hijacking havens the challenges of …...2015/09/04 · david a. jones, cpp, cfi vp – global...
TRANSCRIPT
David A. Jones, CPP, CFI
VP – Global Security Lead – Supply Chain
HIJACKING HAVENS – The Challenges of
Transporting Goods in Mexico and Brazil
September 9, 2015
DHL | Page ISCPO Cargo Security Summit September 8,2015
2
Hijacking Risk Levels
National Statistics – Brazil
National Statistics – Mexico
Common Hijacking M.O.s
Best Practice Countermeasures
Agenda
DHL | Page ISCPO Cargo Security Summit September 8,2015
3
Security spending by major carriers in Latin America represents
an astonishing 20% of their total operating costs!
Brazil and Mexico Have The Highest Incidents of Cargo
Theft in The World
Sources – Coordinating Office of Insured Risks (OCRA) & Frieghtwatch Intl
Risk Level
Low
Elevated
Moderated
High
Severe
Mexico 2015: 136 hijackings per day or 16,400 YTD. Increased 93% vs. 2014
Nearly 60% of reported incidents occur in Sao Paulo State
DHL | Page ISCPO Cargo Security Summit September 8,2015
4
Brazil – Risk by State
Source: FreightWatch International – Global Threat Assessment 2013
Sao Paulo State and Rio De
Janeiro at highest risk –
represents 84% of all Brazilian
hi-jacking’s
Risk Level
Low
Elevated
Moderated
High
Severe
Brazil had 17,500 reported hijackings in 2014, including armed attacks
on cargo terminals at Guarulhos and Viracopos International airports.
2015 Hi-Jackings
• Country ……….. 10%
• Sao Paulo State..18%
• Rio State………...50%
DHL | Page ISCPO Cargo Security Summit September 8,2015
5
Mexico – Risk by State 2015 YTD
Mexico State & Puebla represent highest risk areas. Hundreds of gangs
are known to specialize in cargo crime.
Puebla
Jalisco
Distrito Federal
Estado de México
Chihuahua
Guanajuato
Veracruz
Hidalgo Risk Level
Low
Elevated
Moderated
High
Severe
DHL | Page ISCPO Cargo Security Summit September 8,2015
6
Hijacking Risk Levels
National Statistics – Brazil
National Statistics – Mexico
Common Hijacking M.O.s
Best Practice Countermeasures
Agenda
DHL | Page ISCPO Cargo Security Summit September 8,2015
7
Brazil – Robbery Risk Scenario
Vehicle 99% Warehouse 1%
1st
2nd
3rd
Most Stolen Commodities
Evento Prejuízo
49% 38%
51% 62%
Urban
Highway
$ Loss Incidents
DHL | Page ISCPO Cargo Security Summit September 8,2015
8
64%51%
32%44%
4% 5%
Evento Prejuízo
Agregado
Frota
Autônomo
00:00h
06:00h
12:00h
18:00h
16%
35%
19%
30%
Day Time/ Week
Driver type “MODUS OPERANDI”
Road
Urban
52% 48%
40% 37%
8% 15%
Evento Prejuízo
Agregado
Frota
Autônomo
00:00h
06:00h
12:00h
18:00h
46%
16%
20%
18%
48,5%
51,5%
68,3%
31,7%
Movement
Stopped
52%
48%
32%
68%
Aggregate
Fleet
Independent
Fleet
Aggregate
Fleet
Independent
Fleet
# Events $ Value
# Events $ Value
Movement
Stopped
Brazil Robbery Risk Scenario
DHL | Page ISCPO Cargo Security Summit September 8,2015
9
Hijacking Risk Levels
National Statistics – Brazil
National Statistics – Mexico
Common Hijacking M.O.s
Best Practice Countermeasures
Agenda
DHL | Page ISCPO Cargo Security Summit September 8,2015
10
Mexico – Hijacking Risk
Vehicle 99% Warehouse 1%
1st
2nd
3rd
Source: FreightWatch & DHL
Type of Incident Q2 2014 vs Q22015
Most Stolen Commodities
31% 26%
12%
3%
7% 5% 4% 3%
2% 2% 1% 2% 2%
Building &Industrial
Food & Drinks Miscellaneous Alcohol Auto & Parts Clothing & Shoes Electronics Pharmaceuticals Cash-In-Transit Tobaco Personal Care Fuel Chemicals
Total Loads 229,151
Total Loads Stolen 85
% Theft Ratio 0.03%
% Recovered 37.65%
% Real Theft Ratio 0.02%
2014 DHL Incident - Loads Ratio
Type of Incident 2014 Q2 vs 2015 Q2
445%
98%
76%
55% 36%
20% 100%
Hijacking Theft fromTrailer
Theft ofTrailer
WarehouseBurglary
Rail Theft Theft ofContainer
Fake Police
2014 2015
DHL | Page ISCPO Cargo Security Summit September 8,2015
11
Mexico – Hijacking Risk
Source: FreightWatch & DHL
Most Stolen Commodities
31% 26%
12%
3%
7%
5% 4%
3%
2% 2%
1% 2% 2%
Building & Industrial Food & Drinks Miscellaneous Alcohol Auto & Parts Clothing & Shoes Electronics Pharmaceuticals Cash-In-Transit Tobaco Personal Care Fuel Chemicals
DHL | Page ISCPO Cargo Security Summit September 8,2015
12
Mexico – Hijacking Risk – 2015 YTD
Event – Loss/Week Event Loss
10% 10%
17%
21%
29%
8% 6%
M T W T F S S
Event – Loss/Hour
6%
4%
19%
18%
10%
12% 01:00 HRS.
02:00 HRS.
03:00 HRS.
04:00 HRS.
05:00 HRS.
06:00 HRS.
Event - Modus Operandi
67%
4%
14% 15%
ROAD BLOCKED TRAFFIC LIGHTS GAS STATION OTHERS
Event – Type
97%
3%
Hijacking
Truck Theft
Source: FreightWatch
DHL | Page ISCPO Cargo Security Summit September 8,2015
13
90% of transportation in Mexico is comprised of small, family businesses
called “Truck Men.” On average, trucks are between 10 and 20 years old
Mexican Transport Structure
10%
90%
Transport Fleet Operations Truck Men
DHL | Page ISCPO Cargo Security Summit September 8,2015
14
Mexico Transportation Breakout
11%
34% 54%
Railway
Sea
Land
Air
Railway
Sea
Air
Land
1%
The highest percentage of product is transported by land. And most of
what is carried by sea remains focused on export.
DHL | Page ISCPO Cargo Security Summit September 8,2015
15
Thefts by product type
Mexico Thefts by Commodity
Source: FreightWatch
Pharma-
ceuticals
Clothing/
Shoes
1% 2%
1%
Consumer
Care
2%
Tabacco Cash-in-
transit (CIT)
2%
Home/
Garden
7%
2%
Alcohol Unknown Miscellaneous Electronics
9%
Food/
Drinks
14%
Chemicals
3%
7%
3%
27%
Building/
Industrial
Auto/
Parts
20%
DHL | Page ISCPO Cargo Security Summit September 8,2015
16
Source: FreightWatch
Hijacking by location 2015 YTD
Mexico – Where Did Thefts Occur
69%
11%
16%
2% 4%
In-Transit Facility Interior Roadside Gas Station Facility Lot
DHL | Page ISCPO Cargo Security Summit September 8,2015
17
Hijacking Risk Levels
National Statistics – Brazil
National Statistics – Mexico
Common Hijacking M.O.s
Best Practice Countermeasures
Agenda
DHL | Page ISCPO Cargo Security Summit September 8,2015
18
Hijacking on the Road – Typical Process for Cargo
Robbery
Original truck New truck
Warehouse “Safe place”
Highway attack
Move cargo to
“safe place”
Wait few days to see
if police and recovery
teams show up on scene
Deliver cargo to
end receiver
DHL | Page ISCPO Cargo Security Summit September 8,2015
19
Hijacking on the Road – Attack Strategy
Hijacker Car
Transfer Truck
Escort Car
DHL | Page ISCPO Cargo Security Summit September 8,2015
20
Hijacking on the Road – Attack Strategy
DHL | Page ISCPO Cargo Security Summit September 8,2015
21
Hijacking in the Street – Typical Process for Cargo
Robbery
Delivering cargo Armed Bandit
Small Bodega Flees scene
Street attack
Takes van or a
few packages
Bad guy delivers
to small shop
or trades for narcotics
DHL | Page ISCPO Cargo Security Summit September 8,2015
22
Hijacking in the Street – Attack Strategy
Driver and helper are surrounded while moving or parking on the street
DHL | Page ISCPO Cargo Security Summit September 8,2015
23
Hijacking in the Street – Attack Strategy
Driver or helper are surrounded during a delivery on the street
DHL | Page ISCPO Cargo Security Summit September 8,2015
24
Real World Examples
DHL | Page ISCPO Cargo Security Summit September 8,2015
25
Real World Examples
DHL | Page ISCPO Cargo Security Summit September 8,2015
26
Real World Examples
DHL | Page ISCPO Cargo Security Summit September 8,2015
27
Real World Examples
DHL | Page ISCPO Cargo Security Summit September 8,2015
28
Equipment Found with Cargo Thieves
DHL | Page ISCPO Cargo Security Summit September 8,2015
29
High Power Jammers
DHL | Page ISCPO Cargo Security Summit September 8,2015
30
Hijacking Risk Levels
National Statistics – Brazil
National Statistics – Mexico
Common Hijacking M.O.s
Best Practice Countermeasures
Agenda
DHL | Page ISCPO Cargo Security Summit September 8,2015
31
Inbound Quality Control
Insure use of proper inbound quality control audits,
as some losses may not be your
responsibility………….
DHL | Page ISCPO Cargo Security Summit September 8,2015
32
Central Monitoring – Tracking Cells 365 24/7
Drivers not allowed to
use shortcuts or low
density side roads
Drivers must travel on
main highways or toll
roads, whenever
possible. If he must
leave route, he must first
notify tracking cell
If hauling international
shipments, the driver
cannot make stops
before 300 kms and 100
kms for local shipments
The operator must follow
the route that tracking
cell sets
DHL | Page ISCPO Cargo Security Summit September 8,2015
33
Geofencing with Central Monitoring
DHL | Page ISCPO Cargo Security Summit September 8,2015
34
Geofencing with Central Monitoring
DHL | Page ISCPO Cargo Security Summit September 8,2015
35
Automated Tracking Device System
A N B
The tracking operator is the weak link
in the chain because defensive
actions depend on his alertness.
If the operator fails to follow the
standard protocol, protection
procedures fail.
An automatic program takes action as
soon as any alert is received,
regardless of operator actions.
DHL | Page ISCPO Cargo Security Summit September 8,2015
36
Tracking Devices
Tracking Cell – When a vehicle must be tracked, the tracking cell
should be a reputable and vetted company. Professional tracking
operators can make a huge difference, and performance should be
monitored regularly.
Minimum Tracking Cell Infrastructure
Internet connection in large band
Dedicated computer
UPS (Unit Power Supplier)
Software compatible with tracking technology
Insure that all Tracking Device Accessories are clearly defined in
the Formal Security Agreement (FSA) with carrier.
DHL | Page ISCPO Cargo Security Summit September 8,2015
37
Tracking Equipment
Used by DHL
DHL | Page ISCPO Cargo Security Summit September 8,2015
38
Geo Route and Geofence Creation
Origin and final destination with client is recorded before route initiation, and is being
tracking by Protekto and continuous communication with driver and security.
DHL | Page ISCPO Cargo Security Summit September 8,2015
39
Padlocks Placing
DHL | Page ISCPO Cargo Security Summit September 8,2015
40
Along the route, we can detect the exact location of gas stations and schedules / timings of
allowed stops or when truck was parked in public places
Tracking and Monitoring.
DHL | Page ISCPO Cargo Security Summit September 8,2015
41
Detailed reports of the truck progress are received, also if arrival to destination with client
and confirmation from geofence.
Tracking and Monitoring.
DHL | Page ISCPO Cargo Security Summit September 8,2015
42
Escort Practices
GPS
1 2
X1, X2: Escort positioning must guarantee the widest cone of observance
x2 x1
DHL | Page ISCPO Cargo Security Summit September 8,2015
43
Success Story
While delivering cargo for a high-end fashion retailer, a truck
was approached by two armed bandits at a red traffic light. He
immediately pressed the panic button to reach the central
monitoring center.
Monitoring center personnel activated the reaction protocol
disengaging the engine of the truck and requesting police
support.
The would-be thieves left the truck and fled leaving the cargo,
with a value of USD 81K intact, but taking the keys!
The quick reaction of the operator and central monitoring
station personnel, prevented the hi-jack attempt and the
merchandise was delivered safely, albeit un-conventionally, to
the customer.
DHL | Page ISCPO Cargo Security Summit September 8,2015
44
Success Story
Truck loaded onto tow flatbed Truck arriving at Destination
Off-load of the product Final Delivery
DHL | Page ISCPO Cargo Security Summit September 8,2015
45
Due Diligence – Limiting Liability and Establishing
Protocols in the Formal Security Agreement (FSA)
Maximum Value
Define security protocols and include
them in the contract
The FSA should define the maximum
value the client will allow in one
shipment
Shipments over the value agreed
should only be shipped after formal
communication from client or
insurance owner
Escort Protection
FSA should also specify the minimum
escort value that triggers escort use
The radius where escorts are to be
used (distance from origin)
Door to door escorts are not usual
due to the cost. The efficiency is
questionable
FSA and Operational Protocol
Escort Protocol
DHL | Page ISCPO Cargo Security Summit September 8,2015
46
Due Diligence – Security Agreement with Carrier
Carrier Contract Agreement
Clear definition of insurance
responsibility during cargo
transportation (hijacking, truck
theft and accident). Formal and
part of commercial contract
Any new carrier should be
contracted only after a formal
security agreement is signed
Subrogation
Formal Security Agreement
(FSA) with carriers
Formal Security Agreement
DHL | Page ISCPO Cargo Security Summit September 8,2015
47
Due Diligence – Driver Background Checks
Driver and Helper
There are many companies that
can conduct these kind of
checks, but country privacy laws
often limit how deep the search
can go.
Base criteria
Criminal
Financial
Driving record
DHL | Page ISCPO Cargo Security Summit September 8,2015
48
Due Diligence – Security Carrier Hub Audit
DHL | Page ISCPO Cargo Security Summit September 8,2015
49
When You Fail to Audit Carrier Location…………
DHL | Page ISCPO Cargo Security Summit September 8,2015
50
Due Diligence – Training Associates & Transportation
Partners
We work with over 1,000 transportation
companies and thousands of drivers in Latin
America. Ensuring that these teams
understand and follow our transportation
procedures and protocols, is essential to the
success of our security program.
“Trust, but verify”!
Ronald Reagan
DHL | Page ISCPO Cargo Security Summit September 8,2015
51
Truck Protection Capabilities
Disengage sensor
Extra devices
• truck stairs protection
• windows sensor web
• sunglass
• 2° tracking device in the cabin
Extra devices
• Armored capsule
• 3° tracking device
with
prompt answer
• On-board computer
• GPS
• Satelital or GPRS
communication
• Cell or radio
communication
• Panic button
• Sound and light alerts
• Left- and right-door
sensors
• Damage sensor
• Motor sensor
• Speed sensor
• Fuel block
• Trailer back door
sensor
• Trailer back door lock
DHL | Page ISCPO Cargo Security Summit September 8,2015
52
Best Practices – Harden the Target
Additional and optional equipment
added in the truck or trailer to
improve security
Cargo portable tracker
Cabin windows mesh
Truck stair protection
Disposable portable trackers –
Uses GPRS and RF and is
placed inside the product box
‒ Expensive but efficient
DHL | Page ISCPO Cargo Security Summit September 8,2015
53
Best Practices – Harden the Target
Armored Trailer & Vans
Protects the trailer using steel
mesh and steel plates (2 mm);
coffer door with electronic lock
with random access.
Cheaper than an armored
cabin
Short payback if it is possible
to change the escort
protection
Efficient in short distance in
use second tracking device.
DHL | Page ISCPO Cargo Security Summit September 8,2015
54
Portable Tracking Devices Hidden Inside Product
DHL | Page ISCPO Cargo Security Summit September 8,2015
55
Ongoing Challenges We Face
Poor reporting standards by victim companies
Government involvement to aggressively address issue
Improving infrastructures - roads, highways, bridges
Police corruption on local level
Criminal infiltration of shipping companies and tracking centers
Finding solutions to defeat “Jamming” technology
Brazil – Upcoming Olympics (2016)
Lack of law enforcement personnel with cargo crime specialization
training
DHL | Page ISCPO Cargo Security Summit September 8,2015
56
Questions??
Thank You!