Shippers looking to crack down on cargo theft are enlisting the aid of high-tech devices. But there's more to it than simply tucking a covert wireless tracker into a shipment.
Mark Solomon joined DC VELOCITY as senior editor in August 2008, and was promoted to his current position on January 1, 2015. He has spent more than 30 years in the transportation, logistics and supply chain management fields as a journalist and public relations professional. From 1989 to 1994, he worked in Washington as a reporter for the Journal of Commerce, covering the aviation and trucking industries, the Department of Transportation, Congress and the U.S. Supreme Court. Prior to that, he worked for Traffic World for seven years in a similar role. From 1994 to 2008, Mr. Solomon ran Media-Based Solutions, a public relations firm based in Atlanta. He graduated in 1978 with a B.A. in journalism from The American University in Washington, D.C.
As beta tests go, it wasn't much of a sampling. The three-month trial involved only 10 trucks used by FedEx Corp.'s Custom Critical "White Glove" unit, which transports time-sensitive, high-value goods requiring some form of special handling. But what emerged could tilt the playing field, albeit modestly, in favor of those tasked with securing their supply chains from villains, thieves, and scoundrels.
The White Glove unit was testing cellphone technology that would enable an employee to remotely disable a stolen or hijacked vehicle once it got back on the road. With the truck immobilized, the goods inside could be quickly recovered and the thieves apprehended because they couldn't stray far enough to elude law enforcement.
Carl Kiser, operations manager for the White Glove service, was impressed with the performance. "The technology worked," he says.
It is unclear how the new tool would be incorporated into Custom Critical's 1,400-truck fleet. The division already outfits about 20 percent of its trucks with devices affixed to dashboards and embedded in driver key fobs to automatically disable the truck unless the driver enters a special code to start up the engine. All of Custom Critical's fleet is equipped with global positioning system (GPS) technology that has become a mainstream tool to combat theft on the roads.
The ability to stop a stolen conveyance from a distance could become the latest weapon in the cargo theft wars, which cost American industry an estimated $6 billion to $20 billion annually in the value of goods pilfered while in transit. (Those estimates exclude the value of goods stolen from warehouses and distribution centers.) Firm figures aren't expected to be available until early next decade when the FBI rolls out a long-planned database dedicated to tracking cargo theft. Currently, the bureau consolidates cargo theft data with statistics covering other types of crime.
"Harden" the target
The effectiveness of anti-theft technology is in the eye of the beholder. IT vendors believe their tools can make great strides in combating theft and pilferage. Others are not so sure. Barry Brandman, president of Danbee Investigations, a consulting firm in Midland Park, N.J., that has worked in the supply chain security field since the mid-1970s, says technology, in and of itself, has limited value. Much of it doesn't work as promised or is quickly figured out by today's sophisticated criminal element, he says.
"These are businesspeople who are often part of organized crime groups that have their own supply chains," he says. Cargo thieves are so adept at swiftly spiriting their booty away from crime scenes that most property stolen out of supply chains is never recovered. Often, the goods end up in foreign countries.
"It generally takes less than four hours for stolen cargo to leave the state where the theft occurred, and everything from scheduling the hit and negotiating the sale price of the goods to the choice of export conveyance has already been arranged," says Brandman.
Arthur Arway, security director of the Americas for DHL Global Forwarding, the world's biggest airfreight forwarder, says anti-theft technology is most effective when it "hardens the target" by blanketing all channels through which thieves might try to infiltrate the supply chain. The idea, says Arway, is to create enough uncertainty in the minds of thieves so "they will avoid you and go after someone else."
Several vendors in the cargo security market have already begun offering some type of multilayered security program. For example, Safefreight Technology, an Edmonton, Alberta-based IT provider, uses its "SmartFleet" application to attack in-transit theft at multiple levels. Safefreight first asks clients to define "security zones" where trailer doors are scheduled to be opened. It then affixes sensors to the equipment that alert the user in real time if a door has been opened outside any pre-established zone, whether it be a small area such as a trailer yard or a large territory such as a multi-state region. Earl Bourque, Safefreight's chief technology officer, says most in-transit cargo theft occurs in confined spaces like loading docks.
The company's technology also tracks trailer schedules based on electronic interfaces provided to its customers. After the customer enters and submits the scheduling information, Safefreight uses its automated tracking system to monitor the driver, rig, and equipment in transit.
The SmartFleet system gives Safefreight customers a complete and accurate picture of their assets' location at all times, says Bourque. This helps reduce the potential for in-transit theft because the fleet is being constantly monitored and customers are notified in real time of any variances from preset conditions for routes, geographic zones, schedules, or door sensors. In addition, regular reports enable fleet managers to have a deeper and more accurate read of how effectively their equipment is being utilized, Bourque says.
"The goal of our systems is to take the technology beyond simple GPS tracking. We want to relieve fleet managers of the burden of continuously monitoring their fleets and enable them to optimize the security, safety, and efficiency of their assets," Bourque says.
Inside jobs?
Many shippers and anti-theft experts consider the driver to be the weak link in the security chain. For that reason, some anti-theft specialists have chosen to combat the problem with services and technology aimed at ensuring that carriers and their drivers follow pre-set procedures that minimize risk to their trailers and their loads.
As for how they monitor compliance, one method is to plant high-tech tracking devices inside loads. For example, FreightWatch International (USA), a global company that provides security services, makes use of a covert mobile wireless device manufactured by a Canadian company called Sendum Corp. The device, about the size of a folded-over cellphone, is used mostly to track truckload shipments of high-value goods such as pharmaceuticals and electronics. A vehicle with 24 pallets, for example, might be monitored by two or three of the embedded devices. The devices are inserted covertly, work off a satellite network, and will emit tracking signals at intervals that are pre-set by the user but which can be changed at any time. Generally, shippers or intermediaries embed the devices before the goods are packed. For the most part, trucking companies and their drivers are oblivious to their presence.
The devices will notify the user if the driver is not following pre-determined routes or established practices. The user then contacts the trucker who, in turn, relays the information to the driver. The reusable devices sell for $300 to $500 apiece, which doesn't include an ongoing subscription fee.
The process strengthens trucker and driver compliance, thus reducing the potential for an incident, says Ed Petow, director of quality control for Freightwatch (USA). "If you get compliance, there's less of a chance for theft," he says. Plus the prospect of surveillance tends to keep people honest. "I had one customer tell me that 'the trucking companies can't lie to me anymore,'" says Petow.
A role for RFID?
Even RFID is getting into the act. Mikoh Corp. of McLean, Va., has built and patented technology designed not to protect the asset while in motion, but the RFID chip tracking it. The chip automatically self destructs if removed from its original location, making it impossible for thieves to detach it and affix it to another item.
Mikoh officials acknowledge their company's technology will not directly prevent the theft or pilferage of an intransit shipment. They say, however, that once the RFID reader detects a security breach, users can take remedial action that may prevent future incidents. The company has also developed an advanced tag that leaves a smoke-like trace to indicate possible tampering, while the tag itself continues to function normally.
Mikoh's technology hit the market in September 2005 and today is used mostly by government agencies and onboard courier firms whose couriers carry time-sensitive and high-value material in briefcases. Perhaps the product's most widespread use is in Bermuda, where it's used to discourage tampering with the RFID chips used to ensure that commercial and personal vehicles are properly registered.
The RFID protection technology has gained little traction among large commercial users since its introduction. The lack of commercial customer uptake reinforces the perception that the cost of RFID tags and the expense and difficulty of implementation make it of doubtful value when it comes to fighting cargo crime.
Andrew Strauch, vice president, product management and marketing, says Mikoh is currently in the "educational" phase with commercial prospects. He reports that Mikoh is aggressively courting the pharmaceutical and healthcare industries, which he calls ideal candidates for technology to protect RFID tags because they make and ship high-value, perishable goods that are vulnerable to theft and tampering.
Strauch acknowledged his company's efforts have been hindered by the marketplace's lack of focus on protecting the RFID tags themselves. "RFID security has not been ignored," he says. "But users have been too busy figuring out the technology's economics and its effect on business processes to concentrate on the security of the tag itself." Mikoh's mantra, as expressed by Strauch, is "protect the tag, and you protect the asset."
Not the be-all, end-all
As with virtually all business applications, anti-theft technology cannot work effectively in a vacuum. Few dispute that the tools are less expensive, more user-friendly, and more robust than ever. However, experts warn against buying into the notion that IT offers the "silver bullet" premise that can solve what is a nagging and growing problem.
Brandman, a 36-year industry veteran, says anti-theft technology can only be effective when integrated into an organization's best practices. The growth in supply chain scope and complexity, the rise in the number of human touch points, and the fact that employees are involved, knowingly or not, in most thefts of mobile cargo combine to make the integration of technology and processes a requirement for a successful anti-theft program, he says.
"Technology must always be supported by appropriate policies, procedures, and trained personnel," Brandman says. Absent this holistic effort, "most end users will not know what they are buying," he adds.
Or as Jeanne Dumas, director of the Security Council for the American Trucking Associations, says, "Technology definitely has its place. But the best theft deterrent is common sense."
it's the intelligence, stupid!
Technology's most meaningful contribution to the science of supply chain security may lie not in its ability to stop today's thefts but in its capacity to prevent tomorrow's. By mining data from previous incidents, company executives, security consultants, and law enforcement authorities can spot behavioral patterns that are more than coincidental. With the past as prologue, networks, processes, and technologies can then be tweaked to deter tomorrow's thieves.
The Florida Highway Patrol, which in 2005 launched a Web-based system to notify law enforcement and multiple state agencies of every cargo theft within two minutes after the incident was reported, added in 2007 an online mapping program that tracks theft histories by county.
A recent query into activity in Osceola County, south of Orlando, found that 11 cargo thefts had occurred during a six-month period, which, based on historical data, was determined to be a high incident rate. Armed with the data, the Highway Patrol's Cargo Theft Task Force planted decoy tractor-trailers at a specific location in the county to lure and trap suspected criminals. The bait worked: Within days, thieves hit the site, stealing one decoy trailer and five decoy tractors. The stolen decoy trailer was followed to the Miami area, where the thieves were captured and arrested.
The IT tools are having a beneficial effect, says Lt. William Jackson, who coordinates the Task Force and administers the theft notification application, known as the "Electronic Freight Theft Management System." From 2002 to 2007, the number of annual reported cargo thefts in Florida dropped by 31 percent, according to Highway Patrol data.
Furthermore, as word gets out about the agency's technological prowess, criminals are shifting their focus to other states, according to Jackson. As a result, the state, long a prime destination for stolen goods because of its proximity to Central and South America and the Caribbean, could see a long-lasting reduction in cargo theft, he says. "Thieves are leaving Florida," he claims.
That percentage is even greater than the 13.21% of total retail sales that were returned. Measured in dollars, returns (including both legitimate and fraudulent) last year reached $685 billion out of the $5.19 trillion in total retail sales.
“It’s clear why retailers want to limit bad actors that exhibit fraudulent and abusive returns behavior, but the reality is that they are finding stricter returns policies are not reducing the returns fraud they face,” Michael Osborne, CEO of Appriss Retail, said in a release.
Specifically, the report lists the leading types of returns fraud and abuse reported by retailers in 2024, including findings that:
60% of retailers surveyed reported incidents of “wardrobing,” or the act of consumers buying an item, using the merchandise, and then returning it.
55% cited cases of returning an item obtained through fraudulent or stolen tender, such as stolen credit cards, counterfeit bills, gift cards obtained through fraudulent means or fraudulent checks.
48% of retailers faced occurrences of returning stolen merchandise.
Together, those statistics show that the problem remains prevalent despite growing efforts by retailers to curb retail returns fraud through stricter returns policies, while still offering a sufficiently open returns policy to keep customers loyal, they said.
“Returns are a significant cost for retailers, and the rise of online shopping could increase this trend,” Kevin Mahoney, managing director, retail, Deloitte Consulting LLP, said. “As retailers implement policies to address this issue, they should avoid negatively affecting customer loyalty and retention. Effective policies should reduce losses for the retailer while minimally impacting the customer experience. This approach can be crucial for long-term success.”
The next time you buy a loaf of bread or a pack of paper towels, take a moment to consider the future that awaits the plastic it’s wrapped in. That future isn’t pretty: Given that most conventional plastics take up to 400 years to decompose, in all likelihood, that plastic will spend the next several centuries rotting in a landfill somewhere.
But a Santiago, Chile-based company called Bioelements Group says it has developed a more planet-friendly alternative. The firm, which specializes in biobased, biodegradable, and compostable packaging, says its Bio E-8i film can be broken down by fungi and other microorganisms in just three to 20 months. It adds that the film, which it describes as “durable and attractive,” complies with the regulations of each country in which Bioelements currently operates.
Now it’s looking to enter the U.S. market. The company recently announced that it had entered into partnerships with South Carolina’s Clemson University and with Michigan State University to continue testing its products for use in sustainable packaging in this country. Researchers will study samples of Bio E-8i film to understand how the material behaves during the biodegradation process under simulated industrial composting conditions.
“This research, along with other research being conducted in the United States, allows us to obtain highly reliable data from prestigious universities,” said Ignacio Parada, CEO and founder of Bioelements, in a statement. “Such work is important because it allows us to improve and apply academically driven scientific research to the application of packaging for greater sustainability packaging applications. That is very worthwhile and helps to validate our sustainable packaging technology.”
When the trucking giant known as Saia LTL Freight was founded back in 1924, the “company” consisted of just one employee, Louis Saia Sr. of Houma, Louisiana. And it didn’t own a single truck: Saia removed the rear seats from his family car in order to haul his customers’ goods to New Orleans, where he traveled to pick up produce.
One hundred years later, the firm has been bought and sold, acquired some competitors, and moved to Johns Creek, Georgia. And it has added a few more workers. Saia today employs more than 15,000 people who operate 213 terminals across the country and a fleet of over 6,500 tractors and 22,000 trailers.
Saia is now celebrating its 100th anniversary, and the company says it’s not done growing. At a November centennial celebration event, Saia announced that it would invest $1 billion in its operations this year to support further expansion, technological advancements, and its ongoing commitments to sustainability and community involvement. “Our centennial is not just about looking back at our achievements but also looking forward to the innovations and opportunities that lie ahead,” President and CEO Fritz Holzgrefe said in a release.
To commemorate its anniversary, Saia also launched two mobile museums that will stop at select venues for private events and visits. Guests can step into a real Saia truck and explore the company’s 100-year history through interactive artifacts. Visitors can also get behind the wheel of an action-packed simulator to learn what it’s like to be a Saia driver.
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2024 International Foodservice Distributor Association’s (IFDA) National Championship
It’s probably safe to say that no one chooses a career in logistics for the glory. But even those accustomed to toiling in obscurity appreciate a little recognition now and then—particularly when it comes from the people they love best: their kids.
That familial love was on full display at the 2024 International Foodservice Distributor Association’s (IFDA) National Championship, which brings together foodservice distribution professionals to demonstrate their expertise in driving, warehouse operations, safety, and operational efficiency. For the eighth year, the event included a Kids Essay Contest, where children of participants were encouraged to share why they are proud of their parents or guardians and the work they do.
Prizes were handed out in three categories: 3rd–5th grade, 6th–8th grade, and 9th–12th grade. This year’s winners included Elijah Oliver (4th grade, whose parent Justin Oliver drives for Cheney Brothers) and Andrew Aylas (8th grade, whose parent Steve Aylas drives for Performance Food Group).
Top honors in the high-school category went to McKenzie Harden (12th grade, whose parent Marvin Harden drives for Performance Food Group), who wrote: “My dad has not only taught me life skills of not only, ‘what the boys can do,’ but life skills of morals, compassion, respect, and, last but not least, ‘wearing your heart on your sleeve.’”
The logistics tech firm incubator Zebox, a unit of supply chain giant CMA CGM Group, plans to show off 10 of its top startup businesses at the annual technology trade show CES in January, the French company said today.
Founded in 2018, Zebox calls itself an international innovation accelerator expert in the fields of maritime industry, logistics & media. The Marseille, France-based unit is supported by major companies in the sector, such as BNSF Railway, Blume Global, Trac Intermodal, Vinci, CEVA Logistics, Transdev and Port of Virginia.
To participate in that program, Zebox said it chose 10 French and American companies that are working to leverage cutting-edge technologies to address major industrial challenges and drive meaningful transformations:
Aerleum: CO2 capture and conversion technology producing cost-competitive synthetic fuels and chemicals, enabling decarbonization in hard-to-electrify sectors such as maritime and aviation. Akidaia (CES Innovation Award Winner 2024): Offline access control system offering robust cybersecurity, easy deployment, and secure operation, even in remote or mobile sites.
BE ENERGY: Innovative clean energy solutions recognized for their groundbreaking impact on sustainable energy.
Biomitech (CES Innovation Award Winner 2025): Air purification system that transforms atmospheric pollution into oxygen and biomass through photosynthesis.
Flying Ship Technologies, Corp,: Building unmanned, autonomous, and eco-friendly ground-effect vessels for efficient cargo delivery to tens of thousands of destinations.
Gazelle: Next-generation chargers made more compact and efficient by advanced technology developed by Wise Integration.
HawAI.tech: Hardware accelerators designed to enhance probabilistic artificial intelligence, promoting energy efficiency and explainability.
Okular Logistics: AI-powered smart cameras and analytics to automate warehouse operations, ensure real-time inventory accuracy, and reduce costs.
OTRERA NEW ENERGY: Compact modular reactor (SMR) harnessing over 50 years of French expertise to provide cost-effective, decarbonized electricity and heat.
Zadar Labs, Inc.: High-resolution imaging radars for surveillance, autonomous systems, and beyond.