SUPPLY CHAIN INTELLIGENCE CENTER Global Cargo Theft Risk Assessment 2019 5 4 LOW sensitech.com 3 2 1 0 United States Canada MODERATE Argentina Bolivia Brazil North & South America Chile Colombia Guatemala ELEVATED Mexico Panama Paraguay Peru INTELLIGENCE CENTER SU PPL Puerto Rico Y CHAI N Venezuela HIGH Belgium France Germany Italy The Netherlands SEVERE EMEA Russia South Africa Spain Sweden United Kingdom China AP a AC Indi 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