Shielding your profit

  • Technical Articles
  • May 01,18
Security Seals are not just a statutory need, explains Rajesh Kumar Banka, they are meant to protect the profit too.
Shielding your profit

Security Seals are not just a statutory need, explains Rajesh Kumar Banka, they are meant to protect the profit too.
 
Tamper evident and barrier security seals are often used on loaded truck, trailer, railway wagons and ocean container as preventive measure to secure the cargo from any kind of threats compromised by thief, terrorist and other unlawful acts. Security seals are the only barrier between a shipment of high value goods and a thief. The protection level depends on the type of security seal used, how it is affixed and from where it is procured.
 
Security seals are generally passive, one-time devices used to detect tampering of or entry into the cargo spaces of trucks, trailers, railway wagons and ocean containers. In view of alarming increase in illegal, criminal and dishonest activities, cargo security seals have grown increasingly more important and more sophisticated. Companies can now choose from a variety of mechanical and electronic seal options to protect their goods in transit. The main advantages of a security seal are security and tamper-evidence. The presence of a security seal may cause a would-be thief to reconsider the target or it may provide enough resistance that the thief is caught. The selection of an appropriate security seal is based on several factors viz. the nature of the cargo, its value and theft attractiveness, its routing and destination as well as the chosen mode of transportation. Other considerations are the duration of the transit, whether the conveyance and cargo will be left unattended and, if so, for what length of time.  The following tips will assist in selecting the right cargo seals.
 
Evaluate and Understand what you are protecting
 
You need to evaluate the nature and level of threats to your cargo. Your major concern is about theft or tampering? Do you own the goods or are you liable for theft or potential damage being a logistic company? Perform historical research on your products' vulnerability to theft, your carriers' theft history, and your supply chain vulnerability as it relates to packaging and unit volume. Evaluate each seal category for its relative effectiveness in the environment and conditions in which it will be used.
 
Determine the value of your cargo in transit
 
Many products are more likely to be stolen than others. For example high-priced mobile, computers and allied equipment, drugs, high value industrial raw materials, jewellery, electronics and machinery are attractive to thieves, while terrorists may target explosives, gases, or corrosives. Where does the product fall on that scale can help determine the type and strength of seal you need. Different security threats require different security seals. Security seals for bulk liquid tankers require flexible cables. 
 
Educate yourself about available security seals
 
It is very important to know the availability of different types of security seals and understand their differences? Tamper indicative, tamper resistant, barrier, and electronic seals are most commonly used. Tamper indicative security seals are designed to show evidence of any tampering or attempts at tampering. These are generally strap-type seals fabricated from flat, tin or galvanized steel or plastic since strength is not a critical feature. They can be of fixed or adjustable lengths. Indicative seals are meant to leave unambiguous, non-erasable evidence of unauthorised access. If a cargo is of low value and is being shipped in a short, or inter-plant or other closed-loop transport system, then a simple, low cost indicative-type seal will usually be suitable.
 
For a high value shipment or one transiting a high risk area, tamper resistant security seal should be used that combines greater protection with the tamper-evident characteristics. Tamper resistant security seals have more strength than tamper indicating seals and provide higher level of protection. Once broken they cannot be reused and provide tamper evidence. They are generally made of combination of high strength plastic and metal inserts or steel wire. 
 
Most cargo security professionals recommend the use of barrier-type security seals for high value loads over any distance in any mode of transportation. These seals are typically hardened, solid or cable alloy steel. Most have two-piece (a bolt and locking chamber or barrel), cable security seals with shear-off key or self-locking mechanisms. They can be broken with bolt cutters or a cable cutter. While they can be removed, they can act as a deterrent to defeat the seal.
 
It is necessary to visually inspect the seal, compare its security ID and serial numbers, and determine if it was manipulated during transit. Bolt container seals, and cable security seals are barrier seals but physical properties are not the criteria to judge their ability to defend your load. The seal's placement on the door is the main criteria for effectiveness. Electronic seals are embedded with an RFID chip that provides tracking capability, but they rarely provide physical barrier security.
 
Evaluate your shipping modes
 
Do you move your products via trailer, container, pallet, or small parcel? The transport mode you use to ship products determines what kind of security seal you need. For shipping small packages, such as jewellery, mobiles, drugs or cameras, packaging security seals—either self adhesive security labels,  self-locking security seals, metal insert pull up security seals or pallet-locking steel pallet clip seals — enhance security and allow the consignee to see if a package was violated. When shipping a full truckload or container load that moves from origin to destination without break bulk, a locking bar or wrap-around cable seal effectively secures the entire shipment. Pallet seals for these conditions are redundant and do not effectively secure the load. On the other hand, an LTL shipment of products such as pharmaceuticals, cosmetics or perfumes, is best secured by pallet covers and Ppallet clip seals.
 
Know the customs regulations
 
If you send shipments to international destinations, you need to understand Customs and Border Patrol's (CBP) shipping rules, and consequently purchase the right type of seals. This is easier said than done. The recent ISO/PAS 17712 mandate provides carriers and shippers a set of physical standards to adhere to and use the right and ISO/PAS compliant security seals. 
 
Analyse how easy a seal is to install and remove
 
It is challenging for many shippers to apply even a bolt seal correctly, and many consignees fail to understand how to inspect seals upon delivery. Though you may select a seal for its ability to secure a cargo, it does not mean your consignee will accept it. Provide carriers and consignees with training and a reasonable template to help them validate the seal at all times, and ensure that consignees have the proper tools and knowledge to remove the seal once a shipment is delivered. Select seals with respect to your carriers and consignees to help effectively protect the load, regardless of who has care and control of it.
 
Investigate quality and solicit quotes and data
 
Invite seal manufacturers to talk with your staff and demonstrate their products. Have vendors explain their lock and seal techniques, and then do your own ‘black hat’ comparison before making a choice. Do not choose seals in a vacuum, as you may not be up to date on your cargo's ‘threat de jour’. It is always recommended to procure security seals from reputed and established manufacturers directly. Procurement of security seals online or through traders should be discouraged. 
 
Look beyond price
 
Too often, price is the deciding factor in seal selection. To ensure the security of freight in transit, you will have to spend money—it is simply a cost of doing business. Select seals based on their quality and appropriateness for your cargo type, shipping mode, and physical environment first, then shop price. Look for vendors who help customers choose the correct seal, and use them as a free resource. Usually the cost of security seals is treated as expense but actually they are investment as they protect your cargo from theft, adulteration, misconduct or terrorism activities and save your profits, reputation and legal harassment.
 
Understand the accountability of seals at origin
 
If a seal can be replicated or if sequential serial numbers combined with security identifier are not used, it can become suspect. Once your selected seals have been delivered, it is important to visually inspect them to ensure that they have not been compromised en route, and keep a detailed log of the delivered security seals. The seals should then be stored in a secure area, only accessible by authorised personnel. They will need to maintain a log of outbound seals and record information before a security seal is allowed to leave your secure storage location, such as time of release, seal description, application, vehicle number and identity of the person installing the seals. Only personnel who have been trained on the proper installation method should be allowed to operate the security seal. Without sufficient standards for the issuance and control of the seals, their effectiveness is diminished. 
 
Inspection before applying the security seal
 
Before the seal is applied, you will need to conduct a visual inspection of the seal and the locking area. To confirm if the seal has been installed correctly, gently pull the seal apart to ensure that the locking mechanism has been properly engaged. This will ensure the goods for transit are secure for delivery.
 
Inspection before removal at destination
 
When the cargo arrives at its destination, the security seal should be visually inspected for any irregularities or tamper marks. During inspection, gently pull the seal apart to ensure that the locking mechanism has not been compromised. Any errors or discrepancies can highlight potential attempts of pilferage or theft, and should be reported and documented immediately.
 
Proper disposal of used security seals
 
The security seals should be destroyed after use, to prevent fraudulent use of old seals. Methods of destruction such as crushing and cutting will ensure that the locking mechanism and marking of the seals are no longer distinguishable after use.
 
When an indicative seal is used in combination with a barrier seal, the load remains exponentially more secure. It is advisable in the interest of the shippers and the transporters that a system should be immediately adopted for use of appropriate type and variety of the tamper evident and barrier security seals in warehouses and transportation of any cargo irrespective of value in all road transport, courier, train, ship, airfreight, truck, trailer, tractor, wagon cargos to combat with and to substantially reduce cargo theft, pilferage and adulteration.
 
In choosing a seal, it is important to bear in mind that unit cost is not always the most decisive economic factor associated with using a seal, nor is cost necessarily well correlated with the level of security a seal can provide. It is important to choose the right seal with the reliable seal manufacturers.
 
Rajesh Kumar Banka is the Managing Director of Safcon Seals Pvt Ltd, Kolkata and has more than two decades’ experience in international security seal industry. Safcon is one of the few handful companies in the world which provides complete security seal solutions – be it plastic, metal, adhesive or combination of plastic and metal seals. For more details contact on email: sales@safcon.co.in

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