cargo theft can be carried out. Below are the various types of cargo theft -
In Asia, India and China contributed most to cargo theft. Like previously mentioned, due to the unorganized nature of the Indian logistics system, it is still not a complete overview of the theft. There might be numerous cases which have gone by unnoticed too, mostly due to corruption in the system and/other other reasons. In India specifically, northern India reported the most number of cases. The state of Uttar Pradesh alone accounts for 25% of the theft reported in India.
Many fleet owners have now started investing in better anti-theft technology for their vehicles. At Fleetx, we take the safety of your cargo very seriously. Below are some of the anti-theft features that we provide to our clients as anti-theft solutions -
One can not stress enough on the importance of safety of the cargo while in transit. Given the unorganized nature of Indian roadways, it is only advisable to take all necessary precautions to avoid any mishaps. This is for the integrity of the cargo as well as the safety of the drivers. It is always wise to be cautious rather than incur losses later.
Following are ways you can avoid cargo theft -
The key to protecting any business is analysing the various threats and risks beforehand and taking precautionary measures. There are multiple supply chain management tools that can help individual businesses in identifying these threats. Cargo theft is at an all-time high. With sophisticated and complex supply chain systems, crime has also evolved and cargo thieves have started resorting to various measures. Investing in precautionary measures turns out to be more financially safe than suffering losses later.
Various types of infrastructure systems like doors, walls, fences are categorized as physical access control Furthermore, security systems like electronic locks, alarm systems, security surveillance like CCTVs, security personnel also come under the same category. In defending a supply chain, physical security is usually the first line of defense.
This is why securing physical safety and investing in physical security methods like using keys, access cards, container locks, high quality fencing, and securing areas for warehousing are literally the most effective ways of preventing cargo theft.
There are two devices to help overall probability of cargo theft.
Electronic locks or e-locks are basically used to maintain the integrity of a storage space. These are very popular among logistic companies. Rudimentary locks are just like electronic safes that are password protected and can be accessed using a keypad.
These same electronic locks or e-locks have been further modernized and now can be accessed remotely using a specific app.
In cases of tampering, the elock will mostly shut down and not be accessible unless a trained professional or authority with the right softwares and tools can access it again.
E-seals are basically new-age sealing devices which contain an RFID chip inside it. The e-seal can then be scanned using specific reading devices. These RFID tags inside the seals are basically electronically stored information regarding the cargo and its contents.
The readers are connected to the Data Retrieval System of the Vendor. These RFID tags are also required to keep with the ISO standards.
The reason this seal is effective is because it can not be tampered with. It is a one-time seal bolt, which means it can only be closed, opened, used just once. Each of these seals has a unique serial number attached to it which can be scanned to maintain the integrity of the seal.
Cargo is most vulnerable when it is in transit. The level of security offered in warehouses or storage distribution fasciitis is hard to match up to while on the road/rail/air. Companies do not have control of conditions on the road, and once the cargo has been handed over to the logistics company, they have limited control over tracking their cargo.
Some of the best ways to protect your cargo from theft, tampering or pilferage would be
Technology has become an integral part of the supply chain. From daily operations, to routes, paperwork and contact details, almost all information is now online. Sophisticated security measures have also given rise to sophisticated crime. Criminals are now able to hack into insecure portals. This gives criminals access to sensitive information regarding cargo shipments. Moreover, they can also manipulate or change information on the portals, making it seem legitimate. Information such as routes, contacts details and fraud warehouse drop or pickup points can be forged. Cargo theft using fictitious pickup details has come to be very popular in the logistics industry and such cases where thieves have literally driven off with cargo have become common. It is often too late by the time the legitimate authorities realise that the theft has occurred. So, extensive cyber security measures are now proving to be crucial.
Blockchain is a shared decentralized database which allows multiple players to change and update information. Unlike conventional online portals, since this network is accessed by recognized personnel, each piece of data can be linked back to specific individuals. When such a shared system of record keeping is put in place, it can also be used to verify and crosscheck data through an unbroken chain of transaction blocks that can be easily verified. Hence, blockchain is actually a very good approach to protecting cargo related information.
Warehouses and cargo distribution centers are the most secure places for cargo to be stored. However, even such secure facilities can be threatened from time to time. Usually, theft at secure locations requires inside help. This could basically mean that employees or workers are involved in the theft. This is not surprising since employee theft is one of the biggest causes of discrepancies in inventory checks. Another thing to note is that it is usually the work of multiple players, like employees in charge of loading, drivers, etc. It is mostly a group effort by various parties involved in the storage of cargo. It would be advisable to do a complete background check on all employees and have data on all employees in such unfortunate events.
Cargo is usually transported using shipping containers as it poses a more convenient method while changing hands or modes of transport. Keeping aside conventional locking systems, the most effective ways are -
GPS tracking systems for cargo have become very popular. These are basically devices fit in the cargo which transmit live geo-locations to a remotely accessed network. GPS trackers have proved to be helpful in scenarios where cargo thieves have stolen cargo vehicles with the entire truckload.
Smart containers are the complete package. GPS tracking is one of the most basic features offered. These containers are capable of detecting anomalies or changes in temperature and pressure of the container. In cases where thieves drill holes in the side of the container or try tampering with the locks, the smart system can detect it all and inform the authorities. They can even be equipped with loud alarms in such cases to throw thieves off.
Depending on the usage of the container, the materials used can vary from heavy-duty metals to plastics and even paper. Some containers are meant to prevent tampering and some are meant to delay theft. Additionally, the type of damage to shipping containers can indicate whether the shipment was tampered with by unauthorized personnel. The two most primary seals are -
These are used for high value goods or delicate shipments such as chemicals or pharmaceutical products. These are a lot like smart containers, except these come equipped with an information logging feature. The information contained is usually things vital to the cargo, temperature, time, conditions, etc. These are often fitted with RFID tags or NFC wireless technology that help in protecting the integrity of the cargo, as mentioned above.
Global supply chains are a complex system which also means that there are now more threat points and risk factors. Complying with international supply chain certifications help independent business owners stay up to date with such threats and ways to combat them. Below are some international certifications that one could look into -
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