Earlier this year, we had a large shipment stolen when it was picked up from our warehouse.
We had a container arrive from overseas, the shipment was picked up and brought to our warehouse to be transloaded into a 53-foot trailer for delivery to our customer’s client across the country. Everything went smoothly until the truck broke down, was supposed to be getting repaired, and the driver stopped communicating and disappeared. We just lost a half million-dollar order of high-end garments. Our customer was highly upset. We did our best to explain the situation to them and have been very transparent. We filed the police report and filed the claim with the insurance company, but the cargo was never recovered.
According to a new report by Overhaul, a supply chain risk management company, cargo theft has increased 49% in the first half of 2024. The average loss per incident has increased 83% from the previous time last year. This trend shows the growing sophistication and ambition of cargo thieves, who are looking for and targeting high-value shipments.
The majority of heists are carried out by organized professionals and not individuals.
They generally do not want any violence as they do not want to draw attention to themselves. With a little time, intelligence and preparation, a criminal can locate a load of goods of a particular commodity and drive off with a truckload easily. Once a driver pulls into a truck stop, and gets out, his truck can be targeted and stolen.
California is the center of the crisis, accounting for 45% of all reported thefts followed by Texas at 14%. The most troubling area is the Southern California Red Zone which is the first 200 miles of travel for shipments departing this area. It accounts for 36% of all cargo thefts in the country. This region experiences more cargo theft than the states of Texas, Tennessee, Illinois, Georgia and Arizona combined. Electronics were the most targeted product type in the USA representing 23% of all thefts.
In 2023, there were 1,183 reports of cargo theft totaling almost $700 million in cargo which is 67% higher than cargo theft from 2022. Freight stolen was mainly due to the increase in product demand from the pandemic and companies shipping in original factory packaging. Anything that was easy to sell was targeted. Items like pharmaceuticals, razor blades and batteries were easy to move. Electronics were the most stolen product type but the largest increase in cargo theft was food items and home and garden supplies.
Transportation providers are reporting various methods used to steal freight, and understanding the tactics of cargo thieves can help you prevent it from happening.
1. Straight Theft
Straight theft is when cargo is stolen straight from a carrier at a truck stop or somewhere along the route. The truck and trailer might be unattended for a short amount of time but for professional thieves, it doesn’t take long to steal the truck, unload the cargo and disappear.
2. Strategic Theft
Strategic theft is most commonly occurs as double-brokering. This is when a criminal transfers a load from one freight broker to another, without proper authorization.
3. Cyber Attacks
Cyber attacks happen when carrier information is hacked, and drivers and warehouse workers’ personal information is stolen resulting in identity theft. This information is then used to create false ID’s and allow criminals access to freight storage areas.
Why is cargo theft so popular?
Freight’s high volume and ease of transport over land, sea and air make it a crime of opportunity. With so much cargo moving, criminals use companies need for speed which sometimes takes priority over doing proper due diligence. Consumers goods, seasonal merchandise or items in high demand, are targeted specifically by thieves. Stolen merchandise can be quickly unloaded and resold without much notice.
There are ways to prevent stolen freight. Taking a few extra steps can help prevent cargo theft.
1. Verify Credentials
For Freight brokers and Carriers, verify the contact information matches the Federal Motor Carrier Safety Administration’s (FMSCA) and US Department of Transportation (USDOT) websites. Verify that contact details including email addresses are correct.
2. Establish security guidelines and clear communication.
Carriers and brokers should add security guidelines to all contacts to protect themselves from vulnerability and liability. High value freight should be kept in secure, well-lit locations and should not be left unattended for extended periods of time. It should be secured with strong trailer doors and locks.
3. Check carrier ratings and reputation
Use online monitoring solutions to select quality carriers. Use referral networks when selecting the right carrier to work with. Make sure phone numbers are valid. Virtual phone numbers with no physical address associated with them have an elevated risk of fraud.
4. Use digital security
To track loads in real time with GPS monitors.
5. Eliminate stops within 300 miles of origin.
The initial starting point for shipments is popular with thieves stealing your shipment. Keeping drivers on the road for the first part of the transit helps eliminate this risk.
6. Report theft
Cargo theft continues to be highly underreported, enabling the criminals to continue what they are doing. Reporting any crime or suspicious activity is key to stopping illegal activity.
What is law enforcement doing?
Since the start of the pandemic in 2020, the FBI has seen an uptick in cargo theft cases. To combat this increase in illegal activity, the FBI has seven Major Theft Task Forces found throughout the USA that specialize in tracking the following crimes: Traditional Theft of a Tractor Trailer, identity theft, fictitious pickups, hijacking, pilferage, and warehouse burglaries. The FBI has been taking measures to combat cargo theft by opening strategic cases, training agents to identify and mitigate cargo theft cases and working with local law enforcement and industry leaders to gather intelligence about the rapid changes taking place in the transportation industry.
