Combatting Cargo Theft: The Growing Threat to the Freight Trucking Industry
As the holiday season approaches, experts in the freight trucking industry are warning of an increase in cargo theft as more products are transported on the road. According to CargoNet's July Q2 report, there has been a 13% rise in cargo theft compared to the same period in 2024.
Traditional cargo theft methods are still prevalent, with one San Antonio-based freight business, Double Diamond Transport and Tanager Logistics, sharing their experience of thieves cutting seals and stealing cargo. The landscape of cargo theft has evolved, with online theft surging by 1,500% over the past four years, as reported by Trucking.org.
Keith Lewis, CargoNet's Vice President of Operations, highlighted the shift towards online theft post-2020, as criminals realized they could operate globally and manipulate freight remotely. Fraudsters are now deeply embedded in various aspects of the trucking industry, resorting to identity theft and fraudulent logistics operations to steal cargo.
The rise in cargo theft has had significant repercussions for businesses like Double Diamond Transport and Tanager Logistics, leading to increased insurance rates and damage to their reputation. The American Trucking Associations (ATA) CEO, Chris Spear, emphasized the tech-driven nature of modern cargo theft, orchestrated by transnational organizations primarily based in Eastern Europe and Russia.
Once stolen, the stolen freight is often concealed in containers and transported to destinations like the LA area before being shipped to other countries. Cargo theft incidents may go unnoticed for extended periods, with some companies discovering theft weeks, months, or even a year later due to the lack of mandatory reporting.
California, Texas, and Illinois are the top three states for cargo theft, accounting for 53% of all incidents nationwide. Food and beverages, as well as household goods, are the most targeted items. The ATA estimates that cargo theft amounts to a $19 million daily loss for the trucking industry.
To combat organized retail crime and cargo theft, the freight trucking industry is advocating for the passage of the Combating Organized Retail Crime Act (CORCA). This legislation aims to establish a national cargo theft database and enhance collaboration between law enforcement and industry stakeholders to combat criminal rings.
Industry leaders, including Adam Blanchard of Double Diamond Transport and Tanager Logistics, have testified before Congress, urging for federal legislation to address cargo theft effectively. The lack of a dedicated law enforcement agency focusing on cargo theft poses a significant challenge, leading to the continuous escalation of theft incidents.
The repercussions of cargo theft extend beyond the industry, impacting consumers through potential price increases and product shortages. As stolen products fail to reach shelves, the cost of goods rises, affecting the prices paid by consumers for essential items. The need for legislative action and collaborative efforts to combat cargo theft is crucial to safeguard the integrity of the supply chain and protect businesses and consumers alike.