Cargo Theft in Latin America. Presentation for IUMI. Jorge Pecci Saavedra AIU MLCE

Transcription

1 Cargo Theft in Latin America Presentation for IUMI Jorge Pecci Saavedra AIU MLCE

2 Outline I- Environment II- Regional statistics on cargo theft III- Hi risk Countries Mexico Argentina Brazil Colombia IV- Recommendations and conclusions

3 Cargo Theft Global Environment Epidemic problem Cargo crime cost US Economy: 12 Billion/year Inside jobs 90% of cargo theft occur while on wheels Criminal elements are moving toward cargo theft to fund other illegal activities

4 Latin America-Environment Transportation Recent Events affecting trade Mercosur/Andes Treaty/NAFTA 90% of the Inland transit goods are transported by trucks. Pacific/Atlantic Port privatization. Warehousing/Just In Time Economic crisis affecting the region

5 Latin America Environment Threat Hostile risk environment Criminals are organized and well-equipped Corruption within legal establishment Virtual impunity for offenders Alleged participation by Law Enforcement Agencies (LEAs) in criminal activity Investigation/recovery often hampered

6 Latin America Environment Scenario Recent Events High risk areas Weak law enforcement/corruption High rate of Unemployment Easy to sell in the black market Low/non-existent punishment for thieves

7 Latin America Common weak points Truck/cargo = Weak/easy prey Packaging Supervision Handling of information Inland carrier quality Logistics / Warehousing Road

8 Container Theft without tampering with the seal

9 Latin America Theft and robbery 15% 10% 5% 70% Hijacking Pilferage Warehouse Replacement Pilferage Transport Source: AIG

10 Bogota/ Santa Marta/ Barranquilla & Buenaventura Caracas/ La Guaira Quito/ Guayaquil Boarder Colombia/ Venezuela Asunción / Ciudad del Este South America Santos & Sao Paulo Buenos Aires/Cordoba & Santa Fe Rio de Janeiro Areas of major exposure to hijacking

11 Mexico High Risk Areas NUEVO LEÓN: 4% PUEBLA: 2% SINALOA: 2% JALISCO: 9% Area of Major Risk GUANAJUATO: 4% MICHOACÁN: 1% ESTADO DE MÉXICO: 14% DISTRITO 54% FEDERAL:

12 Mexico X Market claims count Source: Procuraduria General de Justica

13 Mexico 98-00: Claims Count Robbery Ordinary Risks Other

14 Mexico Claims Paid Robbery Ordinary Risks Other

15 Latin America Alleged Corruption and lack of professionalism Turning a blind eye to crime Customs Agents Customs Officers Law Enforcement: Police, Coast Guard Border Guards Courts System Government

16 Argentina Major risk areas U$ 300M per year on cargo theft Stolen cargo is typically sold before the crime Main routes with access to major cities Interior 16% Prov.of Bs. As. 50% Capital Federal 34% Source: Secretaria de Seguridad del Interior

17 Argentina Type of cargo stolen Cases Auto spares Food Electronics Pharmaceuticals

18 Brazil Cargo Theft Growth Industry Market Claim Count Market Claims Paid x 40,000

19 Brazil Cargo Theft S. Paulo 42% 65% of GDP is moved by truck U$ 400M per year National Routes of access to SP and RJ 34% Interior 7% Great S. Paulo 17% Link with the illegal drug trade Only 6 Insurance Companies Source: AIG Argentina

20 Brazil Type of cargo stolen Cases Tobacco Combustibles Food Clothing Electronics Pharmaceuticals

21 Colombia High Risk Area Mid Risk Area Low Risk U$ 100M/Year in Cargo Theft Guerrilla involvement cases cases Food, Clothing, and Drugs

22 Colombia: Guerrilla attacks Guerrilla & Paramilitary During transit During warehousing Hijacking and theft Deliberate fires Reprisals

23 Colombia Guerrilla attack

24 Argentina and Mexico Similarities Pirates of the Roads Some source of security 5% Armed custody/ STS 2% No security 93% 65% of hijacks are suffered by sub contracted trucks 100% of trucks are recovered 6% of cargo is recovered

25 Hijacking Modus Operandi Argentina/Venezuela/ Colombia/Mexico Where: Buenos Aires/Bogota/Mexico DF, Caracas-Valencia 60/70% of thefts. When: Mostly at night and at dawn. How: Interception of trucks with a fast car. 2/3 armed criminals Kidnapping of driver 2/3 hours in a separate car. No physical aggression to driver. Anonymous call reporting position of EMPTY truck Brazil Where: Sao Paulo 60% and Rio de Janeiro 25% of theft. Including Highways When: At any time How: High tech theft: Communications/trained resources/automatic weapons. More than 2 cars to intercept the truck or convoy. Generally more aggression toward the driver Truck is not always recovered

26 Latin America How to reduce the exposure Partnership between shipper and carrier Conscientious analysis Cost effective solutions Tailormade recommendations True involvement/proactive participation

27 Lets review some basic guidelines Important Note: The following are just a few basic guidelines with the sole purpose of giving you an example and should not be considered as effective generic recommendations.

28 Import/Export Shipments ISO Containers On board: Full container vessels FCL (full container loads) Stowed door to door Under deck Use of locking bars Ashore: Short periods of storage Container stacked high up Stowed door to door Next to security control/house Far away from fences Use of locking bars

29 Locking Bars Help but are not the solution

30 Packaging Considerations External packaging Unitized No advertising Security Tapes/straps

31 Security tapes and straps Activated

32 Handling of information 80/85 percent of cargo theft involves inside information Information distribution The chosen road ID Cards Background checks

33 Inland carrier Know your transporters! Solvent carriers Create a commercial commitment Avoid sporadic contracting Demand modern units Communication systems

34 Examples

35 Drivers/Logistic Personnel Don t hire thieves! Experienced drivers Background checks Routes should be altered Avoid subcontracting

36 Warehousing/ Distribution Centers The main source of information Specific areas for loading/discharge Access control. Waiting areas for drivers/communication Background checks

37 Route, stops and time schedule Pre-determined Alternative routes Main/Toll roads Safe stopping places Two drivers during long-haul

38 Armed Guards Deterrant or attraction? Legally licensed Background checks Weapons/Staff training Adequate vehicles Communication

39 Electronic Tracking Devices Keep an eye on your cargo! For logistical and security reasons Accurate position GPS Data communication Panic button and automatic system triggers Effective contingency plan!!

40 Conclusions Theft losses are preventable under dynamic approach Inside jobs - main concern Identification of problem and tailor-made recommendations Implementation of a comprehensive program Background checks are essential Follow up To be cunning is the best line of defense