THE INDIRECT EFFECTS OF CARGO LOSS, AS OPPOSED TO THE DIRECT FINANCIAL LOSS, ARE EXPLAINED WITH A VIEW TO SHOWING THAT THE LATTER CAN ONLY BE CONSIDERED TO BE THE 'TIP OF THE ICEBERG' WHEN CALCULATING TOTAL LOSS. THE PHYSICAL AND ADMINISTRATIVE FACTORS CONTRIBUTING TO MAJOR THEFT ARE OUTLINED IN SOME DETAIL, AND SOME RECOMMENDATIONS ARE MADE FOR COUNTER-ACTING THEIR EFFECT. CARGO SECURITY, BOTH PHYSICAL AND PROCEDURAL, IS REVIEWED AND RECOMMENDATIONS MADE IN ORDER TO ASSIST GENERAL CARGO SECURITY PROGRAMMES. IN ADDITION, THE THEFT OF, AND FROM, CONTAINERS IS DISCUSSED AND RECOMMENDATIONS MADE AS A GENERAL 'CODE OF PRACTICE' TO HELP REDUCE THE EVER INCREASING INCIDENCE OF THEFT IN THIS TRANSPORT MODE. APPENDED ARE CARGO SECURITY CHECKLISTS COVERING WAREHOUSE, LIGHTING, AND PERSONNEL IDENTIFICATION SYSTEMS. A BIBLIOGRAPHY AND A SUMMARY OF PART ONE, 'PILFERAGE AND CARGO SECURITY, NCJ-34956, ARE ALSO INCLUDED. (AUTHOR ABSTRACT)