NFFS Responds to Member Concerns on Shipping Fraud and Cargo Theft

Over the past several months, NFFS members have raised increasing concerns about shipping fraud, cargo theft, and deceptive delivery practices affecting high-value industrial freight. These risks are real and increasingly sophisticated, impacting manufacturers across the supply chain, including non-ferrous foundries shipping ingot, critical castings and high-value components.

NFFS takes these concerns seriously. In response, we engaged directly with our affinity shipping partner, Estes, to better understand the safeguards they have in place to protect member freight and the steps being taken to prevent fraudulent activity.

Following those discussions, Estes shared a more detailed overview of the controls and monitoring processes they employ—many of which occur behind the scenes on a daily basis—to reduce the risk of cargo theft and delivery diversion.

Common Indicators of Potential Shipping Fraud

Estes trains its teams to identify red flags that may signal attempted fraud, including:

• Deliveries requested to non-traditional locations, such as residences, storage facilities, vacant businesses, parking lots, or rented box trucks
• Freight types inconsistent with the delivery location, such as commercial or industrial equipment being delivered to residential properties
• Requests for drivers to call the consignee prior to delivery, which can be used to manipulate routing
• Difficulty communicating with the consignee, sometimes tied to language barriers or inconsistent information
• Requests to change the delivery location shortly before or during delivery, including dock pickups or unconventional sites

Preventative Measures Implemented by Estes

To counter these risks, Estes has implemented multiple layers of preventative controls, including:

• Direct shipper confirmation for all delivery location changes
• Strict identification requirements for all dock pickups
• Drivers are required to deliver only to the originally specified location, with no deviations
• If a driver is asked to change locations at the delivery site, they must move to a safe area and immediately contact terminal management
• Terminals are required to notify Estes’ Security Group immediately when fraud is suspected

In addition, Estes maintains cameras on all docks, prohibits double-brokering, and enforces a policy that only the original payor may request delivery reconsignments.

Best Practices for NFFS Members to Safeguard Shipments

While carriers play a critical role, foundries also serve as an important line of defense against shipping fraud. NFFS encourages members to consider the following best practices when shipping high-value or time-critical freight:

• Verify consignee information carefully
  Ensure delivery addresses, contact names, and phone numbers are accurate and consistent with prior transactions.
• Limit delivery change authority
  Internally designate who is authorized to request delivery changes and communicate that only those individuals may do so.
• Avoid last-minute delivery changes when possible
  Sudden reconsignments increase risk and should be treated with heightened scrutiny.
• Use clear, specific delivery instructions
  Avoid vague descriptions and ensure dock, gate, and receiving details are clearly documented.
• Be cautious with call-ahead requests
  Understand that unsolicited requests for drivers to call before delivery can be a red flag.
• Maintain consistent communication with your carrier
  Notify your carrier immediately if anything about a delivery request or communication seems unusual or inconsistent.
• Flag high-value or sensitive shipments
  Inform the carrier when freight is particularly valuable or mission-critical so appropriate precautions can be applied.

What This Means for NFFS Members

Shipping fraud and cargo theft continue to evolve, but strong carrier controls—combined with informed shipper practices—remain the most effective defense. NFFS appreciates Estes’ proactive approach and their willingness to engage directly with our Society to address member concerns.

Members who would like a deeper discussion on shipping security practices or who want to better understand how to protect their shipments are encouraged to contact NFFS. We are happy to facilitate direct conversations with Estes’ compliance leadership as appropriate.

As always, NFFS remains committed to listening to member feedback and working with trusted partners to reduce risk, protect operations, and strengthen the non-ferrous foundry supply chain.