Consolidated Freightways Asks Shippers to Adopt FBI Standards to Protect Freight.

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CF Security Chief Says Shippers & Carriers Have Equal Stake

Consolidated Freightways is asking its customers to adopt security standards it developed in collaboration with the FBI to protect freight.

In a presentation here this week, Kevin Johnson, Director of Corporate Security for Consolidated Freightways (CF), America's third largest LTL trucking company, called on shippers to take an active role in raising the security levels of freight as it moves around the country.

Johnson said that CF has been collaborating with the FBI as well as local and regional law enforcement agencies on a variety of tightened security measures that are designed to prevent freight losses.

He told an audience at the Eye For Transport conference, a professional group of shippers and carriers, that cargo theft losses are now running as high as $1 billion per month in the U.S. While more than two-thirds of the losses occur during the transportation of freight, Johnson said shippers and carriers can increase security simply by upgrading the information that moves with specific freight.

"For example, serial numbers and model numbers of products should be available for every pallet of freight we carry. CF is working with shippers to develop better packaging processes, and is linking in-house loss-prevention teams with transportation managers," he explained. "In many cases, these are functions that can be upgraded right now."

Johnson, who currently chairs the Security Committee of the American Trucking Associations, said a collaborative effort among shippers and carriers will have a great impact on freight losses. He noted that the relationship between a carrier and the shipper is already extremely loyal and trustworthy, and the business environment is well established to work closer together.

Johnson said CF security teams have collaborated with the FBI to develop an array of security and loss prevention measures. "We need to prevent losses before they occur, and we need a greater capacity to track and trace when freight is stolen," he explained, noting that law enforcement agencies on every level have been stretched to limits.

"Security has never been more important," Johnson asserted. "We all have a stake in prevention, recovery and, where needed, prosecution."

Diversion Markets Are Growing

Johnson said shippers and carriers often find it difficult to investigate and prosecute losses. Consequently, cargo theft often comes with relatively low risk. Johnson also pointed to the growth of diversion markets such as e-commerce auction sites that sell everything from full pallets of DVD players, laptop computers, Rolex watches and power tools.

"These e-commerce pawnshops are enormous markets for the sale and distribution of stolen property," he said. "Only by working together can we effectively squeeze the distribution channels for stolen goods."

Johnson said that the FBI enters the picture only after a crime has been committed. "When shippers and carriers fulfill their due diligence, we can quickly turn over relevant information to the authorities who can track and trace the property. With good information, the law enforcement process can avoid the needle-in-the-haystack search."

CF Background

As Director of Corporate Security for CF, Johnson is responsible for all of CF's internal and external security forces. His responsibilities include freight, facility and employee security, criminal investigations, fraud and freight theft.

With $2.2 billion in annual revenues, CF is a transportation company handling thousands of transactions every day. The company employs 18,000 people in more than 300 locations.

Consolidated Freightways Corporation is comprised of national less-than-truckload carrier Consolidated Freightways, third-party logistics provider Redwood Systems, Grupo Consolidated Freightways, the company's subsidiary in Mexico, Canadian Freightways LTD, and CF AirFreight, an air freight forwarder.

More information about the company is available at www.cf.com. CF's corporate stock is traded on the NASDAQ exchange using the CFWY stock symbol.

The Eye for Transport is a forum of shipper-carrier professionals who discuss the major issues affecting the transportation industry.