Insurance and Moore: Loaded and locked: preventing cargo loss from theft

It’s 2 a.m. and the winter winds are howling as you pull up your loaded semi behind a rural gas station and hustle inside for a double double and a box of Timbits. After a few minutes of banter with the cashier, you head back – and your truck is gone, along with its load of frozen meat products. 

A study commissioned by the Canadian Trucking Alliance (CTA) showed cargo crimes – theft, fraud, and hijacking – cost the industry, its clients, and consumers $5 billion a year. A large portion of this has been attributed to crime syndicates, which use the black-market proceeds from stolen cargo to fund activities such as gun and drug smuggling.  

Reporting helps reduce losses  

For several years, the CTA has been partnering with the Insurance Bureau of Canada (IBC) on a national Cargo Theft Reporting program, in hopes that fast reporting and cooperation with one another, law enforcement, and border agencies will improve the situation. The reporting program now enables IBC to get information out to police and border agents as soon as the theft occurs, making it far more feasible to recover the stolen goods before thieves can grab and re-sell it. As a result, more stolen cargo is being recovered – $14 million worth in 2019, as compared to $270,000 when IBC first started compiling stats in 2014. 

But as shown by September’s reports about cargo loads of beef and hot tubs being stolen, the problem persists across Canada. Easily resold and/or hard to trace goods such as food, high-value consumer electronics, clothing, lumber, and even metal (such as copper tubing) are at particular risk. Medical equipment is normally hauled by dedicated carriers, but the COVID-19 pandemic has led to an increase in personal protective equipment, such as medical gloves, being targeted by thieves.  

So – what can you as a driver or trucking company operator do to reduce the risk of having your cargo stolen? 

Don’t leave it alone 

In our experience, the biggest risk comes from leaving loads unattended. When possible, it’s best to stay with your vehicle. If two people are traveling together, stagger meal or bathroom breaks. 

Truckers needing to leave their loaded vehicle for an extended period of time should arrange for it to be stored in a locked compound. Many long-haul transport vehicles are equipped with a sleeper cab, but you may still feel safer overnight with deterrents such as security cameras, good lighting, high barbed wire fencing, and/or security guards close by as theft deterrents. A rental parking spot or a public parking lot (such as at a hotel or a Walmart) is far too vulnerable.  

We recommend planning your stops before you set out on a trip, so that you can research storage spots and/or designated truck stops in each location and can feel confident that they have the proper measures in place to protect you, your vehicle, and your cargo. 

Keep track of it 

Tracking systems are also an asset – a built-in GPS in both the cab and the storage areas can help you see not only where you are when you’re driving, but where the vehicle is when the driver (you or an employee) leaves it. 

Know your customer – and your driver 

Once you reach your delivery location, make sure you’ve done your due diligence in ensuring the person accepting the load is in fact the proper recipient before you hand it over. You don’t want to be caught by a scam artist posing as your customer! 

While business growth is certainly desirable, we caution against growing too quickly, as that could leave you as a trucking company operator vulnerable to scams. Take the time to get to know your drivers and train them on your expectations for securing loads against both theft and other hazards. Expanding well outside of your geographic area before you’ve become familiar with the en route storage or had time to train more drivers can expose you to additional risks. 

Lean on the experts 

If you’re looking at expanding, we suggest talking with a loss protection and risk management specialist. Your insurance broker may be able to serve as an advisor, as some have worked in the trucking industry while others have worked closely with other trucking businesses.  

Provincial trucking associations (like AMTA!) and the Canadian Trucking Alliance are also excellent information resources for new, established, and expanding businesses. 

Even with precautions, though, you may still fall prey to cargo thieves. If your cargo is stolen, here’s the IBC reporting tool. And your insurance company is there for you, too. Contact your insurance broker to learn more.