Global Cargo Theft SUPPLY CHAIN Risk Assessment INTELLIGENCE CENTER 2019

SUPPLY CHAIN INTELLIGENCE CENTER

LOW MODERATE ELEVATED HIGH SEVERE

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The United K North & South America EMEA APAC sensitech.com Greetings from the SensiGuard ® Table of Contents Supply Chain Intelligence Center (SCIC). North & South America It is that time of year again, and United States...... 3 we are excited to present the Canada...... 6 latest publication of our Global Cargo Theft Risk Assessment Argentina...... 9 (GTA). We are proud of the Bolivia...... 12 overwhelmingly positive response Brazil...... 15 we have received from the Chile...... 18 industry regarding this report. Each year, our goal is to add new Colombia...... 21 countries and additional data to help our clients and the industry proactively mitigate the risks to their supply chains. Guatemala...... 24 Mexico...... 27 We are pleased to bring you the 2019 Global Cargo Theft Panama...... 30 Risk Assessment. Our goal is to provide you with a high-level Paraguay...... 33 overview of global issues impacting supply chains around the world. This report is designed to outline the risk of cargo Peru...... 36 theft on a global level, highlighting significant countries in the Puerto Rico...... 39 global supply chain and to assist industry decision makers in Venezuela...... 42 determining their supply chain security needs. EMEA Happy Reading! Belgium...... 45 France...... 48 Germany...... 51 Italy...... 54 The Netherlands...... 57 Russia...... 60 South Africa...... 63 Scott Martino Spain...... 66 Director, Global Intelligence Sensitech Inc. Sweden...... 69 United Kingdom...... 72 APAC China...... 75 India...... 78

sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 2 North & South America United States

SUPPLY CHAIN INTELLIGENCE CENTER

LOW MODERATE ELEVATED HIGH SEVERE

AT A GLANCE Capital Washington, D.C. The United States (U.S.) covers 3.8 million square miles of the North Area American continent, stretching from the Atlantic Ocean in the east to 3.8 million mi.2 the Pacific Ocean in the west, and bordered by Canada on the north Population and Mexico on the south. It has numerous land ports of entry along 327.2 million the southern border with Mexico and the northern border with Canada, RISK LEVEL which make for a large and diverse supply chain infrastructure. HIGH

GDP (PPP) Inflation Rate Unemployment Rate Balance of Trade $21.41T 1.7% 3.7% -$53.989M

Source: Trading Economics sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 3 North & South America United States

Highways Seaports The highway system in the United States The United States has 926 coastal, Great consists of over 164,000 mi. of roadways Lakes, and inland ports which can handle and is the largest highway system in the 82,000 vessels and $4.6 trillion in economic world. activity each year.

Highway Description Length Direction Seaport State Coast Annual (mi) Capacity (TEUs) I-10 Los Angeles, CA to 2,416 E/W Los Angeles CA West 9.3 million Jacksonville, FL Long Beach CA West 4.9 million I-35 Laredo, TX to Duluth, MN 1,559 N/S New York & New Jersey NY/NJ East 4.5 million I-40 Barstow, CA to Wilmington, NC 2,477 E/W Savannah GA East 4 million I-90 Seattle, WA to Boston, MA 3,052 E/W Seattle WA West 2.1 million I-95 Miami, FL to Houlton, ME 1,835 N/S

Railroads Railway Region Border Seaport The rail system in the U.S. Connections Connections spans over 140,000 mi., Union Pacific Western U.S. 2 6 and carries over two billion BNSF Western & Central U.S. 5 8 tons of freight each year. CSX Eastern U.S. 3 17 Norfolk Southern Eastern U.S. 3 24

CARGO THEFT TRENDS Cargo theft is centralized around the intersection of major seaports, rail depots and interstate highways, such as in Southern California, Atlanta, Florida, East Texas, Chicago, and New England.

High Risk States Modus Operandi

State % Total Thefts Thefts are primarily perpetrated when a shipment is stationary and California 22% unattended and tend to target high value merchandise or non-serialized Texas 15% products for ease of liquidation. Typically the entire tractor and/or trailer are stolen while unattended at a truck stop or rest area. Pilferages, which Florida 9% have been increasing at a record pace, have been recorded outside of Illinois 9% destination facilities and can be indicators of a larger scale theft to come. Georgia 8%

Resources Weapons Participants Location High Risk Products Technology; N/A 2-4 Males Truck Stops; Rest Areas; Inside Information Unattended Product Category % Total Thefts Electronics 17% Food & Drinks 17% Home & Garden 16% Miscellaneous 12% Building & Industrial 8% sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 4 North & South America United States

PERIPHERAL RISKS Overall Risk Rating: 4

CORRUPTION & ORGANIZED CRIME While organized crime dominates the cargo theft landscape, 3 corruption stemming from these organizations is minimal.

WEATHER & NATURAL DISASTERS The U.S.’s varied geography and climate make for a wide variety of weather and natural disaster events, and less severe events are 4 having more severe impacts.

WAR & TERRORISM There is no war and little to no large scale terrorism events that 1 disrupt the flow of cargo.

LABOR DISPUTES While uncommon, labor disputes at key freight hubs such as sea and airports have caused disruption in the past and have the 2 ability to do so in the future.

CARGO THEFT While not as prolific as in other areas of the world, the sophistication with which the U.S. cargo thief operates raises the 4 risk level.

CIVIL UNREST While protests and demonstrations are frequent, they rarely block 2 the flow of cargo for any extended time.

INFRASTRUCTURE Despite some areas of disrepair, the U.S. has the largest and most 2 expansive national highway system in the world.

GENERAL OVERVIEW Over the last twelve months, the SCIC has observed the continued increase of thefts of Electronics and Mixed Retail loads as well as several instances of Pilferage breaking records for both volume and value. Additionally, the re-emergence of advanced, atypical theft types such as Fictitious Pickup is on the rise again. As newer cargo thieves are trained in these advanced methods, the SCIC expects these increases to continue.

If the current U.S.-China trade war continues on its present path, the U.S. may see a shift in cargo volume to the east coast ports from Southern California. If so, cargo theft volumes will likely follow the density of cargo traffic.

sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 5 North & South America Canada

SUPPLY CHAIN INTELLIGENCE CENTER

LOW MODERATE ELEVATED HIGH SEVERE

AT A GLANCE Capital Ottawa, ON Canada covers 3.9 million square miles to the north of the United Area States, with whom it shares its only land border. It is bordered on the 3.9 million mi.2 west by the Pacific Ocean and on the east by the Atlantic Ocean. Its Population physical geography limits the international flow of cargo to a few major 37.1 million seaports and land border crossings with the United States. RISK LEVEL HIGH

GDP (PPP) Inflation Rate Unemployment Rate Balance of Trade $1.901T 1.9% 5.7% -$1124M CAN

Source: Trading Economics sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 6 North & South America Canada

Highways Seaports The highway system in Canada, maintained The eighteen ports that make up the National primarily by the provinces, consists of over Ports System in Canada handle more than 38,021 km of roadways, including the Trans- 310 million tons, valued at over $400 million Canada Highway, which travels through all ten Canadian each year. provinces. The federal government has little authority over the maintenance or expansion of roads and highways as this is typically handled by the province or territory Seaport Province Coast Annual Capacity (TEUs) transportation department. Montreal Quebec East 9.3 million Highway Description Length Direction Toronto Ontario East 4.9 million (km) Metro Vancouver British West 4.5 million ON-401 Windsor, ON to Quebec border 823 N/S Columbia TCH Victoria, BC to St John, NL 7,821 W/E

Railroads Railway Region Border Seaport The rail system in Canada Connections Connections spans over 49,422 km, Canadian National National & Mississippi River 5 9 and is primarily used to Canadian Pacific National 5 2 transport freight due to the seasonal conditions that can make highway travel dangerous.

CARGO THEFT TRENDS Cargo theft is clustered along the ON-401 highway from the U.S. border to Montreal, with the greater Toronto area being the riskiest area in the country for cargo theft.

High Risk Provinces Modus Operandi

State % Total Thefts Thieves in Canada operate in a very similar manner to those in the U.S., Ontario 74% with advanced use of online resources and fictitious schemes, as well Quebec 17% as the use of inside information. Additionally, seaports and surrounding yards are of particular interest to thieves, and there are reports that non- Data Range: Q3-2018 to Q2-2019 cargo oriented organized crime groups have infiltrated the ports for money laundering and drug trafficking.

Resources Weapons Participants Location High Risk Products Inside Information; N/A 2-4 Males Truck Stops; Criminal Network; Major Seaports; Product Category % Total Thefts Technology Unattended Food & Drinks 46% Miscellaneous 9% Metals 9%

sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 7 North & South America Canada

PERIPHERAL RISKS Overall Risk Rating: 4

CORRUPTION & ORGANIZED CRIME Traditional organized crime plays a large role in the cargo theft 3 landscape, but corruption is minimal.

WEATHER & NATURAL DISASTERS While natural disasters are not frequent, seasonal weather patterns are extremely disruptive to the flow of goods in Canada 4 and can cause significant delays if not properly planned for.

WAR & TERRORISM There is no war and little to no large scale terrorism events that 1 disrupt the flow of cargo.

LABOR DISPUTES Labor disputes that cause delays at freight hubs are rare in 1 Canada

CARGO THEFT Cargo theft sophistication and advanced methods match what is 4 seen in the U.S.

CIVIL UNREST Protests and demonstrations are typically peaceful and roadblocks 2 are not the preferred method of protest.

INFRASTRUCTURE While the national highways system spans the country, the remote nature of much of the country means that infrastructure support 3 and law enforcement support can be lacking in areas.

GENERAL OVERVIEW Quantitative data collection for cargo thefts in Canada remains a challenge. However, through analysis of available data and detailed incident reports, it is clear that the organized cargo thief in Canada is just as sophisticated and prolific as those in the United States, and practice the same risk versus reward calculations when targeting cargo.

Without additional cargo theft specific legislation and penalties, advanced theft types and product targeting will likely increase in Canada. Fictitious Pickups and large scale Pilferages will likely become more frequent in the coming year.

sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 8 North & South America Argentina

SUPPLY CHAIN INTELLIGENCE CENTER

AT A GLANCE As the second largest country in South America, Argentina shares borders with five other countries, and has a South Atlantic seacoast of over 5,000 km.

Capital Buenos Aires Area 1,056,641 mi.2 Population 44.9 million RISK LEVEL

HIGH LOW MODERATE ELEVATED HIGH SEVERE

GDP (PPP) Inflation Rate Unemployment Rate Balance of Trade $920B 43.7% 10.6% $1.168B

Source: Trading Economics sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 9 North & South America Argentina

Highways Seaports The roadway network in Argentina is 90% of Argentina’s exterior commerce is comprised of over 600,000 km, of which conducted through its numerous seaports. 37,000 km belong to the national highways that connect the capital, Buenos Aires, with other major cities. Seaport Province Coast Traffic Jan-May Highway Description Length Direction 2018 (TEUs) (km) Bahía Blanca Buenos Aires Atlantic 5.7 million RN-1 Au Dr. Ricardo Balbín 50 NE/SE Quequén Buenos Aires Atlantic 4.4 million RN-3 Buenos Aires-Ushuaia 3,045 NE/S Buenos Aires Buenos Aires Atlantic 2.8 million RN-9 Pan-American National Route 1,967 CE/NW

Railroads Railway Length Region Border Seaport The country boasts the largest (km) Connections Connections roadway network in Latin America. Belgrano 4,897 North 2 2 The freight division in particular San Martín 2,899 Central 0 2 connects 13 of the 27 provinces, and reaches all Urquiza 1,486 North East 4 3 neighboring countries, but is currently only being used to transport 5% of the cargo moving through the country. There are plans to revamp the more than 45,000 kilometers of railway in existence in order to lower freight costs.

CARGO THEFT TRENDS Public crime statistics do not separate cargo theft into its own category, making it difficult to obtain concrete figures; however, the Inter-company Board of Truck Piracy reported 1,538 cargo thefts from August 2018 to August 2019, from which 52% occurred in the province of Buenos Aires, and 24% in the city.

They reported that 57% of cargo thefts are committed with daylight between 04:00 a.m. to 12:00 p.m., with box trucks as the main target (80%). Currently, unlike previous years, food & candies has become the most stolen product with 42% of incidences, an increase of 7% over the last two years.

Modus Operandi Cargo theft criminals are referred to as ‘Asphalt Pirates’, who most often work in pairs, targeting smaller cargo units between the hours of 04:00 a.m. and midday.

Resources Weapons Participants Location GPS Jammers Hand Guns & Rifles 2 Males First/Last-Mile Courier while loading/unloading

sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 10 North & South America Argentina

PERIPHERAL RISKS Overall Risk Rating: 4

CORRUPTION & ORGANIZED CRIME Corruption Index score of 39 according to Trading Economics 4 (0-Highly Corrupt to 100-Very Clean). Drug trade-related violence.

WEATHER & NATURAL DISASTERS 2 Occasional flooding and heavy rains along the eastern sea coast.

WAR & TERRORISM Moderate threat, with a resurgence in the use of small explosive 2 devices in the last year, particularly in Buenos Aires.

LABOR DISPUTES Labor unions and groups of unemployed or underemployed are 3 prone to protest in major cities.

CARGO THEFT The criminal M.O. has presented temporary and target displacements, changing operative times from night to daylight, and targeting high value cargo such as electronics to food & 4 candies.

CIVIL UNREST Frequent protests in major cities related to economic and political issues. Road blocks at highway access points are the most 4 frequently used tactic employed by social activist groups.

INFRASTRUCTURE A large percentage of roads are unpaved, and there is little 3 adherence to/enforcement of traffic laws.

GENERAL OVERVIEW Projects to improve the country’s infrastructure over 2019 to 2021 have the potential to make cargo transport through Argentina more efficient and affordable.

However, cargo theft and organized crime continue to pose a threat to supply chains. The country’s location makes it a prime transnational shipping point for drugs from neighboring countries, and while authorities are taking steps to target cargo theft, particularly in Buenos Aires, criminals often act on inside information, targeting specific shipments to fulfill specific orders.

sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 11 North & South America Bolivia

SUPPLY CHAIN INTELLIGENCE CENTER

LOW MODERATE ELEVATED HIGH SEVERE

AT A GLANCE Capital La Paz Bolivia is a constitutional republic in the western-central portion of Area South America. 682,773 mi.2 Population 11.3 million RISK LEVEL HIGH

GDP (PPP) Inflation Rate Unemployment Rate Balance of Trade $40.29B 2.28% 3.4% -$1.152B

Source: Trading Economics sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 12 North & South America Bolivia

Highways Seaports The roadway network in Bolivia consists of Bolivia is a landlocked country with maritime 70,000 km, of roads of which about 10,000 port agreements with Peru and Chile in the km are paved. Mainly the cities of the central Pacific Ocean; and with Argentina, Brazil and axis and some other important cities are Paraguay in the Atlantic Ocean through the integrated by asphalted road structures. Paraguay-Paraná waterway.

Highway Description Length Direction (km) HWY-4 Paso Chumgara-Puerto Suárez 1,635 NW/SE HWY-1 Desguesadero-Aguas Blancas 1,160 NW/S HWY-9 Yacuíba-Marbán 888 S/N

Railroads Railway Region Border Seaport The railroad system is Connections Connections divided into two networks: Oriental West/Central, South West, & 3 0 the Oriental Network (FCO) North West with 1,244 km that connect Western South/Central, & South East. 2 0 with Brazil and Argentina, and the Western Network (FCA) with 2,318 km in length that connect with Chile and Argentina.

CARGO THEFT TRENDS Cargo theft is most prevalent in the west and central region, in La Paz, Cochabamba and Santa Cruz departments. Among the higher risk highways are HWY-4 and HWY-3.

Modus Operandi Most of the thefts occur In-Transit, by Hijacking by groups of armed men. In some cases the criminals pretend to be police officers. They also take advantage when vehicles are parked.

Resources Weapons Participants Location Fake Police; Uniforms Knives; Hand Guns 4–6 Males In-Transit

sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 13 North & South America Bolivia

PERIPHERAL RISKS Overall Risk Rating: 4

CORRUPTION & ORGANIZED CRIME According to Transparency International, Bolivia is the 132th least corrupt nation out of 175 countries. Insight Crime points out the presence of organized crime in the country as it is the air bridge 5 for Peru cocaine and the third world producer of cocaine.

WEATHER & NATURAL DISASTERS Excessive rains can cause floods and affect roads. Heavy rains caused flooding in January and February 2018. Bolivia suffered 4 frequent medium earthquakes.

WAR & TERRORISM According to Trading Economics Terrorism Index, Bolivia’s 2 terrorism threat decreased to 0 in 2017 from 0.02 in 2016.

LABOR DISPUTES 3 Protests can affect streets and roads.

CARGO THEFT Cargo theft on roadways remains stable. The main products stolen 3 are grains (specifically soybeans), electronics and clothing.

CIVIL UNREST Protests and demonstrations are frequent and they can eventually 3 end up in violence.

INFRASTRUCTURE 85% of highways are made of gravel or sand, only the cities of the central axis: La Paz, Cochabamba, Santa Cruz, and some other 5 important cities are integrated by paved roads.

GENERAL OVERVIEW ECLAC (Economic Commission for Latin America and the Caribbean), projected for 4% growth in Bolivia’s GDP for 2019, indicating that the country will have the highest economic growth in Latin America this year. Nonetheless, the IMF points that the large-scale public investment in recent years that aimed to fill infrastructure gaps and increase productivity during periods of lower hydrocarbon revenues contributed to increasing fiscal and external current account deficits. If this scenario continues the sustainability of public debt could be undermined.

sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 14 North & South America Brazil

SUPPLY CHAIN INTELLIGENCE CENTER

LOW MODERATE ELEVATED HIGH SEVERE

AT A GLANCE Capital Brasília Brazil is a federal republic in eastern South America, bordering the Area Atlantic Ocean. It is the fifth largest country by area in the world, with 8,515,770 mi.2 a vast Atlantic coastline. Brazil is a supplier of important raw materials Population and buys many industrialized products for its consumption. 208.5 million RISK LEVEL SEVERE

GDP (PPP) Inflation Rate Unemployment Rate Balance of Trade $1.868T 3.75% 12.3% $58.3B

Source: Trading Economics sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 15 North & South America Brazil

Highways Seaports Despite being responsible for 60% of cargo The most important ports are on the Atlantic transportation in the country, the density of coast. the road network is still small when compared with other countries of similar dimensions.

Highway Description Length Direction Seaport Dept. River Annual (km) Capacity (TEUs) BR-116 Jaguarão – Fortaleza 4513 S/NE Santos São Paulo Atlantic Ocean 118.5 million BR-101 São José do Norte – Touros 4772 S/NE Itaguaí Rio de Janeiro Atlantic 52.9 million BR-364 Limeira – Rodrigues Alves 4324 SE/N Paranaguá Paraná Atlantic 49.4 million BR-381 São Paulo – São Mateus 1220 SE/SE BR-040 Rio de Janeiro - Brasília 1178 SE/W

Railroads Railway Region Border Seaport The railway system spans over Connections Connections 29,000 km of the country, connecting EF-315 North-Northeast 0 1 mainly areas of mineral extraction and EF-262 Central - East 0 1 agricultural production to sea and land Rede MRS Central - East 0 4 ports. The extension is considered small comparing to the size of country and the modal is only responsible for 20% of the country’s cargo transportation.

CARGO THEFT TRENDS Cargo theft is most prevalent in the southeast region, with the states of São Paulo and Rio de Janeiro accounting for more than 80% of all thefts recorded in the country. They are more common in urban areas, with small gangs, with loads up to USD $25,000 taken. There are also very well-planned actions with large gangs, driver kidnappings, and high losses.

High Risk States Modus Operandi

State % Total Thefts Most thefts occur by Hijacking, while the load is In-Transit or being Rio de Janeiro 41% unloaded at its destination. Drivers are approached by armed men, and São Paulo 39% the truck is taken or the drivers are forced to follow them to a deserted place where the cargo is transshipped.

Resources Weapons Participants Location High Risk Products GPS Jammers; Rifles and 1–3 Males In-Transit or Police Radios, Hand Guns Final Destination Product Category % Total Thefts Fake Police Cars Miscellaneous 42% Food & Drink 18% Tobacco 8% Electronics 7%

sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 16 North & South America Brazil

PERIPHERAL RISKS Overall Risk Rating: 5

CORRUPTION & ORGANIZED CRIME Highly susceptible to corruption at all government levels. Strong 5 presence of organized crime throughout the country.

WEATHER & NATURAL DISASTERS 1 Excessive rains can cause floods in summer.

WAR & TERRORISM 1 Little to no incidence.

LABOR DISPUTES Occasional strikes by labor unions. These events eventually affect traffic. Particularly in 2018, the country saw a major protest by truckers that stopped the supply of goods in the country, with a 3 major impact on logistics and economy.

CARGO THEFT There was a 12% reduction in cargo theft last year, both on 5 roadways and urban areas.

CIVIL UNREST 3 Eventual protests block important avenues and roads.

INFRASTRUCTURE Extensive network throughout, although roadways lack 4 maintenance and surveillance in some areas.

GENERAL OVERVIEW The year 2018 was marked by a slow recovery of the Brazilian economy and still high unemployment. Although inflation remained under control, gasoline and diesel prices soared—one of the factors driving the truckers’ strike, which paralyzed the country for eleven days at the end of May, affecting production, consumption and 2018 GDP. The slight improvement in the economy was accompanied by a reduction in crime rates, including in cargo theft.

sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 17 North & South America Chile

SUPPLY CHAIN INTELLIGENCE CENTER

AT A GLANCE Chile is a South American country occupying a long, narrow strip of land between the Andes to the east and the Pacific Ocean to the west.

Capital Santiago Area 291,930 mi.2 Santiago Metropolitan Region Population 18.2 million RISK LEVEL ELEVATED

GDP (PPP) Inflation Rate $506B 2.34%

Unemployment Rate Balance of Trade 7.2% $143M

Source: Trading Economics LOW MODERATE ELEVATED HIGH SEVERE sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 18 North & South America Chile

Highways Seaports Made up of more than 82,000 km, Chile’s Along its 6,435 km of coastline, Chile has a extensive roadway network spans the entire total of 26 sea ports through which 80% of country. its exterior commerce is conducted.

Highway Description Length Direction Seaport Region Coast Annual (km) Capacity (TEUs) RN-5 Pan-American Highway 3,363 N/S San Antonio Valparaíso Pacific 17.9 million RN-7 Austral Highway 1,240 N/S Valparaíso Valparaíso Pacific 11.8 million RN-68 Valparaíso-Santiago 110 E/W Antofagasta Antofagasta Pacific 2.5 million RN-78 Autopista del Sol 133 E/W

Railroads With only 6,782 km of railways, the rail system currently plays a minimal role in cargo transport, however, there are plans to develop railway corridors for the country’s main ports in the upcoming years.

CARGO THEFT TRENDS The Cargo Transport Confederation reports a 7% increase in cargo theft from 2018 vs 2017, affirming that 80% of the incidence is concentrated in the Metropolitan Region, where on average are daily committed three cargo thefts with load value that fluctuate between 70 and 100 million Chilean pesos.

78% of cargo thefts in Chile are concentrated in an area known by truck drivers as the “Bermuda Triangle”, which includes the routes of San Antonio to Santiago, Valparaíso to Santiago, and Américo Vespucio in the Metropolitan Region, from which transits most of the merchandise coming from the Ports of Valparaíso to the main DCs and Logistics Parks in the communes of Quilcura and Lampa at the north, Padahuel and Maipú at the west, and San Bernardo in the south.

Modus Operandi Criminals have been known to use drones to monitor trucks as they are being loaded within ports, allowing them to identify and track the vehicles they will be targeting. They operate in large groups of 15-20 armed males, intercepting cargo units In-Transit.

Resources Weapons Participants Location GPS Jammers; Drones; 1–2 Vehicles Hand Guns 15-20 Males In-Transit

sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 19 North & South America Chile

PERIPHERAL RISKS Overall Risk Rating: 3

CORRUPTION & ORGANIZED CRIME Corruption Index score of 67 according to Trading Economics (0-Highly Corrupt to 100-Very Clean). Little presence of local 2 organized crime.

WEATHER & NATURAL DISASTERS Highly susceptible to extreme natural events such as earthquakes, 4 volcanic eruptions, and tsunamis.

WAR & TERRORISM Small-scale domestic terrorist activity, aimed primarily at 3 damaging buildings to make political statements.

LABOR DISPUTES Strong laws protecting worker and union rights make the country 3 susceptible to labor strikes.

CARGO THEFT Low incidence, mostly prevalent near the capital, Santiago, and 2 surrounding port cities.

CIVIL UNREST Frequent protests and political gatherings in major cities like Santiago, specifically around dates of significance (September 11, 4 March 9, May 1).

INFRASTRUCTURE 1 Road conditions among the best in LATAM.

GENERAL OVERVIEW Chile’s stable democracy, exceptional roadway conditions, and extensive sea coast offer an attractive setting for supply chain networks.

With relatively low incidence of cargo theft as compared to other Latin American countries, areas of concern may include a growing presence of criminal organizations from neighboring countries, as well as its susceptibility to protests, labor strikes, and political demonstrations, which have the potential to interrupt the flow of traffic.

sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 20 North & South America Colombia

SUPPLY CHAIN INTELLIGENCE CENTER

LOW MODERATE ELEVATED HIGH SEVERE

AT A GLANCE Capital Bogotá Colombia is a constitutional republic in the northwest portion of South Area America. 709,600 mi.2 Population 49.8 million RISK LEVEL HIGH

GDP (PPP) Inflation Rate Unemployment Rate Balance of Trade $791.9B 3.42% 10.8% -$1.3B

Source: Trading Economics sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 21 North & South America Colombia

Highways Seaports The roadway network in Colombia consists Considered the gateway to South America as of 206,727 km of roads, including National its strategical location has become a must for Primary Network (great highways), National those vessels that need to reach the nations Secondary Network (department’s roads) and that are located in the East and West of the National Tertiary Network (dirt roads). country.

Highway Description Length Direction Seaport Department Coast Annual (km) Capacity (TEUs) HWY-25 Barranquilla-Ipiales 1,740 NE/SW Bolívar La Guajira Atlantic 20 million HWY-45 Cienega-San Miguel 1,630 NE/SW Buenaventura Valle del Cauca Pacific 16 million HWY-90 Paraguachón-Moñitos 753 NE/NW HWY-40 Buenaventura-Puerto Carreño 1,570 W/E

Railroads Railway Region Border Seaport The railroad system is Connections Connections divided into two networks: Atlantic Central/North 0 0 the Atlantic Network with Pacific West/Central 0 0 1,493 km that connects Bogota with Santa Marta and the Pacific Network with 498 km in length that connects Buenaventura port with Cali.

CARGO THEFT TRENDS Cargo theft is most prevalent in the central region and ports, with the Cundinamarca, Valle de Cauca, Cauca, Antioquia, and Arauca departments accounting for 63% of all registered thefts in the nation.

High Risk Departments Modus Operandi

Department % Total Thefts Criminals puncture the tires of the cargo units or pretend to have a broken Cundinamarca 23% down vehicle to steal cargo, which is loaded in three small trucks that Valle de Cauca 11% arrived at the site with the help of a motorcycle, while others distract the driver. Cauca 11% Antioquia 10% Arauca 8%

Resources Weapons Participants Location High Risk Highways Sharp Objects; Clamps Hand Guns 25-28 Men/ In-Transit 1-2 Women Highway % Total Thefts HWY-25 32% HWY-45 21% HWY-50 9% HWY-40 7% HWY-62 6% sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 22 North & South America Colombia

PERIPHERAL RISKS Overall Risk Rating: 4

CORRUPTION & ORGANIZED CRIME Corruption Index score of 32 according to Trading Economics (0-Highly Corrupt to 100-Very Clean). High presence of organized crime in Colombia with approx. 2,000 structures, from which 32 5 are the main generators of urban violence and transnational drug trafficking networks. WEATHER & NATURAL DISASTERS Last year, Colombia suffered the overflow of three rivers, as well as an avalanche that left significant damage. The last 50 4 earthquakes have been medium.

WAR & TERRORISM According to Trading Economics, the Terrorism Index in Colombia 4 increased to 5.61 in 2017 from 5.60 in 2016.

LABOR DISPUTES 3 Strikes due to salary increase and against changes in Labor Code.

CARGO THEFT Although cargo theft on roadways remains stable, it has recently been detected that some drivers form alliances with criminal 4 organizations to facilitate cargo unit theft.

CIVIL UNREST A common form of protest in Colombia is the closure of the main 3 access roads to Bogota, Cartagena and Sucre.

INFRASTRUCTURE During Q1-2019, the investment in new roads increase by 6.5% compared to last year. This investment is focus on the construction of concrete roads, streets, paths, bridges, elevated 5 roads, tunnels and subways.

GENERAL OVERVIEW The economic expectation in Colombia is that GDP will grow less than 3% in 2019 as was expected due to the reduction in oil prices and a downward trend in the dynamic private economy.

Columbia has been affected by the commercial war between China and the United States, as they are Columbia’s two principal commercial partners with the United States in the first position and China in the second.

sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 23 North & South America Guatemala

SUPPLY CHAIN INTELLIGENCE CENTER

LOW MODERATE ELEVATED HIGH SEVERE

AT A GLANCE Capital Guatemala City Guatemala is Central America’s largest country and economy. With Area Mexico at its north and western borders, access to both the Atlantic 42,040 mi.2 and Pacific oceans, and Honduras and El Salvador to the southeast, Population its geographic location creates great potential for trade partnerships. 17.6 million RISK LEVEL ELEVATED

GDP (PPP) Inflation Rate Unemployment Rate Balance of Trade $145.2B 4.6% 2.73% -$780M

Source: Trading Economics sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 24 North & South America Guatemala

Highways Seaports Only 45% of Guatemala’s 16,860 km roadway Guatemala has five main seaports, its most network is paved. Much of the developed important being Santo Tomás de Castilla, infrastructure is concentrated in major cities, which sits on its Atlantic Coast and moves with connections to other regions of the country remaining more than 8 million tons of cargo annually. predominately unpaved and in poor condition. Seaport Department Coast Cargo Volume Jan- June 2018 (TEUs) Highway Description Length Direction (km) Santo Tomás Izabal Atlantic 4.2 million CA-1 Pan-American Highway 691 NW/SE Barrios Izabal Atlantic 2.3 million CA-2 Pacific Highway 339 NW/SE Quetzal Escuintla Pacific 6.5 million CA-9 Atlantic Highway 396 NE/SW

Railroads There are currently no running freight trains in Guatemala. Though there are plans to reopen railways in the future, Ferrocarriles de Guatemala would first have to rehabilitate the largely deteriorated infrastructure. Years of exposure to the elements and theft of railway components have left it inoperable in its current state.

CARGO THEFT TRENDS The National Civil Police reported a 15% decrease in vehicle theft from 2018 vs 2017. Most of the aggrieved thefts occurred from Monday to Friday, being more frequent on Mondays (22%). Young men between 20–35 years old most commonly commit this type of crimes.

High Risk Departments Modus Operandi

Department % Total Thefts Cargo thieves in Guatemala are prone to Hijacking vehicles In-Transit, Guatemala 46% threatening drivers with hand guns. Stolen merchandise is distributed Escuintla 18% among the criminal participants and/or sold in local markets and businesses. San Marcos 7%

Resources Weapons Participants Location High Risk Highways Cell Phones; Hand Guns 4–10 Males In-Transit 1–2 Vehicles Highway % Total Thefts CA9A 49% CA-9 43% RN-1 8%

sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 25 North & South America Guatemala

PERIPHERAL RISKS Overall Risk Rating: 3

CORRUPTION & ORGANIZED CRIME Corruption Index score of 28 according to Trading Economics (0-Highly Corrupt to 100-Very Clean). Drug trade related violence 5 and strong presence of local and foreign criminal organizations.

WEATHER & NATURAL DISASTERS Susceptible to hurricanes and tropical storms along the Caribbean coast that can cause mudslides, landslides, and flooding. Location on the Ring of Fire makes it vulnerable to volcanic and seismic 4 activity.

WAR & TERRORISM 1 Little to no incidence.

LABOR DISPUTES Ineffective enforcement of labor laws with a low rate of 2 unionization make labor strikes extremely rare.

CARGO THEFT Low incidence of cargo theft, with only 21 events reported in the 2 period of January through June of 2018.

CIVIL UNREST Propensity for large demonstrations with the potential to turn 3 violent. Often disrupt traffic with roadblocks.

INFRASTRUCTURE Largely underdeveloped. Poor road conditions outside of major cities that are highly vulnerable to inclement weather, specifically 4 during the rainy season from April to October.

GENERAL OVERVIEW The major threats to supply chains in Guatemala are the high levels of drug related criminal activity and the largely underdeveloped infrastructure.

Roadways in particular are vulnerable to environmental factors as a large portion of the network remains unpaved. Much more alarming, however, is the strong presence of criminal groups, both local and foreign, which make the country subject to drug and gang related violence. While the threat of cargo theft may be low, shipments may be exposed to drug contamination and businesses are often subject to extortion.

sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 26 North & South America Mexico

SUPPLY CHAIN INTELLIGENCE CENTER

LOW MODERATE ELEVATED HIGH SEVERE

AT A GLANCE Capital Mexico City Mexico is a federal republic in the southern portion of North America. Area Its geographic location and expanding transportation network facilitate 761,610 mi.2 its supply chain connections with the rest of the world. Population 133.3 million RISK LEVEL SEVERE

GDP (PPP) Inflation Rate Unemployment Rate Balance of Trade $2.28T 3.0% 3.7% $775M

Source: Trading Economics sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 27 North & South America Mexico

Highways Seaports The roadway network in Mexico is extensive, There are a total of 117 functioning ports covering all areas in the country. along Mexico’s 11,122 km length of seacoast, to which the government has allocated USD $135 million for maintenance and improvements in 2020. Highway Description Length Direction (km) Seaport State Coast Annual MEX-150D Mexico-Veracruz 388 E/W Capacity (TEUs) MEX-57/D Mexico-Nuevo Laredo 1,174 N/S Manzanillo Colima Pacific 44 million MEX-15D Mexico-Tijuana 288 NW/S Lázaro Cárdenas Michoacán Pacific 47 million MEX-180D Coatzacoalcos-Cancun 2,240 N/SE Altamira Tamaulipas Gulf 21 million MEX-45D Queretaro-Ciudad Juarez 1,920 N/S Veracruz Veracruz Gulf 66 million

Railroads Railway Region Border Seaport The railway system spans Connections Connections over 26,000 km of the Ferromex North/Central & West 5 7 country, connecting KCSM North East/Central & West 2 3 industrial zones to sea and Ferrosur Central/South East 0 3 land ports.

CARGO THEFT TRENDS Cargo theft is most prevalent in the central region, with the states of Puebla and State of Mexico accounting for 58% of all registered thefts in the nation. Overall incidence between September 2018 and August 2019 has increased by approximately 5%, with respect to the previous twelve-month period. Though the rate of growth has slowed as compared to previous years, cargo thieves use increasingly sophisticated methods to not only intercept cargo units, but also to keep them hidden once intercepted. High Risk States Modus Operandi

State % Total Thefts In-Transit Hijackings continue to be the most frequently occurring type State of Mexico 31% of theft, representing 76% of all registered incidents over the last twelve Puebla 27% months. Cargo thieves usually travel in groups of four or more, intercepting units by cutting them off on the highway and retaining the drivers for Michoacán 9% several hours, while they complete the theft. Though the use of GPS Tlaxcala 5% jammers is common at the moment, upcoming legislation to penalize the Nuevo León 4% sale, purchase, and possession of such equipment, should help deter its High Risk Highways use. Resources Weapons Participants Location Highway % Total Thefts GPS Jammers; Radios; Hang Guns N/A In-Transit MEX-150D 23% Fake Police Lights and and Rifles Uniforms/Badges CEM 16% MEX-57 11% MEX-14D 5% MEX-136 3% sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 28 North & South America Mexico

PERIPHERAL RISKS Overall Risk Rating: 5

CORRUPTION & ORGANIZED CRIME Highly susceptible to corruption. According to Trading Economics Corruption Index (0-Highly Corrupt to 100-Very Clean), Mexico is the 5th most corrupt country in Latin America. Organized crime 5 remains prevalent throughout.

WEATHER & NATURAL DISASTERS Extensive seacoasts make Mexico vulnerable to tropical storms 4 and flooding. Earthquakes of varying intensities are also common.

WAR & TERRORISM 1 Little to no incidence.

LABOR DISPUTES Occasional strikes by labor unions. These events rarely affect 2 traffic circulation.

CARGO THEFT Whereas 2018 closed with a 17% increase in cargo theft versus 2017, 2019 is expected to close with only a 7-10% increase versus 2018. Though the rate of growth has slowed, cargo theft 5 continues to pose a significant threat to supply chains.

CIVIL UNREST Frequent roadblocks and protests in the states of Oaxaca, Michoacán, Chiapas, and Guerrero as well as in Mexico City. In addition to the traffic delays caused, it is increasingly common for 4 protesters to hijack cargo units, stealing the cargo and often using the vehicles themselves to block roads. INFRASTRUCTURE Extensive network throughout, although roadways lack 4 maintenance and surveillance in some areas.

GENERAL OVERVIEW Cargo theft rates continue to increase, though not as sharply as in previous years. As the newly formed National Guard establishes a stronger presence throughout the country, the hope is that crime rates as a whole will begin to decline, including the incidence of cargo theft.

The pending legislation on GPS jammers should also help to improve cargo theft risk as the mere possession of such equipment will be grounds for an arrest, without the need for the affected parties to file a police report; a procedure which is commonly avoided due to the length and cost involved in having a cargo unit remitted to authorities.

sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 29 North & South America Panama

SUPPLY CHAIN INTELLIGENCE CENTER

LOW MODERATE ELEVATED HIGH SEVERE

AT A GLANCE Capital Panama City Panama is located on the narrow bridge of land that connects North Area and South America. Bounded by the Caribbean Sea and the Pacific 29,120 mi.2 Ocean, its well-known Panama Canal connects the two bodies of Population water, making it a crucial sea route. 4.17 million RISK LEVEL ELEVATED

GDP (PPP) Inflation Rate Unemployment Rate Balance of Trade $121BT 0.2% 6.4% -$9.2M

Source: Trading Economics sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 30 North & South America Panama

Highways Seaports The roadway network covers more than The United States has 926 coastal, Great 15,000 km, only a third of which is paved. Lakes, and inland ports which can handle The Pan-American Highway spans the length 82,000 vessels and $4.6 trillion in economic of the country up to Yaviza. With the highway stopping activity each year. short of the Darien Gap, there is no road that crosses the Seaport Province Coast Cargo Volume Jan– border into Colombia June 2018 (TEUs)

Highway Description Length Direction Balboa Panamá Pacific 7.9 million (km) Manzanillo Colón Atlantic 7.2 million CA-1 Pan-American Highway 777 E/W Charco Azul Chiriquí Pacific 5.8 million CA-9 Panama-Colon Expressway 59 N/S Cristobal Colón Atlantic 5.5 million CA-4 La Chorrera Highway 44 E/W

Railroads Railway Region Border Seaport Currently, the only Connections Connections functioning railroad is the Panama Canal North/South 0 2 Panama Canal Railway. Although it only stretches 76 km in length, it has historically been of vital importance to the safe transport of both passengers and freight across the Isthmus of Panama.

CARGO THEFT TRENDS In general, economic heritage crimes show an 8% decrease from 2018 vs 2019. Panama and West Panama are the providences that concentrated 63% of economic heritage crimes among the country, including cargo theft, from January to August 2019.

According to the statistics from the accusatory penal system, 44% of economic heritage crimes occurred between 08:00 a.m. and 4:00 p.m. being more frequent from Monday to Friday.

Modus Operandi The most commonly used M.O. is the impersonation of police officers to detain vehicles, at which point a group of armed men threaten and restrain drivers. However, recently there have been reports of incidents in which a woman drugs the driver so he can be beaten and robbed by her accomplices.

Resources Weapons Participants Location Police Uniforms; Drugs Hand Guns 4–6 Males; 1 Female In-Transit

sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 31 North & South America Panama

PERIPHERAL RISKS Overall Risk Rating: 3

CORRUPTION & ORGANIZED CRIME Corruption Index score of 37 according to Trading Economics (0-Highly Corrupt to 100-Very Clean). Strong presence of criminal 4 organizations and drug trade related violence.

WEATHER & NATURAL DISASTERS Susceptible to earthquakes. Heavy rains between October and 3 December can cause road closures due to landslides and flooding.

WAR & TERRORISM 1 Little to no incidence.

LABOR DISPUTES Labor protests and strikes occur frequently due to inadequate 3 enforcement of labor protections.

CARGO THEFT Relatively low incidence, though cargo theft criminals are often 2 violent.

CIVIL UNREST Protests are common. Roadblocks in particular can last days and 4 often result in violent confrontations with police.

INFRASTRUCTURE Highways are well maintained, but smaller roadways are mostly 3 unpaved and in poor condition.

GENERAL OVERVIEW Panama offers many supply chain advantages in terms of geographic location, serving as a bridge between oceans and continents, however, these very characteristics make it attractive to criminal organizations as well. Similar to other Central American countries, cargo theft takes a back seat to drug trafficking and corruption as supply chain risks.

The country has long served as a key transit point for a variety of illicit trade activities, a situation that has flourished under the high levels of corruption. This makes for an increased risk of cargo contamination, particularly in land and sea ports, and drug related violence.

sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 32 North & South America Paraguay

SUPPLY CHAIN INTELLIGENCE CENTER

LOW MODERATE ELEVATED HIGH SEVERE

AT A GLANCE Capital Asunción Paraguay is a constitutional republic in the central portion of South Area America. 252,798 mi.2 Population 7.1 million RISK LEVEL HIGH

GDP (PPP) Inflation Rate Unemployment Rate Balance of Trade $40.84B 4% 6.1% -$3.17M

Source: Trading Economics sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 33 North & South America Paraguay

Highways Riverports The roadway network in Paraguay is Paraguay is a landlocked country in which extensive, covering all areas in the country. river ports are split between state and private ownership. The country’s twenty private ports handle nearly 90% of soybean exports.

Highway Description Length Direction Riverport Department River Annual (km) Capacity (TEUs) HWY-7 Asunción-Ciudad del Éste 329 W/E Asunción Metropolitan Paraguay 30 million HWY-6 Encarnación-Minga Guazú 246 SW/NE Villeta Central Paraguay 20 million HWY-1 Asunción-Encarnación 374 NW/SE San Antonio Central Paraguay 15 million HWY-3 Asunción-Bella Vista Norte 459 SW/NE Encarnación Itapúa Paraná 14 million

Railroads Railway Region Border Seaport The railway system Connections Connections consists primarily of 971 Ferrocarriles del North East/Central, South 3 0 km throughout the country, Paraguay West & West connecting to Argentina, Brazil and Bolivia as was specified in the International Rail Transport (TIF).

CARGO THEFT TRENDS Cargo theft is most prevalent in the central regions, with Asunción and Central departments being responsible for most of the incidents. Among the most dangerous highways are HWY-7 and HWY-6.

High Risk States Modus Operandi

State % Total Thefts Most of the thefts occur In-Transit, where cargo vehicles are intercepted California 22% by groups of armed men, which in some cases pretend to be police Texas 15% officers, making use of jammers. Also, criminals steal cargo from warehouses, restraining security guards to commit the crimes. Florida 9% Illinois 9% Georgia 8%

Resources Weapons Participants Location High Risk Products GPS Jammers; High Power Weapons; 10–15 Males In-Transit; Fake Police Cars Grenades Warehouses Product Category % Total Thefts Electronics 17% Food & Drinks 17% Home & Garden 16% Miscellaneous 12% Building & Industrial 8% sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 34 North & South America Paraguay

PERIPHERAL RISKS Overall Risk Rating: 4

CORRUPTION & ORGANIZED CRIME Paraguay is the 132nd least corrupt nation out of 175 countries, according to the 2018 Corruption Perceptions Index reported by Transparency International. Insight Crime points out the presence 5 of organized crime throughout the country as it is an important route for drugs and illegal weapons among South America. WEATHER & NATURAL DISASTERS Flooding can affect roads; strong floods occurred in January and October. During the last four years, Paraguay suffered small earthquakes. There were some minor tremors, but no earthquake 4 was recorded in 2018.

WAR & TERRORISM According to Trading Economics Terrorism Index, Paraguay 3 decreased to 3.44 in 2017 from 3.60 in 2016.

LABOR DISPUTES 3 Eventual strikes can cause roadblocks in urban areas

CARGO THEFT Among the products most stolen are grains. Cargo theft remains a 4 high risk in the country.

CIVIL UNREST Frequent road blocks and protests in roads in different parts of the 3 country.

INFRASTRUCTURE Extensive network throughout, although roadways lack maintenance due to flooding and surveillance in some areas. Recently government announced expansion of highway paving as 4 well as the recategorization and renaming of highways.

GENERAL OVERVIEW Paraguay’s economy has grown vigorously in recent years, higher than many of its neighbors. It performed well in the first half of 2018, but began to slow in the second half of the year with heavy flooding that hampered production.

International Monetary Fund (IMF) point out that diversification and productivity growth could help the recovery of economic acceleration. Among other things, policies aimed at improving transport infrastructure would be useful.

sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 35 North & South America Peru

SUPPLY CHAIN INTELLIGENCE CENTER

LOW MODERATE ELEVATED HIGH SEVERE

AT A GLANCE Capital Lima Peru is a unitary presidential republic in the western portion of South Area America. 798,767 mi.2 Population 32.6 million RISK LEVEL HIGH

GDP (PPP) Inflation Rate Unemployment Rate Balance of Trade $222.24B 1.32% 6.7% $7.196B

Source: Trading Economics sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 36 North & South America Peru

Highways Seaports The roadway network in Peru totals almost Most shipping is through Lima’s port of 166,765 km, including about 26,000 km of Callao. There are seventeen deep-water paved roads and 139,000 km of unimproved ports, mainly in northern Peru, including earth. Salaverry, Pacasmayo, and Paita and in the south, including the iron ore port of San Juan. Highway Description Length Direction (km) Seaport Department Coast Annual HWY-1 Zarumilla-Concordia 2,945 N/S Capacity (TEUs) HWY-3 Vado Verde-Desaguadero 3,193 N/SE Lima Callao Pacific 19 million HWY-5 Nambale-Atalaya 1,861 N/E

Railroads Railway Region Border Seaport The railroad system in Peru Connections Connections consists of 1,884 km of Central West/Central 0 1 roads, including 1,584 km Southern Southwest/Southeast 1 1 of standard gauge and 300 km of narrow gauge track. The national railway network consists of two major systems.

CARGO THEFT TRENDS Cargo theft is most prevalent in the western region and ports, mainly in Lima and Callao departments, accounting for 60% of all registered thefts in the nation. Higher risk highways of the country are HWY-1, HWY-3 and HWY-5.

Modus Operandi Most of the thefts occur In-Transit, where cargo vehicles are intercepted by groups of armed men using jammers to block GPS signals. Also, warehouse burglary is a frequent mode of operation in Peru.

Resources Weapons Participants Location GPS Jammers Hand Guns & Machine Guns 6–8 Males In-Transit; Warehouses

sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 37 North & South America Peru

PERIPHERAL RISKS Overall Risk Rating: 4

CORRUPTION & ORGANIZED CRIME According to Transparency International, Peru scored 35 points out of 100 on the 2018 Corruption Perceptions Index. Insight Crime points out the presence of organized crime in Peru, which most 5 important criminal activities are the trafficking of cocaine, gold and wood. WEATHER & NATURAL DISASTERS During rainy periods there may be heavy rains, and floods can 4 affect roads. There were earthquakes that left little to no damage.

WAR & TERRORISM According to Trading Economics Terrorism Index, Peru increased to 2.95 in 2017 from 2.54 in 2016. The terrorist group Shining Path generates revenue by providing security for narcotics trafficking and growing coca 3 to produce cocaine. They are headquartered in the Valley of the Apurimac, and also operate in Ene, and Mantaro River (VRAEM) region. LABOR DISPUTES A large agriculture strike in the end of January blocked roads in 4 several states.

CARGO THEFT 5 Cargo theft remains as a potential risk in the country.

CIVIL UNREST Last year, there were big protests against corruption and 3 government.

INFRASTRUCTURE Highways often have maintenance problems due to constant 5 rainfall.

GENERAL OVERVIEW The economic expectation in Peru, according to the International Monetary Fund (IMF) is an acceleration to 4.1% next year driven by “the increase in prices of raw materials and countercyclical fiscal and monetary policies” and “that the strength of private domestic demand would compensate for gradual fiscal consolidation”.

sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 38 North & South America Puerto Rico

SUPPLY CHAIN INTELLIGENCE CENTER

LOW MODERATE ELEVATED HIGH SEVERE

AT A GLANCE Capital San Juan Puerto Rico is an island that covers 3,435 square miles in the Area northeastern Caribbean Sea, located approximately 1,000 miles 3,435 mi.2 southeast of Miami, FL. Its nearest neighbor is the Dominican Population Republic to the west and the British and U.S. Virgin Islands to the 3.195 million east. RISK LEVEL HIGH

GDP (PPP) Inflation Rate Unemployment Rate Balance of Trade $129.9B 0.3% 7% $2.069M

Source: Trading Economics sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 39 North & South America Puerto Rico

Highways Seaports The road system in Puerto Rico consists Puerto Rico has three seaports that can of over 16,691 miles of roadways, which handle commercial container traffic. includes 282 miles of expressway.

Highway Description Length Direction Seaport Coast Annual Capacity (TEUs) (mi) San Juan North N/A PRI-1 San Juan to Ponce 71 N/S Ponce South N/A PRI-2 San Juan to Ponce 138 E/W Mayaguez West N/A PRI-3 San Juan to Ceiba 41 E/W

Railroads Puerto Rico has no major freight rail systems currently in operation. Freight is moved to and from the seaports exclusively by truck.

CARGO THEFT TRENDS Cargo theft is centralized around the Port of San Juan and the nearby pharmaceutical manufacturers. Theft tends towards large scale Pilferages, typically as trucks await entry to the port.

High Risk Areas Modus Operandi

Area Thefts are primarily perpetrated when a shipment is stationary and Port of San Juan unattended and tend to target completed Pharmaceuticals product post- manufacturing en route to the sea ports for export. Oftentimes, the entire tractor and/or trailer are stolen via the use or threat of violence.

Resources Weapons Participants Location RF Scanners; Knives; 2-4 Males Staging yards outside sea Inside Information Hand Guns ports High Risk Products

Product Category Pharmaceuticals/APIs

sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 40 North & South America Puerto Rico

PERIPHERAL RISKS Overall Risk Rating: 4

CORRUPTION & ORGANIZED CRIME While organized crime dominates the cargo theft landscape, 3 corruption stemming from these organizations is minimal.

WEATHER & NATURAL DISASTERS Puerto Rico is situated in a very exposed area of the Caribbean which is often hit by severe storms and earthquakes which can encompass the entire island, often completely shutting down over 5 the road and ocean trade for up to months at a time.

WAR & TERRORISM There is no war and little to no large scale terrorism events that 1 disrupt the flow of cargo.

LABOR DISPUTES While uncommon, labor disputes at key freight hubs such as sea and airports have caused disruption in the past and have the 2 ability to do so in the future.

CARGO THEFT Cargo theft is not as prevalent and not as sophisticated as it is in 3 the U.S.

CIVIL UNREST While protests and demonstrations are frequent, they are typically 2 near the governor’s mansion and rarely block the flow of cargo.

INFRASTRUCTURE As a result of several storms over the past two years, the road 4 system is in severe disrepair and the electrical grid is unreliable.

GENERAL OVERVIEW Recent natural disasters have crippled Puerto Rico’s infrastructure and its emergency service’s ability to respond to such disasters.

As the island continues to rebuild, the possibility of further disasters threatens the security of the island. Any further disasters will likely see a more severe impact and a more prolonged recovery than in 2017.

sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 41 North & South America Venezuela

SUPPLY CHAIN INTELLIGENCE CENTER

LOW MODERATE ELEVATED HIGH SEVERE

AT A GLANCE Capital Caracas Venezuela is a federal republic on the northern coast of South Area America, consisting of a continental landmass and a large number 912,050 mi.2 of small islands in the Caribbean Sea. Population 28.1 million RISK LEVEL HIGH

GDP (PPP) Inflation Rate Unemployment Rate Balance of Trade $33.67B 1,000,000% 35% $4.616B

Source: Trading Economics and IMF sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 42 North & South America Venezuela

Highways Seaports The road network reaches about 96,000 km The most important ports are in the and is concentrated in north central area of Caribbean Sea. the country.

Highway Description Length Direction Seaport Department River Annual Capacity (km) (TEUs) Caracas-La Guaira Caracas-La Guaira 17 N/N La Guaira Vargas Atlantic 1,600 tons per day* Troncal 9 Caracas-Miranda 106 N/E Maracaibo Zulia Atlantic 6,000 tons per day* Troncal 1 Caracas-Valencia 155 N/W Puerto Cabello Carabobo Atlantic 4,800 tons per day* Troncal 5 San Carlos-Barinas 250 N/SW * http://www.bolipuertos.gob.ve Centro Occidental Morón-Veragacha 125 N/W

Railroads Railway Region Border Seaport Rail transport has Connections Connections developed little compared Ferrocarril Simón Bolívar Puerto Cabello-Barquisimeto 0 1 to other countries, given the low cost of fuel.

CARGO THEFT TRENDS Cargo theft and looting remain as a potential risk in the country. All kinds of products are stolen by criminals, but food is particularly critical. In some cases, criminals can take advantage of parts of highways where there are problems of cellular communication and satellite location. Some high risk level areas are: the ciities of Maracay and Maracaibo, avenue Circunvalacion Norte de Barquisimeto, and Lara-Zulia highway.

Modus Operandi Criminals throw objects, such as metal, trunk bars, or interlaced nails on the way to force drivers to stop. They also throw rocks at windshields or threaten using firearms. Sometimes they approach inside another vehicle, using weapons to force drivers to stop. In some cases, groups of armed bikers surround the truck until it stops; other times they wait for the truck to slow down. There are records of crowds surrounding a truck like a swarm during a rest stop or while stopped for repairs. There is also record of Fake Police.

Resources Weapons Participants Location Motorcycles Similar to Police; Hand Guns Large Groups In-Transit Radio Communication

sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 43 North & South America Venezuela

PERIPHERAL RISKS Overall Risk Rating: 4

CORRUPTION & ORGANIZED CRIME Highly susceptible to corruption at all government levels. Local and foreign crime organizations performing at Venezuela are 5 involved in drug trafficking, smuggling etc.

WEATHER & NATURAL DISASTERS Venezuela suffered one major earthquakes last year in August, 4 with no human or material loss. Hurricanes are rare.

WAR & TERRORISM 1 Little to no incidents.

LABOR DISPUTES 4 Protests can affect traffic circulation.

CARGO THEFT 5 Cargo theft remains as a potential risk in the country.

CIVIL UNREST Demonstrations against the government happens and can end up in violent confrontation. Many protests block roads or streets. Protests because lack of food and lack of basic services, such as 5 water and energy became common.

INFRASTRUCTURE Many highways are deficient in signage, lighting, control points. 4 Many have many potholes/pits and asphalting problems.

GENERAL OVERVIEW The economic crisis in the country continues to worsen, characterized by economic downturn, hyperinflation, shortages, declining oil production and exports, health crises, large emigration to neighboring countries such as Brazil and Colombia. Population living conditions have deteriorated, and robberies and looting are common.

sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 44 EMEA Belgium

SUPPLY CHAIN INTELLIGENCE CENTER

LOW MODERATE ELEVATED HIGH SEVERE

AT A GLANCE Capital Brussels Belgium is one of the smallest and most densely populated European Area countries, and it has been, since its independence in 1830, a 30,528 km2 representative democracy headed by a hereditary constitutional Population monarch. 11.5 million RISK LEVEL HIGH

GDP (PPP) Inflation Rate Unemployment Rate Balance of Trade USD $43,217 1.26% 5.7% €2.929B

Source: Trading Economics sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 45 EMEA Belgium

Highways Seaports Belgium has a total of 154,012 km of road Belgium has multiple seaports as well as and a high accident rate inland ports that are important for trade.

Highway Description Length Direction Seaport Dept. River Annual (mi) Capacity (TEUs) A1 Hoogstraten to Brussels 81 N/S Oostende West North Sea 1.3 million A2 Maasmechelen to Leuven 85 E/W Flanders A3 Liege to Brussels 83 E/W Bruges-Zeebrugge West- North Sea 40 million Flanders A4 Brussels to Arlon 188 NW/SE A10 Ghent to Oostende 55 SE/NW A14 Antwerp to Menen 100 NE/SW

Railroads Months Targeted Belgium has a total of 3,592 km of railway Belgium saw the most incidents recorded with multiple freight corridors passing in October and November which would be through the country. in line with the fact a lot of company’s ship product for the Christmas market at that time of the year and criminals target this.

CARGO THEFT TRENDS Unsecured Parking is the most targeted location. There are reports of criminals disguising themselves as police/customs officials in order to stop trucks to attempt Hijacking.

High Risk States Modus Operandi

State % Total Thefts Pilferage is the most commonly reported M.O. in Belgium

Hainut 34% Resources Weapons Participants Location Liege 15% Criminal Gangs; Sharp Cutting Unknown Unsecured Parking Florida 9% Disguises; Blue Lights; Objects/ Migrants Knives; Bolt Cutters

High Risk Products

Product Category % Total Thefts Personal Care 13% Clothing & Shoes 10% Auto & Parts 8%

sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 46 EMEA Belgium

PERIPHERAL RISKS Overall Risk Rating: 4

CORRUPTION & ORGANIZED CRIME A growing problem, especially in Brussels, is theft from vehicles, 4 both moving and parked.

WEATHER & NATURAL DISASTERS Flooding is a threat along rivers and in areas of reclaimed coastal 3 land, protected from the sea by concrete dikes

WAR & TERRORISM 4 Terrorists are very likely to try to carry out attacks in Belgium.

LABOR DISPUTES Labor strikes occur with some frequency and can cause delays or 4 cancellations of services for several days at a time.

CARGO THEFT Most thefts occur at Unsecured Parking; the most stolen product type is Personal Care; the preferred M.O. is Pilferage. Criminals are disguising themselves as police/customs officials to rob 4 trucks.

CIVIL UNREST Prior police approval is required for all public demonstrations, and police are present to ensure adequate security for participants and 3 passers-by.

INFRASTRUCTURE Traffic is fast and Belgium’s accident rate is high mainly due to 3 speeding. Roads are up to main European standards

GENERAL OVERVIEW Belgium is often ranked as one of the top countries where most cargo thefts are committed. It would be considered a transit country through which shipments must pass if on the United Kingdom route to/from certain other countries in Europe. Awareness of the presence of criminals that disguise themselves as police or customs officials is a must. Migrants of late are causing major concerns at parking areas in the country where not only are they trying to force their way onto trucks but violence seems to be escalating amongst different groups from different countries

sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 47 EMEA France

SUPPLY CHAIN INTELLIGENCE CENTER

LOW MODERATE ELEVATED HIGH SEVERE

AT A GLANCE Capital Paris France is a country in Western Europe that borders Andorra, Belgium, Area Germany, Italy, Luxembourg, Spain, and Switzerland. It has a great 547,557 km2 infrastructure which benefits the supply chain. Population 65.9 million RISK LEVEL HIGH

GDP (PPP) Inflation Rate Unemployment Rate Balance of Trade USD $39,555 1.0% 8.5% -€4.6B

Source: Trading Economics sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 48 EMEA France

Highways Seaports France has 1,028,446 km of highway. France has many seaports with some of the largest being Brest, Calais, Dunkerque, Le Havre, Marseille, and Nantes.

Highway Description Length Direction Seaport Department River Annual (km) Capacity (TEUs) Northern Paris-Lile 211 N/S Brest Brittany Celtic Sea 150,000/day Motorway Calais Hauts-de- Strait of 44 million Eastern Paris-Strasbourg 482 E/W France Dover Motorway Dunkerque Hauts-de- French 20.3 million Motorway of Lyon-Marseille 302 N/S France North Sea the Sun Le Havre Seine-Maritime English 70 million La Provençale Aix-en-Provence-Cote 224 E/W Channel d’Azur

Railroads France has 29,640 km of railway.

CARGO THEFT TRENDS Unsecured Parking is the most targeted location in France, and Auto & Parts the most stolen product type.

High Risk States Modus Operandi

State % Total Thefts The most frequent M.O. in France is Pilferage. Bourgogne-France- 27% Resources Weapons Participants Location Comte Usually not defined; Unknown Unknown Unsecured Parking Auvergne-Rhone- 20% Armed Criminals/ Alpes Violence Ile-de-France 14%

sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 49 EMEA France

PERIPHERAL RISKS Overall Risk Rating: 3

CORRUPTION & ORGANIZED CRIME Transnational organized crime (TOC) operatives reside in France. TOC syndicates are technically savvy and conduct many of their 3 schemes via cyber platforms.

WEATHER & NATURAL DISASTERS Forest fires can occur anywhere in southern France during the summer months but especially along the Mediterranean coast and 4 on Corsica.

WAR & TERRORISM 4 Terrorists are very likely to try to carry out attacks in France.

LABOR DISPUTES Strikes are a commonly used method in labor disputes in France 4 and can disrupt the supply chain for extensive periods of time

CARGO THEFT Reports of burglaries taking place while lorry drivers sleep in their vehicles. Also any attempts by illegal migrants to enter lorries 4 while stationary or in slow moving traffic.

CIVIL UNREST Protests and demonstrations routinely occur throughout France, especially in major cities. These protests range from concern over work conditions/wages to the environment. While protests are 4 generally non-violent, some have resulted in property damage and minor injuries. INFRASTRUCTURE France has excellent ratings for its road, rail and air infrastructure, 4 putting it amongst the EU top performers for these indicators.

GENERAL OVERVIEW The number of cargo theft incidents recorded in France remains low, due to underreporting. Of the known incidents in France, Unsecured Parking is the location where drivers should be most vigilant; Fuel Theft occurs the most.

Apart from theft the supply chain in France can also be negatively affected by terrorist attacks, forest fires and strikes by the workforce.

sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 50 EMEA Germany

SUPPLY CHAIN INTELLIGENCE CENTER

LOW MODERATE ELEVATED HIGH SEVERE

AT A GLANCE Capital Berlin Germany is located in the north-central part of Europe. One of the Area world’s leading exporters, Germany has consistently maintained a 357,021 km2 surplus with its trading partners. Population 82.3 million RISK LEVEL HIGH

GDP (PPP) Inflation Rate Unemployment Rate Balance of Trade USD $45,959 1.4% 5% €21.4B

Source: Trading Economics sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 51 EMEA Germany

Highways Seaports Germany has 13,000 km of highway. The German seaports are of vital importance for the country’s industry and economy, handling almost a quarter of Germany’s imports and exports.

Railroads Seaport Department River Annual Germany has 33,488 km of railroad. Capacity (TEUs) Port of Hamburg Hamburg Elbe 8.73 million Bremerhaven Bremen Weser 5.42 million

CARGO THEFT TRENDS Unsecured Parking is the most targeted location in Germany; Auto & Parts is the most targeted product type

High Risk States Modus Operandi

State % Total Thefts The most common M.O. in Germany is Curtain Slashing.

Lower Saxony 28% Resources Weapons Participants Location Baden-Wurttemberg 22% Usually not Defined; Sharp objects Unknown Unsecured Parking North Rhine- 12% Armed Criminals/ to cut the Westphalia Violence tarpaulin

sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 52 EMEA Germany

PERIPHERAL RISKS Overall Risk Rating: 4

CORRUPTION & ORGANIZED CRIME The Federal Criminal Police Office reported a considerable decline 4 in the economic harm from organized crime in Germany.

WEATHER & NATURAL DISASTERS Germany is favoured with a generally temperate climate, especially in view of its northerly latitudes and the distance of the larger portions of its territory from the warming influence of the 3 North Atlantic Current.

WAR & TERRORISM Terrorists are very likely to try to carry out attacks in Germany. The German government has announced that increased security has been put in place as a precaution at public buildings, major 4 events, transport hubs and large public gatherings.

LABOR DISPUTES The number of strike days in Germany rose sharply in 2018. 3 Mainly because of strikes in the metal industry.

CARGO THEFT Most cargo thefts occur at Unsecured Parking via Curtain 4 Slashing. The preferred product type is Auto & Parts.

CIVIL UNREST Germany faced some (violent) protest due to concerns amongst 4 the population caused by the influx of migrants.

INFRASTRUCTURE Many roads experience deep and uneven rutting, causing grooves to form on seemingly flat and level road surfaces. This often results in hard and unexpected steering pull, which can lead to 4 accidents for some drivers.

GENERAL OVERVIEW Germany will register cargo theft in a central database, which will make it easier in the future to get an accurate picture of the depth of the problem. It is already known that Curtain Slashing is very common in the country and causes many losses in the supply chain.

The most targeted goods are Auto & Parts; most thefts occur at Unsecured Parking.

sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 53 EMEA Italy

SUPPLY CHAIN INTELLIGENCE CENTER

LOW MODERATE ELEVATED HIGH SEVERE

AT A GLANCE Capital Rome Italy is located in south-central part of Europe. Jutting out deeply into Area the Mediterranean Sea, the country occupies a position of strategic 301,340 km2 importance, enhancing its trading potential not only with eastern Population Europe but also with North Africa and the Middle East. 60.6 million RISK LEVEL HIGH

GDP (PPP) Inflation Rate Unemployment Rate Balance of Trade USD $35,739 0.5% 9.9% €5.728B

Source: Trading Economics sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 54 EMEA Italy

Highways Seaports Roads are relatively well maintained, Because of the way Italy is positioned in but generally narrow and often have no Europe, seaports are present along almost guardrails. Extensive lighting exists. Vehicle the entire border. accidents are common.

Highway Description Length Direction Seaport Department River Annual (mi) Capacity (TEUs) A1 Milan–Rome–Naples 472 N/S Augusta Sicily Mediterranean 33.9 million A2 Fisciano–Villa San Giovanni 268.6 N/S Sea A3 Napoli–Reggio Calabria 293.9 N/W Brindisi Brindisi Adriatic Sea 7.8 million Cagliari Sardinia Ligurian Sea / 2.6 million Mediterranean Sea

Railroads Italy has a total of 20,181.7 km of railways.

CARGO THEFT TRENDS Underreporting and the lack of data sharing ads to the difficulty of obtaining a clear picture of cargo theft trends.

High Risk States Modus Operandi

State % Total Thefts Italy is one of the few countries in the region where Hijackings occur. Lombardy 17% Resources Weapons Participants Location Apulia 16% Usually Unknown; Unknown OCG’s Warehouse Campania 12% Armed Criminals/ Violence; GPS Jamming

High Risk Products

Product Category Tobacco Metals Food & Drinks

sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 55 EMEA Italy

PERIPHERAL RISKS Overall Risk Rating: 4

CORRUPTION & ORGANIZED CRIME There are multiple organized crime rings active in Italy that also use cargo crime either as a way to facilitate other criminal 5 activities or as a target.

WEATHER & NATURAL DISASTERS Many parts of Italy lie on a major seismic fault line. Minor tremors 4 and earthquakes are a regular occurrence.

WAR & TERRORISM Terrorists are likely to try to carry out attacks in Italy, especially caused by tension due to large groups of illegal migrants entering 4 the country.

LABOR DISPUTES Strikes are permitted in practice, but typically short-term to draw attention to specific areas of concern. In addition, workers (or former employees) commonly participate in demonstrations to 4 show opposition to proposed job cuts or facility closings, but these demonstrations have not threatened investments. CARGO THEFT The most targeted location is Warehouse/DC and the most stolen 4 product type is Metals. Most thefts occur by Facility Theft.

CIVIL UNREST Public demonstrations happen frequently. Some factions have 4 organized protests that have turned violent.

INFRASTRUCTURE Roads are well maintained, and extensive lighting exists. Vehicle accidents are common, and accidents involving pedestrians are also common. Driving in Italy can be stressful. Traffic laws are not 4 often followed or enforced.

GENERAL OVERVIEW Italy is one of many countries in the region where underreporting occurs. However, the incidents that are reported show a high rate of violence being used in cargo theft, with Hijacking being amongst the highest M.O.’s used in the region.

Most thefts are recorded at Warehouse/DC and Metals is the most targeted product type.

sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 56 EMEA The Netherlands

SUPPLY CHAIN INTELLIGENCE CENTER

LOW MODERATE ELEVATED HIGH SEVERE

AT A GLANCE Capital Amsterdam The Netherlands is among the most prosperous countries in the world, Area with an excellent infrastructure and a special unit within the police force 41,543 km2 that focuses on mitigating cargo theft. Population 17.12 million RISK LEVEL HIGH

GDP (PPP) Inflation Rate Unemployment Rate Balance of Trade USD $49,804 2.8% 3.4% €5.18B

Source: Trading Economics sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 57 EMEA The Netherlands

Highways Seaports The Netherlands has 139,124 km of highway. Next to sea ports The Netherlands also has multiple major ports located at rivers like the Port of Rotterdam and the Port of Amsterdam.

Highway Description Length Direction Seaport Department Coast Annual (km) Capacity (TEUs) A13 Rijswijk-Rotterdam 17 km N/S Port of Amsterdam North Holland Ijmeer 81.3 million A10 Beltway Coenplein 32 km Beltway Vlissingen Zeeland Wester- 66.6 million A12 The Hague-German Border 137 km W/E Schelde A16 Rotterdam-Breda 58 km N/S Port of Rotterdam South-Holland Maas 232.8 million (first 6 months A2 Amsterdam-Limburg 217 km N/S 2018)

Railroads Railway Region Border Seaport The Netherlands has 3,058 Connections Connections km of railway Rotterdam-Genua South Holland 3 2

CARGO THEFT TRENDS The most recorded M.O.’s in the Netherlands are Curtain Slashing (43%), Pilferage (38%), and Vehicle Theft (10%). Most incidents were recorded at Unsecured Parking (90%), with the most targeted product type being Auto & Parts (13%). There have been reported incidents in the last twelve months using the M.O. Rolling Theft.

High Risk States Modus Operandi

State % Total Thefts Curtain Slashing is the most commonly used M.O., accounting for 43% Limburg 34% of the incidents. Unsecured Parking accounted for 90% of incidents North Brabant 32% recorded. South Holland 18% Resources Weapons Participants Location Vehicles; Firearms; N/A Unsecured Parking Armed Criminals/ Sharp Cutting High Risk Highways Violence

Highway % Total Thefts A67 25% A73 7% A2 5%

sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 58 EMEA The Netherlands

PERIPHERAL RISKS Overall Risk Rating: 4

CORRUPTION & ORGANIZED CRIME In 2017, the Dutch National Police reported at least twenty-eight drug-related murders and eight murders connected to corruption and organized crime. The police are widely seen as professional 3 and have low tolerance for corruption.

WEATHER & NATURAL DISASTERS Mild earthquakes occur in the northern part due to gas winning and since the Netherlands are below sea level, flooding occurs 2 occasionally.

WAR & TERRORISM Over the past year the threat situation in the Netherlands has been unsettled, partly due to the discovery of plans for a complex attack which led to the arrest of seven people on 27 September 4 2018. The threat level is being maintained at 4 (on a 1 to 5 scale). Level 4 indicates that the threat of an attack is real. LABOR DISPUTES 2 An average of 8 strike days/annum.

CARGO THEFT The most targeted location is Unsecured Parking (90%), with Auto & Parts (13%) being the most targeted product type. Curtain Slashing is the most commonly used M.O. accounting for 43%. 4 The Dutch National Police have highlighted containers being stolen from ports being possibly linked to the drug trade. CIVIL UNREST Civil demonstrations, which range from small groups to thousands of participants, are common and are often directed at the government, focusing on matters involving foreign relations, 3 domestic policy, or economic developments.

INFRASTRUCTURE Marks for its infrastructure across all modes are the highest across the EU. The Netherlands also score highly for the 1 timeliness of shipments.

GENERAL OVERVIEW Reported cargo theft incidents have seen an increase in The Netherlands over the last twelve months and it still remains a highly targeted area due to the large volumes that are being transported through it, being a transport hub. Auto & Parts was the most recorded stolen product type, and Unsecured Parking remains a highly targeted location in the Netherlands. Curtain Slashing remains as the most used M.O. The Netherlands have also seen the rise of illegal migrants hiding in trucks to travel on to the U.K. and other countries in the EU.

sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 59 EMEA Russia

SUPPLY CHAIN INTELLIGENCE CENTER

LOW MODERATE ELEVATED HIGH SEVERE

AT A GLANCE Capital Moscow Russia extends across the whole of northern Asia and Area the eastern part of Europe, incorporating a great range of 17.1 million km2 environments and landforms. It has varied market segments Population spread across eleven time zones. 145.9 million RISK LEVEL SEVERE

GDP (PPP) Inflation Rate Unemployment Rate Balance of Trade USD $24,790 4.6% 4.5% USD $12.51B

Source: Trading Economics sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 60 EMEA Russia

Highways Seaports Thoroughfares marked as major routes on In order to handle the sheer tonnage of trade maps can be two-lane roadways, and some turnover, Russia’s Baltic, Arctic, Pacific, and routes have heavy truck and bus traffic, while Black Sea coasts have world-class ports. others have poor or non-existent shoulders. Asphalt quality varies widely, and roads outside of cities are often Seaport Department River Annual poorly illuminated. Capacity (TEUs) Highway Description Length Direction Kaliningrad North Western Baltic Sea 7.6 million (km) Nakhodka Far Eastern Sea of 13.5 million M2 Moscow-Crimea 720 km N-S Japan M4 Moscow-Novorossiysk 1550 km N-S Novorossiysk Southern District Black Sea 131.4 million M5 Moscow-Ural Mountains 1879 km E-W

Railroads Railway Region Border Connections Russia has 87,157 km of Russia-Europe Multiple Multiple railroad.

CARGO THEFT TRENDS The amount of cargo theft recorded in by the SCIC has increased due to a new data sharing partnership. Although this gives a much improved picture of what is occurring but it is important to highlight that it is still only a fraction and like most countries, incident reporting and data sharing is still limited. Based on the SCIC gathered data, Theft of Full Truckload (60%), Deceptive Pickup (24%), and Pilferage (12%) were the top three Modi Operandi seen in the last twelve months. Cargo theft is believed to be a major issue in Russia with a large presence of fraud and fake documentation leading to products being unloaded in different locations than what is planned by the owner or initially picked up deceptively from origins. In a large number of incidents, employee involvement including that of the driver is suspected. Criminals are not adverse to using violence.

High Risk States Modus Operandi

State % Total Thefts Resources Weapons Participants Location Central District 63% Criminal Gangs; Guns; Knives N/A Company Yard/Premises; Volga Federal District 10% Employee Involvement Warehouse/DC; Northwestern 9% In-Transit; Rail Province

sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 61 EMEA Russia

PERIPHERAL RISKS Overall Risk Rating: 5

CORRUPTION & ORGANIZED CRIME Russia’s judicial system remains heavily biased in favour of the state, which often leaves investors with little recourse in the event of a legal dispute with the government. High levels of corruption 5 among government officials compound this risk.

WEATHER & NATURAL DISASTERS There are occasional occurrences of flooding in southern regions, 3 and forest fires, mainly in the far eastern areas and Siberia.

WAR & TERRORISM 4 Terrorists are very likely to try to carry out attacks in Russia.

LABOR DISPUTES In recent years the number of labor protests in Russia, including various forms of work stoppage, has increased significantly compared to previous years, but the number of legally constituted 3 collective labor disputes and strikes has remained very low.

CARGO THEFT Cargo theft is still largely underreported in Russia. Theft of Full Truckload is the top M.O., Company Yard/Premises is the top location, and Food & Drinks is the top product stolen as recorded 5 by the SCIC in the last twelve months.

CIVIL UNREST While numerous public demonstrations do take place, local officials selectively deny permission to assemble or offer alternate 3 venues that are inconveniently or remotely located.

INFRASTRUCTURE Thoroughfares marked as major routes on maps can be two- lane roadways, and some routes have heavy truck and bus traffic, while others have poor or non-existent shoulders. Asphalt 4 quality varies widely, and roads outside of cities are often poorly illuminated.

GENERAL OVERVIEW Like many countries in the EMEA region, Russia has massive underreporting when it comes to cargo theft. Although the cargo theft incidents reported to the SCIC has largely increased, it is still believed to be only a fraction of what is actually occurring. It is one of the countries where cargo crime is believed to be a major problem. This is likely due to the large volumes of cargo crossing the country, through large desolated areas. Fraud, deception and diversion are used frequently, often involving company employees. Violence is often reported to be used by criminals during thefts.

sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 62 EMEA South Africa

SUPPLY CHAIN INTELLIGENCE CENTER

LOW MODERATE ELEVATED HIGH SEVERE

AT A GLANCE Capital Cape Town South Africa is located at the southern tip of the African continent. Area It enjoys relative macroeconomic stability and a largely pro-business 1.22 million km2 environment Population 58.7 million RISK LEVEL SEVERE

GDP (PPP) Inflation Rate Unemployment Rate Balance of Trade $12,143 4% 29% ZAR -2.8B

Source: Trading Economics sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 63 EMEA South Africa

Highways Seaports South Africa has 747,014 km of highway. The South African Government views the country’s ports and terminals as key engines for economic growth.

Highway Description Length Direction Seaport Department River (km) Cape Town Western Cape South Atlantic Ocean N1 Cape Town – Bulawayo, ZW 1,929 km S/NE Durban KwaZulu Natal Indian Ocean N2 Cape Town-Ermelo 2,255 km S/NE Port Elizabeth Eastern Cape Indian Ocean N3 Johannesburg-Durban 577 km N/S Richards Bay KwaZulu Natal Indian Ocean N4 Skilpadshek, BW – 718 km N/NE Komatipoort, MZ

Railroads Railway Region Border Seaport South Africa has 20,986 km Connections Connections of railroads. North-South corridor KwaZulu-Natal 8 3

CARGO THEFT TRENDS Cargo theft in South Africa is usually committed by the use of a high level of violence with most of the incidents occurring In-Transit. These violent gangs use guns frequently and are not adverse in shooting to kill. Hijacking is the M.O. which is used mostly. Criminals also disguise themselves as police officials to coerce truck drivers to stop, to facilitate them stealing both the truck and cargo.

High Risk States Modus Operandi

State % Total Thefts Resources Weapons Participants Location Gauteng 59% Criminal Gangs; Vehicles; Firearms; N.A In-Transit Eastern Cape 11% Disguises; Blue Lights Explosives KwaZulu-Natal 9%

High Risk Months

Month % Total Thefts February 18% October 16% August 15% sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 64 EMEA South Africa

PERIPHERAL RISKS Overall Risk Rating: 5

CORRUPTION & ORGANIZED CRIME Criminals may target vehicles on the highways by placing debris in the road and waiting for a vehicle to stop after hitting the object. In another frequently used tactic, an individual (or several working together) with a 5 vehicle on the side of the road with an apparent mechanical problem may attempt to flag down passing traffic for help. WEATHER & NATURAL DISASTERS During the rainy season, thunderstorms, lightning strikes, or water damage often disrupt power to alarm systems, traffic lights, and 4 other electronic equipment.

WAR & TERRORISM 4 Terrorists are likely to try to carry out attacks in South Africa.

LABOR DISPUTES Labor strikes and protests occur frequently and can be violent and disruptive. Frequent protests involving the transport network including truck drivers are happening currently, often leading to 5 trucks being set on fire and drivers being killed. Foreign truck drivers are often targeted with violence during these protests. CARGO THEFT Cargo theft in South Africa is a violent crime which occurs frequently. The majority of incidents are the result of Hijacking with the most targeted location being In-Transit. The most stolen 5 product type is Electronics.

CIVIL UNREST Protests against the government occur frequently and can be 4 violent and disruptive.

INFRASTRUCTURE South Africa Economic Development Minster says infrastructure development is a key driver of the country’s growth prospects, 4 with focal areas of rail and water infrastructure.

GENERAL OVERVIEW Where the SCIC is able to record cargo theft data, South Africa has the highest amount of violence used in the region. Criminals do not shun from using heavy firearms and explosives. The number of incidents are underreported but when losses occur, it often involves full truckloads or large parts of loads. Criminals disguised as police officials are an M.O. frequently seen resulting in a truck and cargo being Hijacked. Cash-in-Transit vehicles are frequently targeted, often being bombed in order for criminals to access their cargo.

sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 65 EMEA Spain

SUPPLY CHAIN INTELLIGENCE CENTER

LOW MODERATE ELEVATED HIGH SEVERE

AT A GLANCE Capital Madrid Spain is located in the southwest of Europe on the Iberian Peninsula, Area which also consists of Portugal. Spain is the fourth-largest economy in 505,990 km2 the Eurozone, post-Brexit. Population 47.37 million RISK LEVEL ELEVATED

GDP (PPP) Inflation Rate Unemployment Rate Balance of Trade $33,146 0.3% 14.02% -€1.53B

Source: Trading Economics sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 66 EMEA Spain

Highways Seaports The highways in Spain span over 683,000 Spain ports play an important role in the km across the country. export and import trade of the country.

Highway Description Length Direction Seaport Department River Annual (km) Capacity (TEUs) A-1 Madrid-Irun 371 km N/S Algeciras Cádiz Bay of Gibraltar 50.8 million R-1 Madrid-El Molar 61 km N/S Barcelona Barcelona Balearic Sea 61 million AP-1 Burgos-Eibar 87.35 km N/S Bilbao Vizcaya Bay of Biscay 34.2 million Valencia Valencian Balearic Sea 57.5 million Community

CARGO THEFT TRENDS Pilferage from Unsecured Parking and Facility Thefts from Warehouse/DC occur the most, based on the limited cargo theft data available in Spain. Cargo theft is very underreported in Spain. Rolling thefts have been known to occur as have Deceptive Pickups. Many parking areas on the routes to and from Barcelona and Madrid are known to be targeted by cargo theft gangs. High Risk States Modus Operandi

State % Total Thefts Resources Weapons Participants Location Catalonia 42% Criminal Gangs Sharp Cutting N/A Unsecured Parking at Andalusia 21% Objects/Knives; Laybys, Roadside, Industrial Community of 16% Bolt Cutters Estates, Unattended Rest Madrid Areas and Truck Stops

High Risk Products

Product Category % Total Thefts Auto & Parts 21% Miscellaneous 16% Alcohol 13% Attempted Theft 8% Unknown Product 21% sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 67 EMEA Spain

PERIPHERAL RISKS Overall Risk Rating: 4

CORRUPTION & ORGANIZED CRIME The Catalan capital is one of the preferred destinations for the mafia, which has historically chosen Barcelona as a place to live given its proximity to Italy and the fact that they can go unnoticed 4 there. The Catalan coast has also historically been a place where mafias launder their ill-gotten gains. WEATHER & NATURAL DISASTERS Forest fires occur frequently in Spain (including Spanish islands) 3 during the summer months.

WAR & TERRORISM Terrorists are likely to try to carry out attacks in Spain. Attacks 4 could be indiscriminate.

LABOR DISPUTES Labor disputes can be accompanied by strikes or threats 4 therewith of the labor force. This can disrupt the supply chain.

CARGO THEFT Highly underreported. The known incidents consist mostly of Pilferage at Unsecured Parking and Facility Thefts from 4 Warehouse/DC. Auto & Parts is the most stolen product type.

CIVIL UNREST General strikes can cause disruptions to public transportation, a temporary shutdown in public services, and large street protests. These events typically have the greatest effect on public 4 transportation and the industrial sectors, making travel within areas near the protests difficult. INFRASTRUCTURE 4 Spain has an excellent network of roads and highways.

GENERAL OVERVIEW Like many countries, there is massive underreporting in Spain. This undermines the ability to abstract cargo theft trends. There are organized crime groups active in Spain and for at least some of these groups, cargo is a target. Of the known incidents thefts at Unsecured Parking occur the most and Auto & Parts seems to be highly targeted. There have also been reports of Rolling Thefts and Deceptive Pickups.

sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 68 EMEA Sweden

SUPPLY CHAIN INTELLIGENCE CENTER

AT A GLANCE Sweden is located on the Scandinavian Peninsula in northern Europe. Sweden’s high living standards result from an economy that performs optimally because of regulatory efficiency and open- market policies that enhance flexibility, competitiveness, and large flows of trade and investment.

Capital Stockholm Area 447.4 million mi.2 Population 10.05 million RISK LEVEL HIGH LOW MODERATE ELEVATED HIGH SEVERE

GDP (PPP) Inflation Rate Unemployment Rate Balance of Trade $47,193 1.7% 6.9% SEK 6.7B

Source: Trading Economics sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 69 EMEA Sweden

Railroads Seaports Sweden has 14,127 km of railroad. The major seaports in Sweden are Brofjorden, Goteborg, Helsingborg, Karlshamn, Lulea, Malmo, Stockholm, Railway Region Border Seaport Trelleborg, and Visby. Connections Connections Western Multiple East & Ports of Stockholm Seaport Department River Annual Capacity (TEUs) Main Line North-West & Gothenburg Gothenburg Port Västra Göta älv 41 million Southern Multiple None Copenhagen Malmö Götaland Main Line Port AB Helsingborg Skåne Øresund 9 million East Coast Multiple East Ports of Stockholm Line & Sundsvall Copenhagen Copehagen Øresund 15.5 million Malmo port

CARGO THEFT TRENDS The M.O.’s that were most recorded in Sweden are by far Pilferage and Theft (Exact M.O. not defined). Almost all incidents were recorded at Unsecured Parking and the most targeted product type was Auto & Parts. Criminals have also used the M.O. Rolling Theft in Sweden

High Risk States Modus Operandi

State % Total Thefts Resources Weapons Participants Location Stockholm 31% Criminal Gangs; Sharp Objects; N/A Unsecured Parking/Unknown Skåne 27% Vehicles Bolt Cutters Västra Götaland 12%

High Risk Months High Risk Products

Month % Total Thefts Product Category % Total Thefts February 15% Electronics 1% March 13% Clothing & Shoes 1% January 12% Food & Drinks 1% Unknown Product 96%

sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 70 EMEA Sweden

PERIPHERAL RISKS Overall Risk Rating: 4

CORRUPTION & ORGANIZED CRIME Crime levels are low although there is some petty crime. Violent crime does occur; instances of gang related crime, including shootings and explosions, have been reported in Malmö and 3 Gothenburg.

WEATHER & NATURAL DISASTERS A lot of Sweden is forested—major forest fires and storms can be a threat to timber production. The vulnerability of society in the face of natural disasters is expected to increase as a result of 4 climate change, population increase, and urbanisation.

WAR & TERRORISM The overall terrorist threat to Sweden is assessed to be elevated (3). The elevated threat level includes the possibility of a terrorist 3 attack in 2018.

LABOR DISPUTES The Swedish model implies that the social partners are responsible for wage formation without any interference from the state. In collective agreements they specify the labour market 1 conditions. This way of working has avoided severe labour market disputes for a long time CARGO THEFT Unsecured Parking/Unknown is the most targeted location. Pilferage and Theft are the most used M.O.’s. In Sweden, 96% of the incidents recorded over the last twelve months were Unknown 4 Product.

CIVIL UNREST There is little to no civil unrest in Sweden. Demonstrations can 2 occur but they are seldom violent.

INFRASTRUCTURE Sweden possesses a modern transportation network, regarded as 2 a vital component of equitable wealth distribution.

GENERAL OVERVIEW Sweden is a relatively safe country, but still comes up in the top five of highest numbers of cargo crime. This is due to excellent reporting by the Swedish police. The trends that can be seen are that the majority of incidents recorded are at Unsecured Parking/Unknown location, and the most targeted product type is Unknown Product. An M.O. that was located in Sweden as well was Rolling Theft.

sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 71 EMEA United Kingdom

SUPPLY CHAIN INTELLIGENCE CENTER

AT A GLANCE The United Kingdom is a leading trading power and financial centre and is the third- largest economy in Europe after Germany and France. However, there is likely to be some negative changes linked to Brexit. The uncertainty due to the lack of a deal being in place is also creating many issues for companies due to there not being a clear picture of what will happen.

Capital London Area 242,495 km2 Population 67.6 million RISK LEVEL HIGH LOW MODERATE ELEVATED HIGH SEVERE

GDP (PPP) Inflation Rate Unemployment Rate Balance of Trade $40,158 2.1% 3.8% -£210M

Source: Trading Economics sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 72 EMEA United Kingdom

Highways Seaports The U.K. has 394,428 km of highway. Approximately 96% of the volume of all U.K. import/export trade enters the U.K. through its ports.

Highway Description Length Direction Seaport Department River Annual (km) Capacity (TEUs) M3 London-Leeds 94.3 N/S Immingham Yorkshire and Humber 59 million M5 Great Bar-Exminster 262.2 E/W the Humber M6 Rugby-Gretna 373.7 N/S Port of London Greater Thames 45 million London M1 London-Leeds 311 N/S Tees & Hartlepool North East Tees 33 million M11 London-Cambridge 88.5 N/S Felixstowe East England Orwell 17million

Railroads Month % Total Thefts United Kingdom saw the most incidents recorded in October 23% October, November and December, although there November 22% has been limited incident reports received since the December 15% beginning of 2019.

CARGO THEFT TRENDS Unsecured Parking is mostly targeted via Curtain Slashing in the U.K. There is a severe lack of secure parking in the U.K. like the rest of Europe and criminals maximise these opportunities then to target trucks when parked in unsecured places. High Risk States Modus Operandi

State % Total Thefts The most used M.O. by criminals in the U.K. is Curtain Slashing from East Midlands 32% Unsecured Parking. There have also been reports of rolling thefts and South East England 18% Deceptive Pickups have also been seen, in addition to incidents where deliveries to supermarkets have been targeted. Yorkshire and the 14% Humber Resources Weapons Participants Location High Risk Products Criminal Gangs Sharp Cutting N/A Unsecured Parking at Laybys, Objects/Knives; Roadside, Industrial Estates, Product Category % Total Thefts Bolt Cutters; Gas Unattended Rest Areas and Truck Stops; Traffic Lights; Tobacco/Auto & Parts 12% each Heavy Traffic; Warehouse/DC Food & Drinks/Home 6% each & Garden/Clothing & Shoes Electronics/Alcohol 4% each Attempted Theft 17% Unknown Product 21% sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 73 EMEA United Kingdom

PERIPHERAL RISKS Overall Risk Rating: 4

CORRUPTION & ORGANIZED CRIME Violent criminal confrontations and the use of weapons are still relatively rare, although serious incidents are possible and do occur. Most violent crimes, including those involving firearms, 2 typically occur between members of rival criminal gangs.

WEATHER & NATURAL DISASTERS The British Isles have variable weather that changes from day to day between different regions and within different regions. 3 Consequently it is very difficult to predict or forecast the weather.

WAR & TERRORISM The current threat level for international terrorism in the U.K. is 4 Severe.

LABOR DISPUTES There were 276,000 working days lost due to labour disputes, the 4 sixth lowest annual total since records began in 1891.

CARGO THEFT Most targeted location is Unsecured Parking with the use of Curtain Slashing (55%). Auto & Parts and Tobacco are the highest stolen product types. Tobacco product has been seen to be targeted from 4 trucks/vans delivering to supermarkets. Criminals have been seen to target them as they are held in heavy traffic or at traffic lights. CIVIL UNREST Given the diversity of the population, political events that take place around the globe can often precipitate demonstrations and 4 protests in the U.K., particularly in London.

INFRASTRUCTURE The quality of transport infrastructure in the U.K. is rated positively across all modes of transport. The timeliness of shipments is well above EU average. This may change depending on the outcome of 1 Brexit on 31 January 2020.

GENERAL OVERVIEW The U.K. was one of the countries in the region that had excellent reporting on cargo thefts. Unfortunately, our contact in the U.K. has been unable to share the incidents they continue to record since the beginning of 2019.

It is still relevant to say the Curtain Slashing from Unsecured Parking remains the biggest threat to cargo seen in the U.K. data that we have been able to gather.

Tobacco and Auto & Parts are the products that have been targeted the most, with 12% each, according to the data recorded by the SCIC. Tobacco product has been seen to be targeted from trucks/vans delivering to supermarkets. Criminals have been seen to target them as they are held in heavy traffic or at traffic lights.

sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 74 APAC China

SUPPLY CHAIN INTELLIGENCE CENTER

LOW MODERATE ELEVATED HIGH SEVERE

AT A GLANCE Capital Beijing China is located in the eastern part of Asia that has the world’s largest Area population (1.42 billion). The country consists of 54.7% of agricultural 9,388,211 km2 land, of which 22.3% is forest. Though ranked first in the world in total Population population, the overall density is less than that of many other countries 1.4 billion in Asia and Europe (375 people/square mile). RISK LEVEL HIGH

GDP (PPP) Inflation Rate Unemployment Rate Balance of Trade $16,186 2.8% 3.61% $34.83B

Source: Trading Economics sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 75 APAC China

Seaports Seven of the top ten largest ports in the world are located in China, with the port of Port of Shanghai being the busiest in the world.

Seaport Department River Annual Capacity (TEUs) Dalian Hebei Bohai Sea 21.93 million Ningbo Zhejiang East China Sea 1 billion Qingdao Shandong Yellow Sea 14.35 million

CARGO THEFT TRENDS China had four M.O.’s recorded: Facility Theft, Pilferage, Fuel Theft, and Vehicle Theft. Warehouse/DC was the location with most thefts recorded. The product type recorded that was mostly stolen is Electronics.

High Risk States Modus Operandi

State % Total Thefts Warehouse/DC was recorded as the most targeted location in China. Hong Kong 86% Electronics is the most frequently targeted product type. Fujian 8% Resources Weapons Participants Location Jiangsu, Sichuan, 6% Criminal Gangs; Vehicles Sharp Cutting Objects/ N/A Warehouse/DC Zhejiang Knives

High Risk Products

Product Category % Total Thefts Electronics 34% Auto & Parts 17% Alcohol 8%

High Risk Months

Month % Total Thefts October & December 17% August 12% January 10%

sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 76 APAC China

PERIPHERAL RISKS Overall Risk Rating: 4

CORRUPTION & ORGANIZED CRIME There is a risk of attack from armed criminals in remote areas. The areas bordering on Siberia, Pakistan, Kazakhstan, Vietnam, 3 Laos and Burma are poorly policed.

WEATHER & NATURAL DISASTERS China is subject to various natural disasters, including 4 earthquakes, flooding and typhoons.

WAR & TERRORISM Terrorists are likely to try to carry out attacks in China. Most attacks take place in the Xinjiang Uyghur Autonomous region and, according to the Chinese government, are carried out by Uyghur 4 separatists with possible links to the East Turkestan Islamic Movement (ETIM). LABOR DISPUTES Preventing a person from leaving a location due to a commercial or business dispute is not viewed as kidnapping by Chinese law enforcement. In some cases, labor disputes have resulted not only in protracted stoppages, but in 4 temporary detention of expatriate managers by workers demanding continued employment or enhanced severance packages. CARGO THEFT Mariners should avoid the disputed territory between China and other countries in the East China Sea. There have also been 4 incidents of piracy and armed robbery against ships in the area.

CIVIL UNREST Hong Kong is facing a political crisis amid repeated street protests and mass demonstrations. What started as a movement against a controversial law has expanded into big social unrest. 3 Bigger rights abuses and discriminatory policies have resulted in spontaneous outbursts of violence. INFRASTRUCTURE Accidents are common in China due to the poor quality of roads, 5 high volumes of traffic, and generally low driving standards.

GENERAL OVERVIEW Obtaining data from China is an arduous task. The Chinese government is known for painstakingly monitoring all forms of communication, in an attempt to avoid any negative information leaving the country.

However, there are still reports of cargo thefts in China. One method that has been reported is the use of Rolling Theft. China also deals with gang activity, so there is a great possibility of their involvement in cargo theft. Although actual numbers are hard to come by, it seems likely that a country of this magnitude, and volumes of cargo shipped, is prone to similar types of cargo theft as other parts of the globe.

sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 77 APAC India

SUPPLY CHAIN INTELLIGENCE CENTER

LOW MODERATE ELEVATED HIGH SEVERE

AT A GLANCE Capital New Delhi The IMF estimates that India will continue to grow at between 7–8% Area in 2017-2018. Spurred by further market liberalization and reforms 2,973,190 km2 addressing its ease of doing business, an active Government driven Population campaign to increase local manufacturing, grow the agricultural sector, 1.3 billion and attract greater levels of inward foreign direct investment. RISK LEVEL ELEVATED

GDP (PPP) Inflation Rate Unemployment Rate Balance of Trade $6,899 3.21% 6.0% -$13.45B

Source: Trading Economics sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 78 APAC India

Highways Seaports India has the one of the largest road India has 13 major seaports and around 200 networks across the world, spanning over non-major and intermediate ports. a total of 5.5 million km. This road network transports 64.5% of all goods in the country.

Seaport Department River Annual Highway Description Length Direction Capacity (TEUs) (km) Chennai Tamil Nadu Bay of Bengal 50.21 Million NH44 Srinagar-Kanyakumari 3,745 km N/S Jawaharlal Maharashtra Arabian Sea 62.02 Million NH48 Delhi-Chennai 2,807 km N/S Nehru Port NH16 Kolkata-Chennai 1,711 km N/S Kandla Gujarat Gulf of Kutch 105.44 Million NH27 Porbandar-Silchar 3,507 km E/W

CARGO THEFT TRENDS Criminal groups operate mostly in or near major cities and India is home to the second-largest civilian firearm stockpile. The most commonly used M.O.’s recorded were Hijacking, Theft of Full Truckload, and Facility Theft, with Unsecured Parking being the most targeted location.

High Risk States Modus Operandi

State % Total Thefts Criminals mainly seem to target trucks at Unsecured Parking, via Maharashstra & 11% Hijackings. Uttar Pradesh Karnataka 10% Resources Weapons Participants Location Odisha 9% Firearms; Firearms; N/A Unsecured Parking Criminal Gangs; Sharp Cutting Vehicles Objects

High Risk Products

Product Category % Total Thefts Food & Drinks 19% Auto & Parts 14% Electronics 13%

sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 79 APAC India

PERIPHERAL RISKS Overall Risk Rating: 4

CORRUPTION & ORGANIZED CRIME India continues to be among the most corrupt countries in the world. Police officers have been involved in crimes and have been 5 bribed to turn a blind eye.

WEATHER & NATURAL DISASTERS Floodings, landslides, cyclones, tropical storms, and earthquakes 4 can occur in India.

WAR & TERRORISM Terrorists are very likely to try to carry out attacks in India. Terrorist attacks are carried out by a number of terrorist and 4 insurgent groups.

LABOR DISPUTES Labor unrest occurs throughout India, though the reasons and affected sectors vary widely. A majority of the labor problems are the result of workplace disagreements over pay, working 4 conditions, and union representation.

CARGO THEFT Most thefts in India occur In-Transit; Hijacking is the most 4 preferred M.O.; Miscellaneous is the most targeted product type.

CIVIL UNREST Spontaneous demonstrations and incidents of violence can disrupt traffic flow and cause damage to property before police are able 4 to respond.

INFRASTRUCTURE Travel by road is dangerous. India leads the world in traffic-related 5 deaths.

GENERAL OVERVIEW Due to underreporting of cargo theft, little is known about this phenomenon in India. The data that SCIC is able to collect, shows that the majority of the incidents occur in Maharashtra and Uttar Pradesh. Facility Theft is a commonly used M.O. by criminals.

In case of a theft, assistance from the police will be difficult because police officers are often ill-equipped and lack training. Some police officers have been involved in crimes and have been bribed to turn a blind eye.

sensitech.com SCIC Global Cargo Theft Risk Assessment 2019 80 The information contained in this document is the property of Sensitech Inc. This information may not be sold, licensed, or used for business development in any capacity without the prior written consent of Sensitech Inc. Sensitech Inc. encourages recipients to use this information for cargo theft prevention activities and to share this information in its entirety with colleagues who may also benefit in a theft prevention capacity. Global maps illustration credit: Vecteezy.com. Individual country maps by FreeVectorMaps.com. sensitech.com 5 Dec 2019 @sensitech

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