Moderator: Paul J. Kozacky, Esq., Kozacky Weitzel McGrath, P.C., Chicago, Illinois

Transcription

1 LOSS PREVENTION & MITIGATION OF DAMAGES - BEST PRACTICES - Moderator: Paul J. Kozacky, Esq., Kozacky Weitzel McGrath, P.C., Chicago, Illinois Panelists: Tom Blanck, Chainalytics, Minneapolis, Minnesota Daniel I. Hill, ABF FreightSM An ArcBest Company, Ft. Smith, Arkansas John McNamee, Sr., GEODIS, Brentwood, Tennessee T&LC 43rd Annual Conference March 20-22, 2017 Henderson, Nevada

2 Overview IT IS BETTER TO AVOID DAMAGES THAN TO MITIGATE THEM Logistics & Packaging Theft Avoidance Salvage Knowledge vs. Wisdom

3 LOGISTICS Packaging Material handling Routine hazards shocks, vibration and compression Potential weather conditions Weights and measurements Wait periods

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5 Is your packaging up to the task?

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10 Port slowdown? Strike? Bankruptcy?

11 THEFT Avoidance Fictitious pickups Cyber cargo crime Tracking devices Background checks Law Enforcement Personnel

12 Western States Cargo Theft Association North Chairman Sgt. Ward Radelich Office: Cell: Northern California Western State Cargo Theft Association - South Chairman Wesley Rust Wesley.Rust@yrcw.com Cell: Southern California Southwest Transportation Security Council (SWTSC) Chairman JJ Coughlin jj@swtsc.com Cell: TX/NM/OK/AR/LA

13 Mid-West Cargo Security Council Chairman Nick Erdman Illinois Eastern Regional Transportation Security Council Chairman Kurt Duesterdick Office: NJ/NY Southeastern Transportation Security Council (SETSC) President Bob Hastings GA/FL/AL/MS Virginia Carolinas CSC Chairman Mike Johnston Cell VA/SC/NC Mid-South Cargo SC (MSCSC) Chairman Brad Clement Cell: TN/MS/AR

14 California Highway Patrol Cargo Theft Interdiction CTIP Northern Division Oakland Sergeant Ward Radelich Office: Cell: California Highway Patrol Cargo Theft Interdiction CTIP Southern Division Los Angeles ( ) Sergeant Peter Lee Office: (310) Cell: Illinois State Police Cargo Task Force Det. Chris Linares MDPD CTTF Lt. Zach Larson GBI Sgt John Cannon New Jersey State Police Cargo Theft and Robbery Unit Lt. Ron Micucci Memphis Task Force TAMCATS Drew Hardin - MPD james.hardin@memphistn.gov Florida Statewide Cargo Theft Task Force (FHP) LT. Tony Bartolome bartolome.tony@fhp.hsmv.state.fl.us Corporal David Vincent vincent.david@fhp.hsmv.state.fl.us

15 Texas case study

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17 Cargo theft looms as railroad problem By William P. Diven September 11, 2015 RELATED TOPICS: FREIGHT CLASS 1 FREIGHT RAILROADS BNSF REGULATION WEST CRIME While the public fixates on burning oil trains and security agencies contemplate terror attacks, a criminal underclass continues to do what it does best: steal railroad cargo.

18 NBC 5 Investigates: DFW Leads Nation in Cargo Thefts By Scott Friedman (February 11, 2016) (Found at investigations/dfw-leads-nation-in- Cargo-Theft.html) An NBC 5 Investigation found Dallas-Fort Worth is now one of the worst spots in the country for cargo theft. Cargo theft is costing this country $25 billion every year. - National Insurance Crime Bureau special agent, Phillip Harris. (2015 map)

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21 It Hit the Fan Mitigation of damages is EVERYONE s responsibility Knowing the experts in your commodity Surveyors Salvage of Branded Products Documenting the loss Forensics Pre-incident training

22 DON T BE LIKE US!

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24 MONEY, MONEY, MONEY, MONEY

25 IT S NOT ROCKET SCIENCE! [T]he rule of mitigation of damages is not whether hindsight suggests that an objectively better choice [by the damaged party] was available but whether the mitigation efforts chosen... were reasonable. APL Co. Pte. Ltd. v. Blue Water Shipping U.S. Inc., 779 F. Supp. 2d 358, 371 (S.D.N.Y. 2011). BE REASONABLE! Frosty Land Foods Int'l, Inc. v. Refrigerated Transp. Co., 613 F.2d 1344, 1349 (5th Cir. 1980) Since the evidence showed that the shipper sold the meat in Los Angeles for the best price it would bring, the shipper had done, therefore, all that could be fairly required of it to save the carrier from resulting loss M. Golodetz Export Corp. v. S/S LAKE ANJA, 751 F. 2d 1103, 1112 (2d Cir. 1985) - Carrier could not be liable for damages caused to the tallow from the time the Shipper learned of the damage until it finally sold it for salvage18 months later

26 Seek Assistance when necessary! Not all lawyers bite!

27 Knowledge vs. Wisdom Knowledge learning from your own mistakes Wisdom learning from the mistakes of others

28 THANK YOU Moderator: Paul J. Kozacky, Esq., Kozacky Weitzel McGrath, P.C., Chicago, Illinois Panelists: Tom Blanck, Chainalytics, Minneapolis, Minnesota Daniel I. Hill, ABF FreightSM An ArcBest Company, Ft. Smith, Arkansas John McNamee, Sr., GEODIS, Brentwood, Tennessee