IBC joins forces with Canadian Trucking Alliance and law enforcement, expanding program to fight $5 billion problem of cargo theft
Toronto, ON (Mar. 27, 2014) – Insurance Bureau of Canada (IBC) and Canadian Trucking Alliance (CTA) are joining forces, supported by four large Ontario police services, to launch a national program to fight cargo theft. The rapidly escalating crime is costing Canadians up to $5 billion a year and is a significant problem in transportation hubs in southern Ontario, and in Vancouver and Montreal.
IBC and CTA will expand the current Cargo Theft Reporting pilot program, which is now in Ontario and Quebec, across Canada, so that the trucking community, insurers and the authorities can better share timely information to help crack down on cargo theft.
All insurers in Canada and trucking association members can now report cargo thefts directly to IBC via an online submission form. IBC will act as a clearing house for cargo theft data, and will collect, analyze and promptly share information with a national network of law enforcement partners including Canadian and American border agencies. Law enforcement can ask IBC to search the database to help identify property and to speed its recovery.
“This expanded and improved reporting process will help prevent crimes and lead to faster recovery of stolen goods and prosecution of cargo theft criminals,” says Garry Robertson, National Director of IBC’s Investigative Services.
A 2011 study commissioned by CTA, which pegged the cost of cargo crime at $5 billion per year, also linked it to organized crime rings, which use the proceeds of cargo theft to fund such activities as gun and drug smuggling. Cargo crime covers a number of criminal acts including theft, fraud and hijacking.
To highlight the sophisticated nature of organized cargo theft, IBC’s Robertson gives the recent example of a tractor-trailer load of T-shirts. The trailer was stolen at 3 a.m. north of Toronto and by 6 a.m. some shirts were for sale at discount stores in small towns on Georgian Bay. By 9 a.m., the rest were on another truck crossing the Peace Bridge bound for Los Angeles with a final destination of India.
“To fight cargo theft, we must be as organized as the criminals,” Robertson says.
“Society can no longer view cargo crime as being victimless,” says David Bradley, President and CEO of Canadian Trucking Alliance. “It is exacting a huge toll, running into billions of dollars, on the Canadian economy and threatens the security of all Canadians. The development of Insurance Bureau of Canada’s nationwide cargo crime database is an essential tool for recovery of stolen freight and equipment, apprehending the criminals, developing and implementing appropriate countermeasures and quantifying the scope of the problem. CTA is pleased to partner with IBC and police services to help fight this growing problem and to encourage our members to utilize this new tool.”
Peel Regional Police Superintendent Bob Devolin says, “Cargo theft is not just a problem for trucking companies and manufacturers; it affects consumers and puts a strain on law enforcement agencies. In order to effectively combat this growing issue, we are pleased to share the news of the expansion of this pilot project. We will continue to have a close working relationship with our law enforcement partners, IBC and CTA to recover stolen goods and fight back against this costly crime. Cargo theft is a sophisticated and organized enterprise, and we take this crime very seriously.”
Cargo theft involves a sophisticated network of criminals who commit the thefts and distribute the stolen goods. The stolen goods are usually items that people use on a daily basis such as laundry detergent, T-shirts, dry goods or electronic components. Well-organized systems are in place to move the products for quick sale in the underground economy. Often the products are parcelled out and sold well before the theft is reported. A thriving black market keeps these sophisticated and networked thieves in business.
The reporting of cargo theft is sporadic, which makes property recovery and prosecution a challenge. Although some companies do report their losses, others do not for fear of a damaged reputation, a negative impact on their business and on customer confidence, and increased insurance premiums. When losses are not reported, stolen property cannot be identified or recovered and thieves are not prosecuted.
But the effects of cargo theft reach beyond its direct impact on the Canadian economy. Cargo that is stolen and sold in illegal markets shifts revenues from legitimate businesses to criminals and depletes tax revenues. There is also the potential for violence by those who commit cargo crime, which puts the well-being of truck drivers and other industry employees at risk.
The Cargo Theft Initiative began as a pilot reporting project in 2011 in Ontario and Quebec. Working with CTA and member companies, IBC collected, analyzed and shared cargo loss information with law enforcement agencies. The project was an important first step in gathering consistent information on these crimes and led to several recoveries of stolen trailers and consumer goods.
IBC urges citizens to report cargo theft. Anyone witnessing a crime should immediately call the local police. Anyone with general information that would assist in combating cargo theft can call IBC’s confidential 1-877-IBC-TIPS line (1-877-422-8477) or go online at www.ibc.ca to fill out a tip form that can be sent to IBC anonymously.
About Insurance Bureau of Canada
Insurance Bureau of Canada (IBC) is pleased to celebrate 50 years as a valuable resource for insurance information. Since 1964, IBC has been working with governments across Canada to make communities safer, championing issues that directly affect Canadians and the property and casualty (P&C) insurance industry. IBC is the national industry association representing Canada’s private home, car and business insurers. Its member companies represent 90% of the P&C insurance market in Canada. The P&C insurance industry employs over 118,600 Canadians, pays more than $7 billion in taxes to the federal, provincial and municipal governments, and has a total premium base of $46 billion.
To view media releases and information, visit the media section of IBC’s website at www.ibc.ca.