Q2-2017

Cargo Theft Report SUPPLY CHAIN INTELLIGENCE CENTER

Mexico Formerly known as FreightWatch International

Statistical Analysis

The recording and analysis of cargo thefts throughout allows the SensiGuard Supply Chain Intelligence Center (SCIC) to assess levels of risk in the country. These statistics provide a broad outlook on the leading areas of risk in Mexico.

The following map illustrates the levels of risk from low to severe in Mexico.

The highest risk areas for cargo theft are concentrated in the western, central, and southeastern regions of Mexico, primarily in the states of , Michoacan, Puebla, Guanajuato, Veracruz, and State of Mexico.

sensitech.com Cargo Theft by Region Cargo Theft by Product Type

Owing to the concentration of business activity in these areas, Cargo thefts identified by the SCIC in Mexico are shown in the 94% of freight theft incidents in the country are concentrated in following chart. the Central (50%), West (33%), and Southeast (11%) regions. Mexico — Cargo Theft by Mexico — Cargo Theft by Region Product Type, Q2-2017

Q2-2017 9% Food & Drinks 31% 9% Fuel 25% 33% 25% Building & Industrial 9%

8% Electronics 9% Central 50% Chemicals 8% West 33% Auto & Parts 7% Southeast 11% Alcohol 3% 7% Northeast 4% Personal Care 2% Northwest 2% 3% Pharmaceuticals 2% 11% Clothing & Shoes 2% Home & Garden 1% 50% 31% 2% Tobacco 1% 4% 2% 1% 1% 2% The products most often stolen are Food & Drinks (31%), Fuel (25%), Building & Industrial (9%), and Electronics (9%). Cargo Theft by State The following is a list of the top ten states with the highest cargo Cargo Theft by Location and Product Type theft rate in Q2-2017. The following graphs show the distribution of the number of Mexico — Top Ten States for thefts by location and type of event. Cargo Theft, Q2-2017 Mexico — Cargo Theft by Location 140 Q2-2017 120 100 80 79% In-Transit 79% Facility Lot 17% 60 Roadside 3% 40 Fake Police 1% 20 17% 0 la a z a an bl c e cru xc a a Pu Jalisco ho najuato er Oaxaca Tla c a V 3% of Mexico Queretaro amaulipas Mi Gu T 1%

State

Tlaxcala 130 22% Michoacan 108 18% Puebla 106 18% Guanajuato 67 11% Veracruz 46 8% State of Mexico 33 6% Queretaro 20 3% Jalisco 16 3% Oaxaca 12 2% Tamaulipas 9 2%

sensitech.com Cargo Theft Report: Mexico Q2-2017 2 Mexico — Cargo Theft by Event Type Factors Involved in Cargo Theft Q2-2017 Criminogenic areas: In Mexico, two criminogenic areas have been identified with a high density of criminals specialized in cargo theft (where multiple ongoing criminal patterns have

77% Hijacking 77% occurred, maximized through three criminal behaviors): theft Warehouse Burglary 17% of hydrocarbons; rail theft; and cargo theft on roadways and Rail Theft 6% highways. All of the above are characterized as progressive crimes due to their capacity to generate other criminal 17% behaviors.

6% • First Criminogenic Area. Occuring in the State of Mexico, Tlaxcala, Puebla, and Veracruz (MEX-150D) and its connections with the Circuito Exterior Mexiquense (57D), In 79% of cases, the theft occurs while in-transit, with driver México-Zacatepec (MEX-136D) and Arco Norte (M40D), kidnapping being the modus operandi (M.O.) most used by where there are seven hot spots that represent 34% of criminals. incidents (over one third of the cargo thefts occurring nationally).

• Second Criminogenic Area. Located in the lowlands (Bajio) region in the states of Michoacan, Guanajuato, and Jalisco, between the Queretaro-Zacatecas highway (45D), Maxipista (15D) and Tonala-Zapopan (MEX-23), representing 20% of cargo thefts in the country during Q2-2017.

High Risk Highways for Cargo Theft

The highways considered high risk in Mexico are listed in the following chart.

CARGO THEFT TRENDS BY HIGHWAY — 2017 Risk Level Rank Highway Crime Density Q1/Q2 Direction of Crime Trends SEVERE 1 Mexico-Veracruz Hwy (MEX-150D) 19% -48%  HIGH 2 Mexico-Zacatepec Hwy (MEX-136) 10% 135%  3 Queretaro-Zacatecas Hwy (MEX-45D) 10% -31%  4 Maxipista (MEX-15D) 9% 96%  5 Mexico-Saltillo Hwy (MEX-57D) 6% 62%  ELEVATED 6 Arco Norte Hwy (MEX-M40D) 2% -18%  7 Mexico Ring Road (CEM) 2% -50% 

sensitech.com Cargo Theft Report: Mexico Q2-2017 3 Mexico-Veracruz Highway (MEX-150D)

This highway represents 19% of cargo thefts in Mexico. The sections of this highway with the highest cargo theft rates are San Martin Texmelucan-Amozoc and Amozoc-Esperanza, together comprising 71% of total thefts.

2017 CARGO THEFT TRENDS • MEXICO-VERACRUZ HWY (MEX-150D) Frequency of Crime Direction of Risk Level State Highway Section Q1/Q2 Thefts Q1 Thefts Q2 Crime Trend ELEVATED Mex. City Metro Area Iztapalapa-San Marcos 8 1 -76%  HIGH Puebla San Marcos-San Martin Texmelucan 1 7 108%  SEVERE Puebla San Martin Texmelucan-Amozoc 43 45 102%  SEVERE Puebla Amozoc-Esperanza 60 35 13%  HIGH Veracruz Esperanza-Fortin 7 9 148%  HIGH Veracruz Fortin-Tinaja 21 12 10%  ELEVATED Veracruz Tinaja-Veracruz 76 3 -92% 

Mexico-Veracruz Hwy (MEX-150D) Modus Operandi % Trucks Used to Use of State Highway Section Method Criminals’ Vehicles Participants Thefts Transport Stolen Goods Violence San Martin Texmelucan-Amozoc 40% 6–8 Puebla Amozoc-Esperanza 31% Veracruz Fortín-Tinaja 11%

Patterns of Criminal Behavior (MEX-150D)

Mexico — Cargo Theft by Day Mexico — Cargo Theft by Time of Day MEX-150D, Q2-2017 MEX-150D, Q2-2017

25% 37%

20% Early Morning (0:00-6:00 hrs) 9% Morning (6:00-12:00 hrs) 27% 15% Afternoon (12:00-18:00 hrs) 37% Evening (18:00-24:00 hrs) 27% 10% 27%

5% 27%

0% i 9% e d Fr Tu Thu Sat Sun Mon We

sensitech.com Cargo Theft Report: Mexico Q2-2017 4 Mexico — Cargo Theft by Product Type Mexico — Cargo Theft by Truck Type MEX-150D Q2-2017 MEX-150D Q2-2017

9% Food & Drinks 35% 24% Fuel 24% 8% Auto & Parts 9% 74% Tractor Trailer 74% Electronics 8% Box Truck 17% 6% Alcohol 6% Torton 7% Pharmaceuticals 5% 17% Tanker Truck 2% 5% Miscellaneous 3% Building & Industrial 3% 3% Chemicals 3% 3% Clothing & Shoes 2% 3% 7% 35% Home & Garden 1% Personal Care 1% 2% 1% 1% 2%

Mexico-Zacatepec Highway (MEX-136)

This highway represents 10% of cargo thefts in Mexico. The sections of this highway with the highest cargo theft rates are Calpulalpan- and Apizaco-, together comprising 80% of total thefts.

2017 CARGO THEFT TRENDS • MEXICO-ZACATEPEC HWY (MEX-136) Frequency of Crime Direction of Risk Level State Highway Section Q1/Q2 Thefts Q1 Thefts Q2 Crime Trend ELEVATED State of Mexico Texcoco-Calpulalpan 2 1 -50%  HIGH Tlaxcala Calpulalpan-Apizaco 12 15 25%  SEVERE Tlaxcala Apizaco-Cuapiaxtla 10 34 240%  HIGH Puebla Cuapiaxtla-Zacatepec 2 11 450% 

Mexico-Zacatepec Hwy (MEX-136) Modus Operandi % Trucks Used to Use de Entitad Highway Section Method Criminals’ Vehicles Participants Thefts Transport Stolen Goods Violencia Calpulalpan-Apizaco 25% 6–8 Tlaxcala Apizaco-Cuapiaxtla 56% Cuapiaxtla-Zacatepec 18%

sensitech.com Cargo Theft Report: Mexico Q2-2017 5 Patterns of Criminal Behavior (MEX-136)

Mexico — Cargo Theft by Day Mexico — Cargo Theft by Time of Day MEX-136, Q2-2017 MEX-136, Q2-2017 25%

20% 20% Early Morning (0:00-6:00 hrs) 20% Morning (6:00-12:00 hrs) 40% 15% 40% Afternoon (12:00-18:00 hrs) 20% Evening (18:00-24:00 hrs) 20% 10%

20% 5%

0% i e d 20% Fr Tu Thu Sat Sun Mon We

Mexico — Cargo Theft by Product Type Mexico — Cargo Theft by Truck Type MEX-136 Q2-2017 MEX-136 Q2-2017

11% 8% Fuel 25% Food & Drinks 25% 30% 8% Chemicals 11% Tractor Trailer 55% Building & Industrial 8% Box Truck 30% 25% Alcohol 8% 8% Torton 11% Electronics 8% Tanker Truck 2% Auto & Parts 6% Flatbed 2% Personal Care 6% 6% 55% Pharmaceuticals 3% 11% 6%

3% 25% 2% 2%

Queretaro-Zacatecas Highway (MEX-45D)

This highway represents 10% of cargo thefts in Mexico. The sections of this highway with the highest cargo theft rates are Celaya- Irapuatoand Irapuato-Salamanca, together comprising 68% of total thefts.

2017 CARGO THEFT TRENDS • QUERETARO-ZACATECAS HWY (MEX-45D) Frequency of Crime Direction of Risk Level State Highway Section Q1/Q2 Thefts Q1 Thefts Q2 Crime Trend ELEVATED Queretaro-Celaya 38 2 -95%  SEVERE Celaya-Salamanca 22 17 -23%  Guanajuato SEVERE Salamanca-Irapuato 17 15 -12%  HIGH Irapuato-Leon 1 13 1200% 

sensitech.com Cargo Theft Report: Mexico Q2-2017 6 Queretaro-Zacatecas Hwy (MEX-45D) Modus Operandi % Trucks Used to Use of State Highway Section Method Criminals’ Vehicles Participants Thefts Transport Stolen Goods Violence Celaya-Salamanca 36% 3–5 Guanajuato Salamanca-Irapuato 32% Irapuato-Leon 28%

Patterns of Criminal Behavior (MEX-45D)

Mexico — Cargo Theft by Day Mexico — Cargo Theft by Time of Day MEX-45D, Q2-2017 MEX-45D, Q2-2017 25%

20% 16% Early Morning (0:00-6:00 hrs) 67% Morning (6:00-12:00 hrs) 16% 15% Afternoon (12:00-18:00 hrs) 17% 67% 10%

17% 5%

0% i e d Fr Tu Thu Sat Sun Mon We

sensitech.com Cargo Theft Report: Mexico Q2-2017 7 Mexico — Cargo Theft by Product Type Mexico — Cargo Theft by Truck Type MEX-45D Q2-2017 MEX-45D Q2-2017

16% 11% Electronics 23% Auto & Parts 21% 84% 5% Food & Drinks 16% Tractor Trailer 84% Chemicals 11% 5% Box Truck 8% Building & Industrial 5% Torton 8% 21% Fuel 5% 5% Miscellaneous 5% Clothing & Shoes 5% 5% 8% Tobacco 5% 5% Personal Care 2% Alcohol 2% 8%

23% 2% 2%

Maxipista (MEX-15D)

This highway represents 9% of cargo thefts in Mexico. The sections of this highway with the highest cargo theft rates are Atlacomulco-Copandaro and Copandaro-La Barca, together comprising 96% of total thefts.

2017 CARGO THEFT TRENDS • MAXIPISTA (MEX-15D) Frequency of Crime Direction of Risk Level State Highway Section Q1/Q2 Thefts Q1 Thefts Q2 Crime Trend SEVERE Atlacomulco-Copandaro 8 22 175%  SEVERE Michoacan Copandaro-La Varca 13 23 77%  ELEVATED La Barca-Zapotlanejo 0 2 100% 

Maxipista (MEX-15D) Modus Operandi % Trucks Used to Use of State Highway Section Method Criminals’ Vehicles Participants Thefts Transport Stolen Goods Violence Atlacomulco-Copandaro 47% 3–5 Michoacan Copandaro-La Barca 49%

sensitech.com Cargo Theft Report: Mexico Q2-2017 8 Patterns of Criminal Behavior (MEX-15D)

Mexico — Cargo Theft by Day Mexico — Cargo Theft by Time of Day MEX-15D, Q2-2017 MEX-15D, Q2-2017 25% 14%

20% Early Morning (0:00-6:00 hrs) 57% Afternoon (12:00-18:00 hrs) 14% 15% Evening (18:00-24:00 hrs) 29%

10% 29% 57%

5%

0% i e d Fr Tu Thu Sat Sun Mon We

Mexico — Cargo Theft by Product Type Mexico — Cargo Theft by Truck Type MEX-15D Q2-2017 MEX-15D Q2-2017

14% 17% Chemicals 33% Food & Drinks 25% 25% Fuel 17% Box Truck 56% 12% Building & Industrial 17% Tractor Trailer 14% Electronics 8% Torton 12% Tanker Truck 12% 17% Flatbed 6% 12% 56%

8% 6% 33%

Mexico-Saltillo Highway (MEX-57D)

This highway represents 6% of cargo thefts in Mexico. The section of this highway with the highest cargo theft rates is San Juan del Rio-Queretaro, comprising 62% of total thefts.

2017 CARGO THEFT TRENDS • MEXICO-SALTILLO HWY (MEX-57D) Frequency of Crime Direction of Risk Level State Highway Section Q1/Q2 Thefts Q1 Thefts Q2 Crime Trend HIGH State of Mexico Naucalpan-Tepotzotlan 11 3 -73%  ELEVATED Tlaxcala Tepotzotlan-San Juan del Rio 1 1 0%  SEVERE Tlaxcala San Juan del Rio-Queretaro 4 21 425%  HIGH Puebla Queretaro-Santa Maria del Rio 0 4 100%  HIGH Puebla Santa Maria del Rio-Entronque Matehuala 2 3 50%  ELEVATED Tlaxcala Entronque Matehuala-Matehuala 1 2 100%  ELEVATED Tlaxcala Matehuala-Entronque San Roberto 2 0 -100% 

sensitech.com Cargo Theft Report: Mexico Q2-2017 9 Mexico-Saltillo Hwy (MEX-57D) Modus Operandi % Trucks Used to Use of State Highway Section Method Criminals’ Vehicles Participants Thefts Transport Stolen Goods Violence State of Mex. Naucalpan-Tepotzotlan 9% 3–5 San Juan del Rio-Queretaro 62% Queretaro Queretaro-Santa Maria del Rio 12% San Luis Santa Maria del Rio-Entronque 9% Potosi Matehuala sensitech.com Cargo Theft Report: Mexico Q2-2017 10 Patterns of Criminal Behavior (MEX-57D)

Mexico — Cargo Theft by Day Mexico — Cargo Theft by Time of Day MEX-57D, Q2-2017 MEX-57D, Q2-2017 40%

35% 60% 30% Early Morning (0:00-6:00 hrs) 20% 25% Afternoon (12:00-18:00 hrs) 60% Evening (18:00-24:00 hrs) 20% 20% 15% 10% 20% 5% 0% i e d 20% Fr Tu Thu Sat Sun Mon We

Mexico — Cargo Theft by Product Type Mexico — Cargo Theft by Truck Type MEX-57D Q2-2017 MEX-57D Q2-2017

10% 14% Food & Drinks 27% 91% Building & Industrial 17% 10% Clothing & Shoes 14% Tractor Trailer 91% Electronics 10% Torton 6% Chemicals 10% Box Truck 3% 17% Auto & Parts 10% 10% Tobacco 3% Home & Garden 3% 3% Alcohol 3% 3% Fuel 3% 6% 3% 3% 3% 27%

Arco Norte Highway (MEX-M40D)

This highway represents 2% of cargo thefts in Mexico. The section of this highway with the highest cargo theft rates is Calpulalpan- San Martin Texmelucan, comprising 93% of total thefts.

2017 CARGO THEFT TRENDS • ARCO NORTE HWY (MEX-M40D) Frequency of Crime Direction of Risk Level State Highway Section Q1/Q2 Thefts Q1 Thefts Q2 Crime Trend ELEVATED Hidalgo Tepeji de Rio-Atitalaquia 4 0 -100%  HIGH Hidalgo Atitalaquia-Villa de Tezontepec 1 1 0%  ELEVATED State of Mexico Villa de Tezontepec-Calpulapan 1 0 -100%  SEVERE Tlaxcala Calpulapan-San Martin Texmelucan 11 13 18% 

sensitech.com Cargo Theft Report: Mexico Q2-2017 11 Arco Norte Hwy (MEX-M40D) Modus Operandi % Trucks Used to Use of State Highway Section Method Criminals’ Vehicles Participants Thefts Transport Stolen Goods Violence Tlaxcala Calpulalpan-San Martin Texmelucan 93% 6–8

Hidalgo Atitalaquia-Villa de Tezontepec 7%

Patterns of Criminal Behavior (MEX-M40D)

Mexico — Cargo Theft by Day Mexico — Cargo Theft by Time of Day MEX-M40D, Q2-2017 MEX-M40D, Q2-2017 25%

20% Early Morning (0:00-6:00 hrs) 13% 54% 20% Morning (6:00-12:00 hrs) 54% 15% Afternoon (12:00-18:00 hrs) 20% Evening (18:00-24:00 hrs) 13% 10%

5% 13%

0% i e d 13% Fr Tu Thu Sat Sun Mon We

sensitech.com Cargo Theft Report: Mexico Q2-2017 12 Mexico — Cargo Theft by Product Type Mexico — Cargo Theft by Truck Type MEX-M40D Q2-2017 MEX-M40D Q2-2017

20% Fuel 50% Food & Drinks 20% Chemicals 20% 36% Tractor Trailer 55% Building & Industrial 10% Box Truck 36% 20% Tanker Truck 9%

55% 50%

10% 9%

Mexico Ring Road (CEM)

This highway represents 2% of cargo thefts in Mexico. The section of this highway with the highest cargo theft rates is Tultitlán- Conmex, comprising 62% of total thefts.

2017 CARGO THEFT TRENDS • MEXICO RING ROAD (CEM) Frequency of Crime Direction of Risk Level State Highway Section Q1/Q2 Thefts Q1 Thefts Q2 Crime Trend HIGH Cuautitlan-Tultitlan 2 03 50%  ELEVATED Tultitlan-Tultepec 4 1 -75%  SEVERE Tultepec-Conmex 6 8 33%  State of Mexico ELEVATED Conmex-Nabor Carrillo 7 0 -100%  ELEVATED Nabor Carrillo-Texcoco 7 0 -100%  ELEVATED Texcoco-Chalco 0 1 100% 

sensitech.com Cargo Theft Report: Mexico Q2-2017 13 Mexico Ring Road (CEM) Modus Operandi % Trucks Used to Use of State Highway Section Method Criminals’ Vehicles Participants Thefts Transport Stolen Goods Violence Tultepec-Conmex 62% 6–8 State of Mexico Cuautitlán-Tultitlan 23%

Patterns of Criminal Behavior (CEM)

Mexico — Cargo Theft by Day Mexico — Cargo Theft by Time of Day CEM, Q2-2017 CEM, Q2-2017 60% 16%

50% 17% Early Morning (0:00-6:00 hrs) 50% 40% Morning (6:00-12:00 hrs) 16% Afternoon (12:00-18:00 hrs) 17% 30% Evening (18:00-24:00 hrs) 17%

20%

50% 17% 10%

0% i e d Fr Tu Thu Sat Sun Mon We

Mexico — Cargo Theft by Product Type Mexico — Cargo Theft by Truck Type CEM Q2-2017 CEM Q2-2017

23% Food & Drinks 46% 27% Electronics 23% 8% Home & Garden 8% Tractor Trailer 55% Chemicals 8% Box Truck 27% Clothing & Shoes 8% Torton 18% 8% Pharmaceuticals 7%

55% 8% 46% 18%

7%

Recommendations

SensiGuard Security Services recommends that drivers stay alert, especially in high-risk areas and areas without reception. Drivers must inform their monitoring office of all risky situations that arise, such as sightings of suspicious individuals and vehicles.

Furthermore, we recommend providing training in security issues to drivers, conducting transport operation during daylight hours, making sure the freight vehicle in which the merchandise is transported is in good mechanical condition, and maintaining constant monitoring to identify incidents and react immediately.

Some incidents of theft have occurred when vehicles stop at places not considered safe (cachimbas and huachicoleras); when vehicles detour from the planned route, whether at the driver’s initiative or due to criminal activity; when vehicles leave the yard; and when vehicles arrive at the destination.

Accordingly, we advise that drivers only stop at locations that are previously designated as low-risk, and not make any detours from the authorized route.

sensitech.com Cargo Theft Report: Mexico Q2-2017 14 About SensiGuard Security Services Data About SensiGuard Security Services Unless otherwise noted, the theft statistics in this SensiGuard Security Services is a leading provider of global assessment are derived from data collected by the logistics security services, offering tracking and monitoring SensiGuard Supply Chain Intelligence Center and solutions that provide organizations with cargo security, other information collected from reliable sources. The transparency and supply chain integrity from origin to Intelligence Center captures cargo theft and supply chain risk destination. Using real-time visibility technology and layered data from numerous sources across the globe. These include, solutions, organizations can actively monitor their cargo but are not limited to, the databases of SensiGuard Security anywhere in the global supply chain to mitigate the risks Services, its customers, law enforcement agencies, industry associated with theft, spoilage, counterfeiting and more. With organizations, insurance industry sources, and news reports. operations across the globe, SensiGuard is uniquely positioned This report offers an analysis of the data collected during the to deliver services regionally across diverse supply chains. second quarter of 2017, providing insight into cargo theft and supply chain risk across the globe. SensiGuard Security Services is part of Sensitech Inc., a leading provider of supply chain visibility solutions. Sensitech is focused Please note that cargo theft goes largely unreported; as such, on delivering supply chain visibility solutions that track, monitor total theft figures for a particular country or region are likely and protect products for global leaders in the food, life sciences, higher than stated. In addition, global cargo theft circumstances consumer goods, and industrial markets. Our solutions are and risks change, sometimes frequently and quickly, and in focused in three key areas: quality and compliance, supply ways that may make the facts and opinions expressed here no chain security, and logistics performance management. longer valid. Therefore, the extent to which organizations rely on Quality and compliance solutions address temperature-sensitive, the information provided in this assessment should be solely at complex supply chains focused on delivering the highest their discretion. quality possible, while our supply chain security solutions help to mitigate risks associated with theft, diversion and chain of custody. Sensitech’s logistics performance solutions deliver origin-to-destination, real-time transparency to any in-transit journey. Sensitech Inc. is an ISO 9001:2008 company, headquartered in Beverly, Mass., with more than 35 sales, service and distribution locations around the world. Sensitech is a part of UTC Climate, Controls & Security, a unit of United Technologies Corp., a leading provider to the aerospace and building systems industries worldwide.

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