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With 'Prime Day' ahead, here's what to do about porch pirates

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With 'Prime Day' ahead, here's what to do about porch pirates

Amazon’s annual sale starts Tuesday, which means even more impulsive purchases will be packaged and dropped onto porches across the state this week.

Some of those parcels won’t make it into the buyer’s home, however. That’s because package theft is commonplace in California, as well as the rest of the United States.

According to estimates compiled by Capital One, 119 million packages were stolen in 2023 — a big number, although it represents only about 0.5% of the 21.7 billion shipments in the U.S. that year.

With Americans receiving multiple packages per week on average, the odds eventually catch up to many consumers. According to Security.com, 44% of those surveyed last year said they’d had a package stolen at some point.

In California, one out of five people have at least one package stolen every year, Capital One estimated. That makes them a bit more likely to be victimized than other Americans, but their average loss — $40 — is lower than the typical loss for all U.S. consumers, which Security.com put at roughly $50.

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The best defense against package theft is also the least practical one: Be at your door when the delivery person arrives. Short of that, Amazon and other delivery services offer options that are more secure than your porch.

If you do fall victim to package theft, you have a number of different routes to a refund. None of them are guaranteed, however.

Here are answers to some common questions about porch piracy and tips for how to avoid it.

If my package is stolen, how do I get a refund?

Under normal circumstances, no one is legally obligated to cover your losses to porch pirates. One exception would be when the delivery company is responsible for the loss — for example, when the package is stolen by the driver or delivered to the wrong address.

Some retailers will refund your money to keep you happy, and you may be able to wrangle a refund from the delivery company, especially if the package had been insured. Whatever route you take, you’ll have to jump through some hoops.

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Step 1 is determining that the package has actually been delivered. You can (and should) enroll in services from the U.S. Postal Service, UPS and FedEx that let you to track all the packages they’re delivering to your home. In many cases, the services can send you a text as soon as your package arrives.

Be forewarned that the notifications are not 100% accurate; drivers will occasional mark a package delivered prematurely, then bring it to your doorstep a day or two later. Amazon advises people to wait two days before concluding that the “delivered” package has definitely been delivered — and taken.

Don’t assume that a package has been stolen just because it’s not at your front door. Different drivers use different techniques to deter porch pirates, so make sure to look around your property in case the driver found a drop-off spot that was easy to reach but out of sight.

Step 2 is filing a police report. You probably won’t get the “Law & Order” treatment of your lost item; you’re filing a report mainly to create a public record (and because some sellers require it), not to launch an investigation.

Step 3 is contacting the seller. If you ordered from Amazon, the seller often turns out to be a third party selling through Amazon’s Marketplace. How the seller responds will vary. Some will file a claim with the delivery company for the insured value of the package, then use the proceeds to make a refund. Others may simply tell you that it’s your problem to solve.

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Amazon has a reputation for making refunds when items are stolen after Amazon delivers them, especially when the items are from third-party sellers covered by the company’s “A-to-z Guarantee.” But there’s no blanket promise of refunds.

“While the vast majority of deliveries make it to customers without issue, we recognize package theft is a reality all delivery companies contend with, especially during busy times of year,” said Montana MacLachlan, an Amazon spokesperson. “We encourage anyone who’s been a victim of theft to report the crime to law enforcement and notify Amazon’s Customer Service team so we can provide any assistance possible.”

If Step 3 fails, Step 4 is filing a claim with the company that delivered the package — you can do so through its website, and you typically have to file it within 60 days of the scheduled delivery date. You’ll need to provide a receipt, invoice or other proof of the item’s value.

Although FedEx, UPS and other delivery companies pledge to investigate claims, they don’t promise refunds. Packages are routinely insured for up to $100 by FedEx and UPS unless the shipper pays for more insurance, so even if your claim is approved, whether you recover the full value could depend on whether the shipper bought extra insurance. Also, if UPS approves a claim, it typically pays the shipper, not you, so you’ll have to rely on the shipper to reimburse you for your loss.

Your homeowner’s or renter’s insurance covers stolen packages, but chances are your deductible is greater than the value of the sweater or Instant Pot taken from your porch. If you paid for the item with a credit card, you may have a better option: Visa, Mastercard and American Express all offer a form of insurance that covers theft losses, with limits on the types of items and amount of loss covered. You can submit a claim through the relevant card’s website.

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How do I prevent my packages from being stolen?

Delivery companies offer a number of ways to protect your deliveries. The most straightforward (but least convenient) one is having your package delivered to one of the company’s retail outlets or partners, then picking it up from there.

Amazon has self-service lockers at thousands of retailers, groceries, pharmacies and convenience stores across the country. You can search for one near you on Amazon’s website.

UPS allows users of its My Choice service to have all their deliveries made to a nearby UPS Store outlet or retail partner at no extra charge. If they want to change the delivery of just one package, UPS charges a $6 fee unless the customer has a My Choice Premium membership, which costs $20 a year. To select an alternative location, sign into your My Choice account and follow the prompts under Delivery Preferences. To pick up a package there, you’ll need to present an ID that shows an address that matches the one on the shipping label.

FedEx offers to hold your packages for up to seven days at one of its retail partners, including FedEx Office locations, Walgreens, Office Depot and Dollar General. You can search for a location on the FedEx website.

For no additional charge, you can arrange for all of your deliveries to go to an alternative location, or just set them one at a time. You’ll pick the package up by showing a government-issued photo ID and proof of address, or you can provide a QR code to someone else so they can pick it up for you.

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To get started on the FedEx site, either log into you FedEx Delivery Manager account or enter the tracking number for the package you’re expecting.

Alternatively, all three of those companies allow you to redirect a package to a neighbor you know will be home to receive the delivery. They also allow you to specify potentially safer spots on your property or in your building for packages to be dropped off. And if you’re away on vacation, UPS and FedEx allows you to delay your deliveries for one to two weeks.

Amazon offers another option in certain parts of the country if you’re enrolled in Amazon Prime and have an internet-connected garage door opener: Its drivers can deliver packages inside your garage. Going this route, however, requires you to give Amazon the ability to open your garage, which will be encoded into the label on your package for one-time use. It’s a leap of faith, although the company says it has a number of safeguards, such as verifying “the driver, package and package location via multi-step authentication before granting them temporary, one-time access to your garage.”

When ordering something online, try to have the shipper require a signature for delivery. You won’t be given that option often, though; it’s typically used to protect expensive items, such as laptop computers.

Some security consultants recommend installing a security camera or a doorbell with a built-in webcam, which can record porch thieves in the act. That may help you obtain a refund from the shipper; whether it will drive off thieves is another story. One study found that security cameras had a “modest but significant effect” on crime rates, leading to a roughly 13% decrease. But there’s not a lot of data from published studies that suggest doorbell cameras deter porch pirates.

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Some less conventional solutions have found their way onto the market as well.

Parcel Vault sells a kit that can put a package door in your wall so packages can be dropped inside your home (it also sells full-size doors with built-in package doors). And Package Guard sells a Frisbee-sized, internet-connected device that you place on your porch to receive packages; it sends you an alert when deliveries are placed on it, and it emits a loud alarm if they are removed without your authorization.

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Startup Varda Space Industries snags former Mattel plant in El Segundo

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Startup Varda Space Industries snags former Mattel plant in El Segundo

In an expansion of its business of processing pharmaceuticals in Earth’s orbit, Varda Space Industries is renting a large El Segundo plant where toy manufacturer Mattel used to design Hot Wheels and Barbie dolls.

The plant in El Segundo’s aerospace corridor will be an extension of Varda Space Industries’ headquarters in a much smaller building on nearby Aviation Boulevard.

Varda will occupy a 205,443-square-foot industrial and office campus at 2031 E. Mariposa Ave., which will give it additional capacity to manufacture spacecraft at scale, the company said.

Originally built in the 1940s as an aircraft facility, the complex has a history as part of aerospace and defense industries that have long shaped the South Bay and is near a host of major defense and space contractors. It is also close to Los Angeles Air Force Base, headquarters to the Space Systems Command.

Workers test AstroForge’s Odin asteroid probe, which was lost in space after launch this year.

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(Varda Space Industries)

Varda is one of a new generation of aerospace startups that have flourished in Southern California and the South Bay over the last several years, particularly in El Segundo, often with ties to SpaceX.

Elon Musk’s company, founded in 2002 in El Segundo, has revolutionized the industry with reusable rockets that have radically lowered the cost of lifting payloads into space. Though it has moved its headquarters to Texas, SpaceX retains large-scale operations in Hawthorne.

Varda co-founder and Chief Executive Will Bruey is a former SpaceX avionics engineer, and the company’s spacecraft are launched on SpaceX’s workhorse Falcon 9 rockets from Vandenberg Space Force Base in Santa Barbara County.

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Varda makes automated labs that look like cylindrical desktop speakers, which it sends into orbit in capsules and satellite platforms it also builds. There, in microgravity, the miniature labs grow molecular crystals that are purer than those produced in Earth’s gravity for use in pharmaceuticals.

It has contracts with drug companies and also the military, which tests technology at hypersonic speeds as the capsules return to Earth.

Its fifth capsule was launched in November and returned to Earth in late January; its next mission is set in the coming weeks. Varda has more than 10 missions scheduled on Falcon 9s through 2028.

For the last several decades, the Mariposa Avenue property served as the research and development center for Mattel Toys. El Segundo has also long been a center for the toy industry as companies like to set up shop in the shadow of Mattel.

The Mattel facility “has always been an exceptional property with a legacy tied to aerospace innovation, and leasing to Varda Space Industries feels like a natural continuation of that story,” said Michael Woods, a partner at GPI Cos., which owns the property.

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“We are proud to support a company that is genuinely pushing the boundaries of what’s possible, and are excited to watch Varda grow and thrive here in El Segundo,” Woods said.

As one of the country’s most active hubs of aerospace and defense innovation, El Segundo has seen its industrial property vacancy fall to 3.4% on demand from space companies, government contractors and technology startups, real estate brokerage CBRE said.

Successful startups often have to leave the neighborhood when they want to expand, real estate broker Bob Haley of CBRE said. The 9-acre Mattel facility was big enough to keep Varda in the city.

Last year, Varda subleased about 55,000 square feet of lab space from alternative protein company Beyond Meat at 888 Douglas St. in El Segundo, which it started moving into in June.

Varda will get the keys to its new building in December and spend four to eight months building production and assembly facilities as it ramps up operations. By the end of next year, it expects to have constructed 10 more spacecraft.

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In the future, Varda could consolidate offices there, given its size. Currently, though, the plan is to retain all properties, creating a campus of three buildings within a mile of one another that are served by the company’s transportation services, Chief Operating Officer Jonathan Barr said.

“We already have Varda-branded shuttles running up and down Aviation Boulevard,” he said.

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How Iran War Is Threatening Global Oil and Gas Supplies

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How Iran War Is Threatening Global Oil and Gas Supplies

Ships near the Strait of Hormuz before and after attacks began

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Note: Times shown are in Iran Standard Time. Some ships in the region transmit false positions and others sometimes stop broadcasting their locations, and may not be reflected in the animation. Ships with sparse location data are shown in a lighter shade. Source: Kpler and Spire.

Every day, around 80 oil and gas tankers typically pass through the Strait of Hormuz, the narrow waterway off Iran’s southern coast that carries a fifth of the world’s oil and a significant amount of natural gas.

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On Monday, just two oil and gas tankers appear to have crossed the strait, according to a New York Times analysis of shipping activity from Kpler, an industry data firm. Since then, one tanker passed through.

“It’s a de facto closure,” said Dan Pickering, chief investment officer of Pickering Energy Partners, a Houston financial services firm. “You’ve got a significant number of vessels on either side of the strait but no one is willing to go through.”

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Tankers have been staying away from Hormuz since the U.S.-Israeli attacks on Iran that began on Saturday. A prolonged conflict could ripple broadly across the global economy, threatening the energy supplies of countries halfway around the world and stoking inflation.

International oil prices have climbed 12 percent since the fighting began, trading Tuesday around $81 a barrel, and natural gas prices have surged in Europe and in Asia.

A senior Iranian military official threatened on Monday to “set on fire” any ships traveling through the Strait of Hormuz. Vessels in the region have already come under attack. Several oil and gas facilities have also been struck or affected by nearby shelling, though the damage did not initially appear to be catastrophic.

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Where ships and energy facilities have been damaged

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Note: Damage as of 2 p.m. Eastern time Tuesday. Source: Kpler, Kuwait National Petroleum Company, Saudi Arabian Ministry of Energy, Planet Labs, QatarEnergy, United Kingdom Maritime Trade Operations and Vanguard Tech.

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A fire broke out Tuesday at a major energy hub in Fujairah, United Arab Emirates, from the falling debris of a downed drone, the authorities said. On Monday, Qatar halted production of liquefied natural gas, or fuel that has been cooled so that it can be transported on ships, after attacks on its facilities.

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Facilities at Ras Tanura oil refinery in Saudi Arabia were on fire on Monday after two Iranian drones were intercepted, according to Saudi Arabia’s Ministry of Energy, causing fragments to fall. Vantor

The sharp reduction in tanker traffic is reducing the supply of oil and gas to world markets, pushing up prices for both commodities. And the longer that ships stay away from the Strait of Hormuz, the less oil and gas get out to the world, which could raise prices even more.

Shipping companies have paused their tankers to protect their crew and cargo, and because insurance companies are charging significantly more to cover vessels in the conflict area.

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On Tuesday, President Trump said that “if necessary,” the U.S. Navy would begin escorting tankers through the strait. He also said a U.S. government agency would begin offering “political risk insurance” to shipping lines in the area.

In addition to tankers, other large vessels regularly go through the strait, including car carriers and container ships. In normal conditions, nearly 160 make the trip each day.

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Some ships in the region turn off the devices that broadcast their positions, while others transmit false locations — making it hard to give a full picture of the traffic in the strait.

The Shiva is a small oil tanker that has repeatedly faked its location, according to TankerTrackers.com, which tracks global oil shipments. It is suspected of carrying sanctioned Iranian oil, according to Kpler. The Shiva was one of the two tankers that crossed the strait on Monday.

The oil and gas that typically move through the strait come from big producing countries like Saudi Arabia, Iraq, Iran and United Arab Emirates, and are exported around the world.

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Where tankers moving through the Strait have traveled

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Note: Tanker paths are since Jan. 1 and include all tankers and gas carriers. Source: Kpler and Spire.

In 2024, more than 80 percent of the oil and gas transported through the Strait of Hormuz went to Asia. China, India, Japan and South Korea were the top importers, according to the U.S. Energy Information Administration.

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Countries have energy stockpiles that could last them into the coming months, but a continued shutdown of the strait could damage their economies.

Several big disruptions have roiled supply chains in recent years, but the tanker standstill in the Strait of Hormuz could have an outsize impact.

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Paramount credit downgraded to ‘junk’ status over debt worries

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Paramount credit downgraded to ‘junk’ status over debt worries

Paramount Skydance’s jubilation over its come-from-behind victory to claim Warner Bros. Discovery has entered a new phase:

Call it the deal-debt hangover.

Two major ratings agencies have raised concerns about Paramount’s credit because of the enormous debt the David Ellison-led company will have to shoulder — at least $79 billion — once it absorbs the larger Warner Bros. Discovery, bringing CNN, HBO, TBS and Cartoon Network into the Paramount fold.

Fitch Ratings said Monday that it placed Paramount on its “negative” ratings watch, and downgraded its credit to BB+ from BBB-, which puts the company’s credit into “junk” territory. Fitch said it took action due to “uncertainty” surrounding Paramount’s $110-billion deal for Warner Bros. Discovery, which the boards of both companies approved on Friday.

S&P Global Ratings took similar action.

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To finance the Warner takeover, Ellison’s billionaire father, Larry Ellison, has agreed to guarantee the $45.7 billion in equity needed. Bank of America, Citibank and Apollo Global have agreed to provide Paramount with more than $54 billion in debt financing.

“Potential credit risks include the prospective debt-funded structure, Fitch’s expectation of materially elevated leverage and limited visibility on post-transaction financial policy and capital structure,” Fitch said.

Late last week, Paramount sent $2.8 billion to Netflix as a “termination fee” to officially end the streaming giant’s pursuit of Warner Bros. That payment paved the way for Warner and Paramount’s board to enter into the new merger agreement.

Paramount hopes the merger will be wrapped up by the end of September. It needs the approval of Warner Bros. Discovery shareholders and regulators, including the European Union.

Paramount executives acknowledged this week the new company would emerge with $79 billion in debt — a considerably higher total than what Warner Bros. Discovery had following its spinoff from AT&T. That 2022 transaction left Warner Bros. Discovery with nearly $55 billion of debt, a burden that led to endless waves of cost-cutting, including thousands of layoffs and dozens of canceled projects.

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Warner still has $33.5 billion in debt, a lingering legacy that will be passed on to Paramount.

Paramount plans to restructure about $15 billion in Warner Bros. Discovery’s existing debt.

Paramount CEO David Ellison at a 2024 movie premiere for a Netflix show.

(Evan Agostini / Invision / AP)

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Paramount told Wall Street it would find more than $6 billion in cost cuts or “synergies” within three years — a number that has weighed heavily on entertainment industry workers, particularly in Los Angeles.

Hollywood already is reeling from previous mergers in addition to a sharp pullback in film and television production locally as filmmakers chase tax credits offered overseas and in other states, including New York and New Jersey.

Some entertainment executives, including Netflix Co-Chief Executive Ted Sarandos, have speculated that Paramount will need to find more than $10 billion in cost cuts to make the math work. More recently, Sarandos went higher, telling Bloomberg News that Paramount may need $16 billion in cuts.

Cognizant of widespread fears about additional layoffs, Paramount Chief Operating Officer Andrew Gordon took steps this week to try to tamp down such concerns.

Gordon is a former Goldman Sachs banker and a former executive with RedBird Capital Partners, an investor in Paramount and the proposed Warner Bros. deal. He joined Paramount last August as part of the Ellison takeover.

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During a conference call Monday with analysts, Gordon said Paramount would look beyond the workforce for cuts because the company wants to maintain its film and TV production levels.

Paramount plans to look for cost savings by consolidating the “technology stacks and cloud providers” for its streaming services, including Paramount+ and HBO Max, Gordon said. The company also would search for reductions in corporate overhead, marketing expenses, procurement, business services and “optimizing the combined real estate footprint.”

It’s unclear whether Paramount would sell the historic Melrose Avenue lot or simply centralize the sprawling operations onto the Warner Bros. and Paramount lots in Burbank and Hollywood.

Workers are scattered throughout the region.

HBO, owned by Warner Bros. Discovery, maintains its West Coast headquarters in Culver City; CBS television stations operate from CBS’ former lot off Radford Avenue in Studio City; and CBS Entertainment and Paramount cable channels executive teams are located in a high-rise off Gower Street and Sunset Boulevard, blocks from the Paramount movie studio lot.

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“The combination of PSKY and WBD could create a materially stronger business than either individual entity,” Standard & Poor’s said in its note to investors. “However, this transaction presents unique challenges because it would involve the combination of three companies, with the smallest, Skydance, being the controlling entity.”

David Ellison’s production firm, Skydance Media, was the entity that bought Paramount, creating Paramount Skydance.

Ellison has not announced what the combined company will be called.

Paramount shares closed down more than 6% Tuesday to $12.45.

Warner Bros. Discovery fell 1% to $28.20. Netflix added less than 1% to close at $97.70.

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