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The Quest
August 2011 - Issue 71
              
Inside this issue:
        
CBP updates 301 bond form

New bill proposed to fight fraud in trucking

Ways to red-flag fraud, by Andrew Spector, Esq.

New report identifies cargo theft trends

China proposes increase in FMC optional bond rider

Updates on liquidated damages for Periodic Monthly Statement

CBP updates mitigation guidelines for advance cargo information violations

U.S. government urges companies to strengthen Internet security
 
Trucking associations ask NHTSA to examine truck crashworthiness standards

       

                    

              
New report identifies cargo theft trends
  
In a new report, the National Insurance Crime Bureau (NICB) identified 747 incidents of cargo theft in 2010, totaling more than $171 million.

California topped the nation with 247 theft incidents, followed by Texas with 91, Florida at 66, Illinois at 56, Tennessee with 40 and Georgia at 39. The NICB noted that major cities such as Los Angeles, Dallas, Memphis, Chicago and Atlanta have extensive cargo and transportation facilities, which provides thieves with easy access to large amounts of cargo.

Electronics, food and clothing were the top three commodities stolen in 2010. In comparison to other organized crimes, thieves view cargo theft as “low-risk,” the NICB said. There’s also a potential for high profits, since most goods can be resold online, at flea markets and overseas.

According to the NICB’s report, most thefts happen within 200 miles or four hours of the driver’s starting point. Criminals follow drivers and steal the cargo within five minutes after the driver stops. Another growing trend is fraudulent pickups, where thieves access load information online, impersonate a legitimate carrier and secure a contract for transport. After the goods are stolen, the fraudulent driver and fake trucking company disappear.

The NICB provided several tips to help reduce cargo theft, such as pre-employment screening, personnel training, obtaining in-transit security and periodic supply chain audits.

Logistics providers should consider obtaining Cargo Insurance to protect goods while in transit. Educating customers on the risks of cargo theft and the benefits of Cargo Insurance help provide peace of mind, and your customers will know their goods are covered with industry-leading protection. Avalon’s comprehensive policy also includes coverage for theft and/or hijacking of an entire load.


    
For more information, please contact your local Avalon office or Andriana Davis at (847) 700-8087 or at adavis@avalonrisk.com. A list of our offices may be found at www.avalonrisk.com.
             
       

Avalon Risk Management
150 Northwest Point Boulevard | 4th Floor | Elk Grove Village, IL 60007
Phone: (847) 700-8100 | Fax: (847) 700-8116

www.avalonrisk.com

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