SUPPLY CHAIN INTELLIGENCE CENTER Global Cargo Theft Risk Assessment 2018 5 4 LOW sensitech.com 3 2 1 0 United States Canada MODERATE Mexico Paraguay Bolivia Colombia Peru Chile ELEVATED Argentina Guatemala Panama INTELLIGENCE CENTER Venezuela SUPPLY CHAIN Brazil HIGH Belgium France Germany Italy Russia SEVERE South Africa Spain Sweden The Netherlands United Kingdom China India Greetings from the SensiGuard ™ Table of Contents Supply Chain Intelligence Center (SCIC). North & South America How quickly time flies! Fall is upon United States............................................................................3 us, which means it is time for Canada ....................................................................................5 our annual Global Cargo Theft Risk Assessment. This 2018 Mexico .....................................................................................7 edition has undergone a number Paraguay ..................................................................................9 of formatting changes to simplify Bolivia .....................................................................................11 the information we are providing, Colombia ................................................................................13 and make it more digestible. We believe the new format allows Peru .......................................................................................15 for easy navigation and the ability to focus quickly on regions or countries of interest to the reader. Chile .......................................................................................17 Argentina ................................................................................19 Our global team of experienced supply-chain security experts Guatemala ..............................................................................21 have worked hard to identify supply chain risk around the world Panama ..................................................................................23 and summarize it into this comprehensive report. Our goal is to provide you with a high-level overview of issues that affect Venezuela ...............................................................................25 supply chains around the world. This report outlines the risk of Brazil ......................................................................................27 cargo theft on a global level, highlighting countries where risks EMEA are particularly high, and assists industry decision makers in Belgium ..................................................................................29 determining their supply chain security needs. France ....................................................................................31 Happy Reading! Germany ................................................................................33 Italy ........................................................................................35 Russia ....................................................................................37 South Africa............................................................................39 Spain ......................................................................................41 Sweden ..................................................................................43 Scott Martino The Netherlands .....................................................................45 Director, Global Intelligence Sensitech Inc. United Kingdom .....................................................................47 APAC China ......................................................................................49 India .......................................................................................51 sensitech.com SCIC Global Cargo Theft Risk Assessment 2018 2 North & South America United States At a Glance SUPPLY CHAIN INTELLIGENCE CENTER The United States (U.S.) covers 3.8 million square miles of the North American continent, stretching from the Atlantic Ocean in the east to the Pacific Ocean in the west, and bordered by Canada on the north and Mexico on the south. It has numerous land ports of entry along the southern border with Mexico and the northern border with Canada, which make for a large and diverse supply chain infrastructure. Capital Washington, D.C. Area 3.8 million mi.2 Population 325.7 million RISK LEVEL: HIGH LOW MODERATE ELEVATED HIGH SEVERE GDP (PPP) Inflation Rate Unemployment Rate Balance of Trade $19.39T 2.9% 3.9% -$46,348M Source: Trading Economics HIGHWAYS SEAPORTS The highway system in the United States consists The United States has 926 coastal, Great Lakes, of over 164,000 miles of roadways and is the and inland ports which can handle 82,000 vessels largest highway system in the world. and $4.6 trillion in economic 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 The rail system in the U.S. spans over 140,000 mi., and carries over two billion tons of freight each year. Railway Region Border Connections Seaport Connections Union Pacific Western U.S. 2 6 BNSF Western & Central U.S. 5 8 CSX Eastern U.S. 3 17 Norfolk Southern Eastern U.S. 3 24 sensitech.com SCIC Global Cargo Theft Risk Assessment 2018 3 North & South America United States Cargo Theft Trends Cargo theft is centralized around the intersection of major seaports or rail depots and interstate highways, such as in Southern California, Atlanta, Florida, East Texas, Chicago and New England. HIGH RISK HIGH RISK MODUS OPERANDI STATES PRODUCTS Thefts are primarily perpetrated when a shipment is stationary and unattended and tend to target high value merchandise State % Total Product % Total or non-serialized products for ease of liquidation. Typically the Thefts Category Thefts entire tractor and/or trailer are stolen while unattended at a truck California 27% Electronics 19% stop or rest area. Pilferages have been recorded outside of Texas 16% Home & Garden 16% destination facilities and can be indicators of a larger scale theft Florida 12% Food & Drinks 15% to come. New Jersey 9% Building & 13% Resources Weapons Location Georgia 8% Industrial Miscellaneous 10% Technology; N/A Truck Stops; Rest Areas; Inside Information Unattended Peripheral Risks Cargo Theft Risk Rating: 4 While organized crime dominates the cargo theft landscape, corruption CORRUPTION & ORGANIZED CRIME 3 stemming from these organizations is minimal. The U.S.’s varied geography and climate make for a wide variety of weather and natural disaster events. Many examples have occurred in the previous WEATHER & NATURAL DISASTERS 4 twelve months. There is no war and little to no large scale terrorism events that disrupt the WAR & flow of cargo. TERRORISM 1 While uncommon, labor disputes at key freight hubs such as sea and airports have caused disruption in the past and have the ability to do so in the future. LABOR DISPUTES 2 While not as prolific as in other areas of the world, the sophistication with CARGO THEFT 4 which the U.S. cargo thief operates raises the risk level. While protests and demonstrations are frequent, they rarely block the flow of cargo for any extended time. CIVIL UNREST 2 Despite some areas of disrepair, the U.S. has the largest and most expansive INFRASTRUCTURE 2 national highway system in the world. General Overview Over the last 12 months, the SCIC has observed an increase in thefts of Electronics and Mixed Retail loads, as well as advanced theft methods such as Fictitious Pickups and Facility Thefts. The organized cargo thief in the U.S. will continue to be risk averse as more states adopt cargo theft specific legislation. As newer cargo thieves are trained in these advanced methods, the SCIC expects these increases to continue. The outcome of NAFTA renegotiations is unlikely to have much of an impact on cargo theft trends or hotspots within the United States as most theft activity is not focused around land border crossings. sensitech.com SCIC Global Cargo Theft Risk Assessment 2018 4 North & South America Canada At a Glance SUPPLY CHAIN INTELLIGENCE CENTER Canada covers 3.9 million square miles to the north of the United States, with whom it shares its only land border. It is bordered on the west by the Pacific Ocean and on the east by the Atlantic Ocean. Its physical geography limits the international flow of cargo to a few major seaports and land border crossings with the United States. Capital Ottawa, ON Area 3.9 million mi.2 Population 37.1 million RISK LEVEL: HIGH LOW MODERATE ELEVATED HIGH SEVERE GDP (PPP) Inflation Rate Unemployment Rate Balance of Trade $1.847T 3% 5.8% -$626M CAD Source: Trading Economics HIGHWAYS SEAPORTS The highway system in Canada is maintained The 18 ports that make up the National Ports majority by the provinces, consists of over System in Canada handle more than 310 million 38,021 kilometers of roadways, including the tons valued at over $400 million each year. Trans-Canada Highway, which travels through all 10 Canadian provinces. The federal government has little authority over Seaport Province Coast Annual the maintenance or expansion of roads and highways as this