Despite a crime rate that has dropped dramatically over the past decade, losses from cargo theft continue to climb and are now estimated at about $12 billion per year (compared to just $80 million for bank robbery). Thieves and hijackers prey on specific commodities such as pharmaceuticals, high-tech equipment, designer clothing and fragrances. But almost any shipment, from seafood to dry goods, is fair game.

Cargo theft doesn’t affect just those of us in the transportation industry. Because increased insurance and security costs add significantly to the price of goods, all American consumers pay. But it is a problem that cuts deeply into the trucking industry’s bottom line.

The question is: How can we prevent cargo theft?

According to a leading insurance company investigator, more than half of all major cargo thefts are inside jobs, planned by employees of shippers and manufacturers. Therefore, it is important to re-evaluate employee hiring practices and company policies regarding security. The following tips may help you save tens of thousands of dollars:

• Never hire an individual who does not provide bona fide references
• Don’t place temporary workers in critical areas such as logistics planning
• Keep the details of shipping and receiving on a “need to know” basis
• Allow only trusted employees to know the locations of valuable inventory
• Use company identification cards to ensure that those leaving the yard with trucks and trailers are indeed your drivers
• Keep unauthorized personnel away from computer workstations which might contain sensitive information

The grim reality is that some drivers knowingly abet criminals. It is common knowledge among law enforcement officers involved in fighting cargo theft that many truck stops are frequented by hijackers and burglars who seek to recruit drivers. There, cash is offered for cooperation in a crime or information about a valuable shipment. Therefore, it is imperative that the screening process for drivers be especially thorough. This means obtaining personal as well as business references, testing for drugs and even using psychological profiling to weed out potential problem employees.

But because carelessness, rather than dishonesty, is the more prevalent internal problem, training employees to exercise discretion should be a major part of any program designed to reduce or eliminate theft. Drivers, by openly discussing the specifics of the loads they are hauling on their CB radios or at truck stops, often inadvertently provide thieves with the information they need to plan a burglary or robbery. It is important that all employees understand the need for circumspection and that “loose lips sink ships.”

Drivers that leave trucks unlocked or parked in poorly lit areas are inviting theft. Company policy should reflect this and drivers who violate the rules should be disciplined—just as drivers with good records are rewarded. Zero-tolerance for rule breakers will go a long way toward changing high-risk behavior.

To avoid hijackings and burglaries, drivers should be instructed to:

• Maintain regular communication with the dispatcher
• When possible, go directly to the delivery point without stopping
• Load the most valuable cargo toward the front of the trailer
• When parking, back trailers against a wall
• Because most hijackings occur within a few miles of the pickup point, be especially alert after loading the truck
• Be wary of suspicious traffic stops and cars that appear to be following too closely
• In the event of a robbery, do what the hijackers say; no cargo is worth a life

When a theft does occur, what happens after is vitally important because as time passes chances for the recovery of stolen goods rapidly diminish. Drivers should contact the police immediately and provide whatever information is needed, including the serial and license plate numbers of stolen vehicles. To this end it is helpful to develop relationships with the police departments along often-traveled routes. Offering a reward for information is also a good strategy.

Immediately after the September 11th attacks, the prevention of truck hijackings took on even greater urgency. Attorney General John Ashcroft warned Congress that trucks laden with hazardous materials such as gasoline or explosives could be hijacked by terrorists and used as lethal weapons. This has created intense interest in devices that can prevent the theft and hijacking of commercial vehicles by sounding an alarm, remotely shutting the stolen truck’s ignition and preventing it from being restarted.

As criminals become more sophisticated, technology is playing a more important role in transportation security. Today there are GPS-based tracking systems that give dispatchers the location and status of every one of their fleet’s trucks on the road. These systems provide information about everything from the speed at which a driver takes a dangerous curve to the temperature of a refrigerated trailer. Some even provide a panic button with which the driver can call directly for help in the event of an accident or robbery. If a truck deviates from its assigned route, for whatever reason, the dispatcher will see it immediately.

But all the training and driver scrutiny in the world cannot prevent theft if drivers can’t rely on their trucks’ locks and alarm systems. This is truly an instance where workmanship and quality make all the difference. A one-key locking system is most effective because it prevents the driver from being careless; he cannot forget to set the alarm because it must be activated (and the doors secured) before he can regain and use the ignition key. This is particularly important when there is just one driver.

Never use anything but the most durable tempered-steel locks and double-bitted keys. Padlocks are not reliable because their keys are too easily copied. It is recommended that you use special truck locks for which only the manufacturer can make replacement keys—these are the most secure.

Also be sure that the power supply for your alarm system is housed in a tamper-proof steel container hidden beneath the truck’s body where it is inaccessible to thieves and won’t take up valuable cargo space.

Because of its devastating effect on a trucking company’s bottom line, theft—even more than high fuel prices—is the most serious problem facing operators today. Using due diligence and common sense, the threat can be dramatically decreased, affording the trucking industry a healthier profit margin and a safer working environment.

Babaco Alarm Systems, recognized and accepted by all cargo insurance underwriters, has been a leading provider of transportation security systems for the past 75 years. Since its founding, the company has witnessed tremendous advances in both cargo transportation and criminal techniques. Babaco has striven to meet each challenge by designing and installing more sophisticated security systems.

William Seide, the grandson of Babaco’s founder Lewis Seide, is a leading transportation security expert.