Seals to deter cargo theft are being ignored, says insurer

The humble cargo seal is not a robust deterrent against theft, but it has a key role to play and all too often is being ignored by organisations involved in the supply chain.

That is the assertion made by freight insurance specialist TT Club, which maintains that seals – however basic – can play a central role in identifying location, method and often perpetrators of cargo theft.

In a new security bulletin, the insurer says that despite the existence of a wide range of security seal types, from basic plastic clips through to the frequently used bolt seals, and sophisticated digital options, many in the supply chain are ignoring their benefits in maintaining cargo integrity and promptly identifying theft.

Thieves have devised complex strategies, as well as traditional bolt cutters, to access a container’s cargo undetected. These include recruiting insiders and manipulating seal numbers, either manually or using 3D printing, so almost identical seals can be affixed once the cargo is stolen.

"Whatever sealing regime is employed its effectiveness crucially depends on how the process is managed," said TT Club's logistics risk manager Josh Finch.

"It is important for supply chain managers to be aware of the limitations of the various seal designs but also appreciate that whatever seal type is employed, their efficacy hinges on whether the information from the seal is accurately checked," he added. "A security culture must pervade operations at both loading and unloading points, as well as other key handling locations."

One issue that needs to be addressed is that, all too often, personnel at the receiving warehouse view the seal as a nuisance, something that needs to be cut from the doors before opening the container and unpacking it.

It is crucial however to identify any tampering with the seal as soon as possible, as that can help to pinpoint exactly how the theft occurred, who was involved, and where goods were damaged or stolen.

One example, highlighted in the bulleting concerned the theft of a large shipment of clothing in Bangladesh, in which thieves replaced a bolt seal with a new one, covering the seal number and replacing it with the original (expected) seal number which looked genuine to a casual observer. Forensic examination was necessary to identify the actual number of the false seal.

The sophisticated method used to bypass security measures, involving the alteration and replacement of container seals, represents a "previously unseen threat," according to TT Club, which says loss due to theft is among the top three causes of claims it receives each year.