Global Intelligence Note SUPPLY CHAIN INTELLIGENCE CENTER 25 January 2019

The SensiGuard™­ Supply Chain Intelligence Center (SCIC) presents a summary of major incidents and news articles EMEA relating to cargo theft and intelligence for the week ending 25 January 2019.

EMEA Poland Ukraine...... 1 France...... 2 24 January 2019: An operation against United Kingdom...... 2 freight thieves has resulted in success by Germany...... 2 the Polish police with the support of foreign Kenya...... 3 colleagues: In a large-scale police action South Africa...... 3 under the leadership of the Polish police, a The Netherlands...... 3 gang was broken up in Gorzów, Poland. This ensured goods United Arab Emirates...... 3 were recovered that they had probably stolen from trucks Ethiopia...... 3 before. The police arrested ten people. The campaign secured APAC goods worth more than €100,000, including electronic devices, India...... 4 branded clothing, cosmetics and cars. This has been reported by the Polish police. The police action was planned several Japan...... 4 months in advance. The reason for this was evidence of freight China (Hong Kong)...... 4 theft in various European countries, including Germany. The China/U.S...... 5 investigation found that it was a criminal group operating from China...... 5 Poland. According to the police, the modus operandi of the Indonesia...... 5 group has always been similar—after carefully checking the New Zealand...... 5 parking lot and making sure the drivers were asleep, they Pakistan...... 5 would cut open the tarpaulins to check what kind of cargo Malaysia...... 6 was being transported, before taking the goods. According to Philippines...... 6 the investigators, the group could have been active for at least North & South America two years, creating a structure with clearly distributed roles and Brazil...... 6 tasks. Police also know that several people in Gorzów may also Mexico...... 7 be involved in these criminal activities. U.S. & Canada...... 8 Read more: Verkehrs Rundschau (Germany)

sensitech.com Germany 21 January 2019: Four unknown men slit the tarpaulin of a semi-trailer on a parked truck 24 January 2019: A group of “curtain slashers” at the rest area “Parkplatz Dong” near Moers arrived to the service area Rasthof Nievenheim, (North Rhine-Westphalia) on the A57 in the near Dormagen (North Rhine-Westphalia) direction of Nijmegen. They then opened the on the A57 in the direction of Krefeld. They cut tailgate of the trailer and searched it for valuables. The driver the tarpaulins on more than forty semi-trailers, but did not enter woke up because of the movement of his trailer and got out of them. As they got on the truck of a 24-year-old truck driver, he the truck. He saw four males. One of the people threw a glass became aware of them. Immediately, the men took flight and bottle at him, but narrowly missed him. The perpetrators fled in disappeared in two cars on the highway A57. Law enforcement a silver-colored or gray small car. It is unconfirmed if anything officers were notified and discovered the fleeing vehicles. After was stolen. a short pursuit, the vehicles were stopped, and arrests were Read more: PressePortal (Germany) made.

Read more: PressePortal (Germany) 20 January 2019: Perpetrators cut the tarpaulins of the trailers of at least four trucks 23 January 2019: Cosmetics worth over at the service area Geismühle West on the A57 €40,000 were stolen from a trailer during the in Krefeld (North Rhine-Westphalia) and night on the grounds of a Lindenthal (Leipzig) stole several sets of scissors. The drivers of the trucks did not company. According to the police, the driver of notice the nighttime thefts because they were asleep in the truck a semitrailer vehicle discovered that numerous cabs. Only the next day at 13:00 were the thefts discovered. packages of goods were missing in his cargo area. The truck Read more: Westdeutsche Zeitung (Germany) was already parked on the premises overnight and was due to be unloaded in the morning hours. The alerted officers noticed 20 January 2019: Unknown offenders cut the a crack in the tarp, which may have given the thieves access to tarpaulins of two semi-trailers on the motorway the cargo area. Upon closer inspection of the cargo, the forces rest area Raststätte Rhynern Nord on the A2 discovered that fifteen of the pallets lacked a large number of near Hamm (North Rhine-Westphalia). In parcels. both these cases, nothing was stolen. This rest area saw many Read more: Leipzoger Volkszeitung (Germany) incidents during 2018. Read more: PressePortal (Germany) 21 January 2019: Unknown offenders targeted trucks parked on a company premises in the industrial park Gartenkamp in Westerkappeln (North Rhine-Westphalia). In one case, an France overseas container was broken open; in the other, the tarpaulin of a trailer was slashed. Boxes on the loading areas were also 24 January 2019: Five criminals suspected opened, probably in search of product. of attempting to steal a shipment of cigarettes Read more: Westfälische Nachrichten (Germany) from a delivery truck were arrested after being followed for several hours by the police. They

21 January 2019: At Rastplatz Galgenberg, were in the sight of the BRI and investigators of the judicial on the A38 near Nordhausen (Thuringia), police of Meaux for alleged robberies of cargo trucks carrying curtain slashers cut the tarpaulins on a truck/ cigarettes. Under close surveillance, the perpetrators scouted trailer parked overnight and stole thirty-six high in a vehicle in Seine-et-Marne before attempting to steal a truck quality car batteries with a value of approximately €5,000. carrying cigarettes on the A4 motorway. The maneuver, however, Read more: PressePortal (Germany) failed, and the five individuals left, still closely followed by the police. The group split up, and the police intervened. Several gunshots sounded as the perpetrators tried to flee. Read more: BFM-TV (France)

sensitech.com SCIC Global Intelligence Note 25 January 2019 2 South Africa United Kingdom

23 January 2019: Several boxes of cellphones and 22 January 2019: Counterfeit designer products laptops were stolen during the robbery of a courier worth an estimated £2.5m ($3.2m) have company in Walmer. A gang of five men entered been seized in Birmingham, U.K. The fakes a courier company warehouse in Caravelle Street, included handbags, watches, purses, belts, Walmer, only hours after another courier truck— electrical products, footwear, sunglasses, and accessories, but transporting appliances worth about R1m—was hijacked on the there was particular concern about 50,000 bottles of various N2 outside Port Elizabeth. During the courier truck Hijacking, a designer branded perfumes that likely don’t comply with the gang forced a truck off the road on the N2 while it was exiting Cosmetic Products Enforcement Regulations 2013, and may be the Bay. The driver was kidnapped and the truck taken with hazardous to health. the stock—including televisions, washing machines and other Read more: Securing Industry appliances—later found offloaded in Motherwell, along with the driver. Read more: Herald Live (South Africa)) Kenya

22 January 2019: Sugar and tobacco Italy products top the list of illegal and counterfeit goods that were seized by the Anti-Counterfeit 23 January 2019: A new rail freight terminal Agency (ACA) and a multi-agency team that has been opened in the North Italian city conducted an operation to rid the country of fake goods. The of Marzaglia, close to Modena. Italian ACA chief executive officer, says the rapid response initiative infrastructure manager Rete Ferroviaria Italiana operation carried out between 10 May – 30 June 2018 seized (RFI) opened the facility in the first week of January. The first substandard or illegal sugar worth Sh5.38 billion. The ACA, train arrived on 7 January, originating from Limburg (Southern working with the multi-agency team seized illegal tobacco and Netherlands, close to Germany) and carrying clay. The station cigarettes worth Sh828 million. Illegal or substandard agriculture has three railway tracks and is focused on traditional rail freight and livestock products hit 340.8 million in value. Also netted services. RFI will add another four tracks in December 2019, were electrical goods and cables (Sh301.2 million), alcoholic connecting the station with the airport of Marzaglia-Modena. In beverages (Sh270.8 million), substandard roofing iron sheets this way, it is set to develop an intermodal hub. The investment (Sh182.7 million), textiles (Sh131 million), illegal leather (Sh37 will total €90 million. million), foodstuff and bottled water (Sh16.2 million), tyres Read more: RailFreight.com and spares (sh10.7 million, adulterated/counterfeit petroleum products (Sh1.6 million) and beauty and cosmetic products (Sh0.484 million). The ACA CEO said the counterfeits ring targets the fast moving consumer products because of the volume and the money involved. Read more: Business Daily Africa

sensitech.com SCIC Global Intelligence Note 25 January 2019 3 APAC North & South America

India 24 January 2019: India’s logistics sector is Brazil expanding in tandem with overall economic growth in the country. Given its predicted ascent 24 January 2019: The federal highway police to the second largest economy in the world by stopped three actions of burglars on the BR-116 2050, India is in considerable need of a strong highway in Curitiba area. A truck driver was parked logistics sector. A large part of India’s economic growth stems to sleep in the vicinity of a gas station, and at about from an expanding consumer market, which requires the smooth 2:15 am he was approached by armed bandits. The transition of goods from the production to the consumption truck, carrying a load of miscellaneous goods, was taken away. stage. A strong logistics sector is essential, and India appears In another attempt, the armed bandits forced a driver to stop; to be on its way to developing the same. The sector is currently he was carrying food. Part of the cargo was taken by thieves worth as much as $160 billion, a figure that is expected to who were in a car. Later, a truck laden with furniture was also increase to as high as $215 billion over the next two years. approached, but the driver did not stop. He managed to escape Read more: Consultancy (India) and stopped at a highway police station. Read more: Bem Paraná (Brazil)

23 January 2019: Ten armed men invaded a Australia warehouse in Cachoeirinha, Porto Alegre. Employees who were on site were restrained while 22 January 2019: In August 2018, police criminals removed around 2,000 cell phones valued investigators searched two homes in greater at $3 million. Police identified two sites in Gravataí Sydney, seizing 4000 tins of baby formula, that were used as hiding places by the gang; they arrested the large quantities of vitamins, and Manuka criminals and recovered the load. Among the objects found by honey. The police arrested an individual the police were four jammers. on Saturday as part of what they have called an “expansive” Read more: Gaz (Brazil) network involved in the theft of these non-luxury items, which they allege are being sold in China for enormous profits. More 21 January 2019: An attack on two Cash-in-Transit and more in Australia, seemingly every day Pharmaceutical items vehicles occurred at the Tamoios Highway (SP-99), are being identified as lucrative, targeted by criminals who resell near to the access to road connecting Paraibuna them for massive profits. Recent attention has focused on baby to Salesópolis. The bandits used heavy guns and formula, which major retailers last year took to locking away dynamites to blow up the vehicle. One of the vehicles was set behind counters and controlling with customer purchase limits. on fire, along with another car near the scene of attack. The But Manuka honey has become a new major target in the past gang took the money and two security guards were injured by 12 months, with retailers also being forced to lock the popular shrapnel. The highway was shut down in both directions for medicinal product behind shelves. Capilano Honey’s Tanya seven hours. Watt says the upswing in popularity from consumers is due to Read more: Radar Litoral (Brazil) the publication of clinical studies proving the effectiveness of Manuka when treating serious stomach ailments caused by the helicobacter pylori bacterium. Chinese doctors now recommend people use Manuka to treat their stomach issues. Read more: News.com (Australia)

sensitech.com SCIC Global Intelligence Note 25 January 2019 4 21 January 2019: Police found about 70 tons 20 January 2018: When operators of the of potassium nitrate, a substance used to make Command & Control Center were alerted of a fertilizer, in a shed in Santos. The suspicion is cargo theft in Cuautitlán, State of Mexico, local that the load has been stolen and stored for later authorities immediately began tracking the stolen resale. vehicle via its GPS device. In a matter of minutes, Read more: Globo G1 (Brazil) the unit was located at a well-known market in the Iztapalapa borough of Mexico City. When police arrived at the scene, they

14 January 2019: According to the president of found and arrested the three men aboard the trailer. Abac (Brazilian Association of Cabotage Ship- owners), with the truck drivers’ strike in May 19 January 2018: Following up on a cargo theft, 2018, the use of cabotage increased, not only Guanajuato Federal Police were able to locate by current companies expanding their transport volumes, but the vehicle in question along with nine other also by those who previously did not use cabotage. In the first stolen cargo units at a local car wash. The unit half of 2018, before the strike unfolded, the volumes transported that originated the search was found still loaded by cabotage increased 13.5% compared to 2017. But after with twenty-four tons of cement valued at approximately MXN the strike, the annual pace of expansion rose to 15.6% by $200,000. Of the other nine vehicles, only one contained cargo; September, according to Abac. 100 sacks of lime with an estimated value of MXN $15,000. Read more: Estadão (Brazil)

U.S. & Canada Mexico 23 January 2019: Just in time for the Super 22 January 2019: Four men were arrested in Bowl—Los Angeles police recovered about Sanctorum, Tlaxcala after an attempted truck fifty televisions in South Los Angeles. An Hijacking on Federal Highway M40D, also known LAPD captain tweeted out that the stacks as Arco Norte. Upon receiving the theft report, of televisions were swiped from Compton over the weekend. Federal Police Officers located the driver, who Detectives recovered the electronics in the 6300 block of was still in custody of one of the criminals. He immediately Vermont Avenue, near 64th Street in South L.A. informed the authorities that three other men had taken his Read more: KABC-TV (Los Angeles, CA) wife aboard a pick-up truck in order to further pressure him into giving up his vehicle. Moments later, Police Officers located 22 January 2019: A freight train carrying grain the pick-up with all three men and the driver’s wife inside. The has derailed at a rail crossing just north of woman was released unharmed while the three criminals were Saskatoon. The Saskatoon Fire Department arrested. says the derailment happened at about 9:30 a.m. Tuesday when thirty out of the fifty-two rail cars left the 22 January 2019: The driver of a trailer tracks near Warman. The fire department says one locomotive transporting soy was found wounded in was on fire and leaking fuel when firefighters arrived on scene. Yehualtepec, Puebla after a group of armed Read more: The Globe and Mail (Toronto, ON) men in a sedan pulled up beside the truck and

began firing their weapons. Upon intercepting the 18 January 2019: Employee furloughs have forced vehicle, the criminals abandoned the wounded driver roadside the National Transportation Safety Board to suspend and took off in the trailer. Police are still searching for the vehicle practically all accident investigations and continue and cargo. to prevent officials from even determining whether future probes of specific crashes may be warranted, according to information released by the agency. Read more: The Wall Street Journal sensitech.com SCIC Global Intelligence Note 25 January 2019 5 18 January 2019: Officials say Kearny (N.J.) 15 January 2019: After dozens of supply chain detectives applied for an arrest warrant for a data breaches and growing fears that the Chinese man charged with being the alleged leader government is compromising technology supply of a Cargo Theft Network [N.J.S.A. 2C:20- chains, senators proposed a new “Office of Critical 2.4a(1)] and six counts of second-degree Technology and Security” to coordinate technology Theft of Movable Property [N.J.S.A. 2C:20-3a]. Specifically, supply chain security efforts. the man was charged with managing a scheme to steal seven Read more: Government Technology tractor-trailers holding cargo valued at nearly $4 million. The man was arrested by Port Wentworth (Georgia) police at the home of 15 January 2019: While cyberattacks his fiancé. have taken place in a variety of forms since Read more: RLS Media (New Jersey) the 1990s, the threat has become more palpable and acute in the past decade with 18 January 2019: The FBI and Aurora (Colorado) businesses increasingly relying on networked Police Department are investigating a report of systems and the internet of things (IoT), especially in the logistics high-end electronics that were stolen off the back and supply chain space. In a recent survey, 66% of IT decision of a semi-truck traveling through northeastern makers said their companies had suffered a supply chain Colorado. cyberattack in the past 12 months, bringing to light a threat that Read more: KUSA-TV (Denver, CO) many considered an abstract concept. Read more: Spend Matters

15 January 2019: Shippers and freight-handlers say U.S. agencies that oversee the flow of goods are starting to cut back services and working hours, raising concerns that delays will spread across supply chains if the partial government shutdown continues much longer. Read more: The Wall Street Journal

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