May 17, 2004
From Portcalls Website of DMAP (Distribution Managers Association of the Philippines - by Ed Sanchez

Land Transport Headaches Highway Robbery Everywhere

One of the side effects of a growing economy is that more product than ever before is being shipped to warehouses, stores and consumers by truck.

As a result, criminals have now found that there is a fortune to be made by stealing these "warehouses on wheels." Once the exclusive domain of the established organized crime families, dozens of new cargo theft rings have sprung up across the country in recent times.

Due to budget limitations and a redeployment of personnel to homeland security issues, task forces are constantly playing catch-up. When they do successfully apprehend the culprits, lenient criminal penalties oftentimes allow the perpetrators to be back on the street in a few months.

With the large number of trucks on the road, the lax security controls utilized by many firms, the low probability of being caught, as well as the high resale value of the goods, cargo theft has become a multi-billion industry. This has created a major security headache for transportation and distribution companies throughout the country.

Among the most sought-after products being targeted are electronics, cosmetics, computers, fragrances, designer clothing, home entertainment equipment, tobacco products, jewelry, pharmaceuticals, wine, liquor and food." The above four paragraphs might sound familiar to you, and you might ask "So, what's new?"

But it might surprise you that the paragraphs are not about the Philippines, but the United States. I have copied, almost word for word, the first four paragraphs of an article entitled "Cargo Theft: A Growing Epidemic" by Barry Brandman, published in the CLM Logistics Comment, March-April 2004.

This is a publication of the Council of Logistics Management. I only made four deletions/additions so that it would not be obviously about the USA.

The local picture looks the same, except that it is on a smaller scale. The target products are similar, high value easy-to-dispose products.

Companies like Nestle and Procter & Gamble are always at risk. Per CTAP head Col. Rudy de Ocampo, the multi-sectoral MOA (PNP, DTI, BOI, PEZA, PADPAO, Japanese Chamber, CTAP, etc.) signed last year, continues to be in effect.

Data gathered prior to the MOA mentioned the following figures on incidents of hijacking.

1996     68
1997     52
1998     50
1999     74
2000     44
2001     78
2002     115

So far there has been no report on the incidence in 2003 and if the MOA has had any effect. At the North Harbor, INHTA President Teddy Gervacio said that hijacks average one a month.

Pilferage continues using the same 'technology' of boring the rivet and replacing it after the pilferage. Pilferage on exports has been reduced somewhat.