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ENHANCING SHIPPING

CONTAINER SECURITY Dec 18, 2021

hipping containers are the

means by which the world

moves its goods. “Maritime

shipping is the backbone of world

trade; it is estimated that more than

80 percent of all goods are carried by

sea. In terms of value, global

maritime container trade is estimated

to account for around 60 percent of

all seaborne trade,” according to the

statistical information website

Statista.com. Statista.com also

predicts that the global shipping

container market — which was worth

$8.7 billion in 2019 — will “surpass

the value of 12 billion U.S. dollars in

2027.”

Global Secure Shipping has a federally-funded

Collaborative Agreement with DHS, DOD, UMaine,

and Georgia Tech Research Institute to produce the Secure Hybrid Composite Intermodal

Container (SHCIC) shown above. GSC image.

With so much money riding on (and

within) shipping containers, keeping

their contents safe from theft is a top

priority for shippers worldwide. This

is why enhancing shipping container

security is of prime importance — but

how to do it?

To �nd out, TSI magazine picked the

brains of three shipping container

security experts.

Bill Schoenherr is vice president and

general manager of NovaVision. It is a

technology company that specializes

in anti-tampering and anti-

counterfeiting products such as

hologram labels, tamper evident

stickers, security tape, and

mechanical security seals. “We

conduct business globally and have

over 5000 active customers each

year,” said Schoenherr. “Our major

customer groups include

governments (U. S. A. federal, state,

county, municipal and international),

large international companies,

retailers, and collectible companies.”

One of the most common theft-related security

violations is having legitimate ‘security seals’

removed from shipping containers and replaced with poorly-made fakes, says NovaVision vice

president and general manager Bill Schoenherr.

Greg Miner is Conexwest’s operations

manager. “Conexwest is one of the

leading container providers in the

US,” he said. “We supply rental, and

sale containers. We also specialize in

the manufacturing of custom built

containers.”

Robert Lindyberg is CEO of Global

Secure Shipping (GSS). His company

“provides comprehensive cargo

security solutions developed by the

University of Maine in partnership

with the U.S. Department of

Homeland Security, (DHS) under the

U.S. Department of Defense (DOD)

Title III Defense Production Act, and

industry leaders,” said Lindyberg.

“GSS is the primary commercial

partner in a federally-funded, multi-

year Collaborative Agreement with

DHS, DOD, UMaine, and Georgia Tech

Research Institute to produce the

Secure Hybrid Composite Intermodal

Container (SHCIC) – also called the

Global Secure Container.”

Here’s what they told us.

THREATS TO SHIPPING CONTAINERS

Given the global scope and multi-

billion-dollar value of shipping

container-based trade, it is not

surprising that “the industry as a

whole has many threats,” Miner told

TSI magazine. “Take a construction

site, for example. You have people

who will either cut the container and

enter through the side walls, cut

through the lock rods on the front, or

even go as far as trying to pull the

lock rods o� by attaching a chain to a

truck and driving away.”

According to Schoenherr, the most

common theft-related security

violation experienced by NovaVision

customers is having legitimate

‘security seals’ removed from their

shipping containers and replaced

with poorly-made fakes. “The

criminals often do not bother to

match the original serial number,” he

said. In the number two position:

“Security seals are attacked physically

in an attempt to remove and reuse

the original seal (no change in the

serial number).”

The third most common security

violation occurs when “container

doors are physically removed at the

hinges without disrupting the original

security seals,” said Schoenherr.

“After goods are removed, the hinges

are reattached.” And �nally, the

number four most common crime is

when “security seals are replaced

with a counterfeit with matching

serial numbers.”

All of these violations can occur when

thieves open shipping containers,

steal their contents, and then try to

cover their tracks.

These threats to shipping container

security were serious enough prior to

the pandemic. Since then, “the

shipping and supply chain disruption

initiated by COVID-19 has resulted in

major problems including bottlenecks

at major ports and increased dwell

times at unsecured railroad depots,

increasing the risk of container break-

ins, theft, and/or loss,” Lindyberg

said. “In September 2021, the dwell

time for containers at 11 major

railroad depots was an average of 9.8

days, up from 5.9 days in February.”

The longer a shipping container sits at

an unsecured location, the more time

thieves have to loot it.

But have these extended dwell times

actually resulted in more thefts from

shipping containers? On this point,

opinions are mixed.

“Yes, especially for high value goods,”

said Schoenherr. “The National

Insurance Crime Bureau reports that

there are over 8,500 thefts annually

resulting in over $15 billion in losses

in the US.”

“I don’t necessarily think they have

been on the rise,” countered Miner. “I

do believe that with the container

gaining more popularity and being

used in so many di�erent ways, that

there are more opportunities for

these types of break-ins/theft.”

A RANGE OF SECURITY SOLUTIONS

Theoretically, it is possible to deter

theft from shipping containers by

ringing them with armed checkpoints

and constant patrols conducted 24

hours a day. Practically, this level of

security is not economically viable

because of the exorbitant cost and

logistical issues it would add to the

shipping process – especially if the

container’s contents are of relatively

low value and therefore not attractive

to most thieves.

This is why “there are lots of di�erent

levels of security” when it comes to

shipping containers, Miner observed.

At Conexwest, “we place lock boxes

on all of our rental containers,” he

said. “This acts as a secondary means

of entry, and will deter most who try

to enter the container through the

lock rods.”

To protect more valuable contents,

Conexwest customers can use an ISO

Heavy Duty Lock on their container

doors. “It is a lock that clamps onto

the lock rods and has a keyed point of

entry,” said Miner.

NovaVision takes a graduated

approach to shipping container

security. The tactics it recommends

are designed to correspond to the

value of the goods inside speci�c

containers, based on a ‘risk

assessment’ of their attractiveness to

thieves and how secure their physical

locations are. “For example, low value

shipments in low-risk areas may only

require a single security seal,”

Schoenherr said, “while high value

shipments may require multiple

layers of security, especially in high-

risk areas.”

Recent shipping and supply chain disruptions have resulted in major problems including

bottlenecks at major ports and increased dwell

times at unsecured railroad depots, increasing the

risk of container break-ins, theft, and/or loss, says

Robert Lindyberg, CEO of Global Secure Shipping. GSC images.

To aid TSI readers in choosing the

right security defenses for their

shipping containers, Bill Schoenherr

compiled the following four options

listed in order of increasing security

and supported by explanatory

photographs.

In the most low-risk scenarios, “the

door latch/lock can be secured with a

Bolt Seal or Cable Seal,” he said.

To add another layer of security in

more risky situations “and to protect

both container doors, also wrap the

locking rods with another security

seal,” said Schoenherr. “This can be

accomplished by using a single cable

seal with a 76” long cable, which can

secure both the latch and wrap the

locking rods. Some security seals

include multiple independent locking

mechanisms (a bolt and cable seal

combined or two independent locks

on one cable seal), which in addition

to convenience of use, o�er more

security because the seals are unique

and two cuts are required to gain

access to the shipping container.”

In low-risk scenarios, the container door latch/lock can be secured with a bolt seal like the

one above or a cable seal like the one below.

NovaVision images.

For situations where more protection

is required, Bill Schoenherr

recommended adding a ‘barrier seal’,

which is a heavy-duty mechanism

that shackles the two locking rods

together. “This o�ers more security

because it requires special cutting

tools to remove,” he explained. “The

removal process requires more time

and the special removal tools

(grinders, et cetera.) create more

noise,” making it harder for the

thieves to go undetected on site.

For an even higher level of shipping

container security, “you can include

‘Cargo Door Seals’, which are extra-

large (typically 3” x 12”) tamper

evident labels,” said Schoenherr.

“These cargo door seals can be used

in conjunction with the other security

seals and can be applied in other

vulnerable areas such as across the

opening seam of the two swing doors

on the container, and over the hinges

of each swing door on the container.”

If needed, place your shipping

containers in securely fenced-in

outside areas or inside locked

warehouses, with CCTV camera

coverage, motion detection and

regular patrols. But again, this level of

security is only justi�ed if the

contents are of high enough value

(and easy enough to ‘fence’) to o�set

the extra cost.

TRACKING AND TRACING SOLUTIONS

In today’s connected world, shipping

container security can be bolstered

by tracking and tracing solutions.

Some of these solutions are simple,

but they do the job. A case in point: At

NovaVision “our seals use serial

numbers and barcodes,” Schoenherr

said. “Having the security protocol

and discipline to track the serial

number is very e�ective.”

Shown here, a single cable seal with a long cable is used to secure the latch and wrap the locking

rod for an extra layer of protection. NovaVision

image.

At Conexwest, “there are GPS systems

that exist for the rental �eet, plus

tracking devices,” Miner said. Again,

discipline and consistent adherence

to proper procedures are required to

make them work. “The biggest issue

with the tracking devices is that there

is a lot of data entry that corresponds

with them,” he said. “If it isn’t handled

correctly, it doesn’t do any good.”

On a more complex level, GSS and

partner AKUA are providing “tracking

and security solutions for intramodal

shipping containers that are fully

e�ective across all modes of

shipping,” said Lindyberg.

For instance, “GSS’s Global Secure

Container is CSC/TIR certi�ed, and

provides six-sided security against

unauthorized door opening, or

penetration of the walls, door, roof,

or �oor,” he said. “Coupled with the

AKUATrack system, this solution

provides the shipper with container

location and security status,

delivering full, end-to-end supply

chain tracking and monitoring.”

DEALING WITH AND DETERRING CORRUPT EMPLOYEES

Even the most secure shipping

container is at risk from corrupt

employees. This is why shipping

companies need to take steps to

detect such employees within their

ranks and deter them from taking

illegal actions when opportunity

arises.

Spotting potential thieves during the

hiring process is a good way to keep

them and shipping containers safe.

However, “in addition to initial

background checks, periodic

background checks (every two or

three years) for existing employees

can highlight possible criminal

activity, plus it sends a strong

message to the employees,”

Schoenherr explained. “If the

background check includes �nancial

information, the company can better

understand if employees are

experiencing �nancial hardships,

which can be a motivator for

temptation.”

Random drug testing can also

highlight employees at risk, he added.

“An employee on drugs may require

an infusion of cash to maintain the

habit and the company is a

convenient target, especially if its

shipping containers have contents of

high value that are easy to resell.”

The AKUATrack system provides the shipper with

full, end-to-end supply chain tracking and

monitoring of the container location and security

status. GSC image.

“While it is very di�cult to thwart all

corrupt employees, having a security

protocol and discipline to track the

serial numbers can discourage many

‘inside jobs’,” Schoenherr noted.

“Periodic meetings with employees to

discuss security measures and re-

train on procedures can also be

helpful.”

ADVICE TO READERS

To conclude this look at enhancing

shipping container security, TSI asked

the experts to provide some last

words of practical advice.

Greg Miner’s advice was short and to

the point. “Place a lock box on your

container and have multiple locks;

one inside the lock box and one on

the latches,” he said.

Bill Schoenherr’s advice was more

detailed.

First, shipping container users should

make periodic risk assessments and

base their security protocols on those

assessments. “The risk assessment

should also include the full delivery

cycle,” Schoenherr said. “With the

current supply chain disruptions,

shipping containers are at risk for

longer periods of time — including

extended storage at ports and

warehouses.”

The level of risk should be

determined based on the entire

shipping process, he added. “We

highly recommend assessing your risk

based on supply chain issues, your

company’s protocols and the product

being moved through the supply

chain. For instance, high value/high

risk items like electronics and

pharmaceuticals may require

additional levels of security than a

lower value cargo.”

Next, shipping container users should

be open to employing all security

options. “While a high security bolt

seal is good at a minimum, there are

better levels of security seals as

previously stated that protect both

doors of a container, cable seals and

locking bar seals,” said Schoenherr.

When the contents are su�ciently

valuable, nothing is o� the table.

For cross border shipments,

NovaVision recommends using high

security (H) seals, which have been

certi�ed to ISO17712. “A requirement

for ISO 17712:2013 is that all ‘H’ seals

must be independently tested at least

every 24 months,” Schoenherr said.

“Ask the supplier of your bolt, cable

and barrier security seals to provide

the manufacturer’s written

veri�cation that the seal was

independently tested to comply with

ISO 17712:2013 as a high security

seal. To meet the ISO standard, the

testing and certi�cate must be dated

within 24 months of your purchase.”

(Note: All of NovaVision’s high security

cable seals, bolt seals and barrier

seals are certi�ed to ISO17712.)

“Customized seals o�er more security

than standard seals,” he added.

“Changing up your security seals or

layering di�erent solutions is a good

way to remain ahead of the

counterfeiters.”

Finally, shipping container users

should conduct random security

audits to ensure compliance with

their protocols, both with their own

sta� and third parties who handle

containers on their behalf.

Taken as a whole, all of these options

can enhance shipping container

security. Granted, no security system

is perfect, but taking steps to

enhance your own can persuade

thieves to look for easier targets

elsewhere.

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