Cargo theft has emerged as a frontrunning issue against safe operational practices in the transportation industry.
While the phenomenon of malicious thieves taking what isn’t theirs is a tale as old as freight transport itself, stakeholders are increasingly alarmed at how theft has evolved in recent years. Gone are the days of just run-of-the-mill culprits taking advantage of unattended cargo at truck stops or warehouses. The methodology of today’s cargo thieves has grown more sophisticated and organized. Orchestrators of major freight heists are more likely to type on keyboards than brandish crowbars.
U.S. shippers, carriers, and transportation intermediaries are now facing advanced threats from strategic and tech-savvy forces seeking to plunder their loads. The war of cargo theft has transitioned to a digital front. Stakeholders must combat these adversaries by deploying their own technology and strategies.
Cargo theft’s rampant rise, increased sophistication
Over the past year, instances of cargo theft have soared and failed to look back. In the 12 months ending last November, cargo theft prevention and recovery company CargoNet reported more than 600 strategic thefts in the U.S. Compare that with the company’s pre-2023 average of 58 reported thefts per year.
Such a dastardly ascent to this figure is unnerving to explain. Thefts have evolved into intricate displays of fraud, weaponizing today’s digital world.
“The digitization of the world makes gaining access to information so much easier,” Chris McLoughlin with third-party logistics provider Uber Freight told the Journal of Commerce. “The [cargo thieves] are taking advantage of that.”
According to CargoNet, thieves have fixated on an increasingly diverse pool of goods in 2023. The company noted popular targets were retail items, like footwear, clothing, and beauty products, and packaged beverages, like energy drinks. All-terrain vehicles, construction equipment, and solar panels were also noted.
These more strategic and fraudulent thefts are carried out in many forms. The most prevalent are double brokering and fictious pickups.
Double brokering occurs when cargo is transported without any visibility or permission from the cargo owner (shipper) and/or original freight broker. For example, a motor carrier may agree to haul a load for a broker willfully chosen by the shipper. The freight broker is under the impression that the carrier itself will transport the cargo, but in reality, the carrier instead re-brokers it with another, unknown, party.
This illicit practice undoubtedly sows confusion and miscommunication onto the shipper and original broker, perfect conditions for thieves to carry out their malfeasance. With zero visibility over the shipment’s whereabouts, the risks of losing cargo are very high.
The other common method used by thieves is the art of fictitious pickups. Also referred to as identity theft, criminals will disguise themselves as a trusted motor carrier and place bids on load boards, online exchanges where shippers award cargo to carriers. For supply chain professionals going through the motions of their day-to-day job, they may overlook the imposter and accidentally entrust their cargo to the criminal party.
Other instances of fictitious pickups can be more advanced, however. A criminal may call brokers or other intermediaries and pose as a legitimate carrier with available capacity. If they squeak by vetting processes, the thief will have successfully infiltrated the vendor pool of a transportation provider. From there, they may not just target one load, but several others. By the time the victim is even aware of the scam, the “carrier” could have already siphoned multiple loads.
Uber Freight’s McLoughlin noted that criminals thrive on miscommunication and look for opportunities in gaps left in document processing. For many stolen shipments, the act happens between purchase orders (what was ordered) and bills of lading (what was shipped). McLoughlin said: “[Cargo thieves] are taking advantage of delays in document processing…The primary thing is being transparent with your providers…sharing information and more transparent processes.”
Digital defenses against cargo theft
It’s clear that cargo theft can be hard to deter, however digital defenses can be implemented to mitigate these events from happening and, if they are suspected, detect them.
For documentation, electronic bills of lading can share accurate shipment information and, importantly, reduce delays in processing shipment data, the window of time criminals bank on.
Furthermore, tracking and tracing is paramount—especially in the case of double brokering. Carriers have benefited from installing tracking devices and sensors aboard containers and trailers. If they, or even one of their shipper-customers, notice that a load has veered off route or dropped at an incorrect location, they can respond accordingly and take necessary actions.
Final Thoughts
While it’s recommended that all stakeholders practice good judgement and consider implementing digital defenses to warrant cargo theft, the risks and subsequent needs for high-end safeguards can vary from industry to industry.
Even sales associates of visibility and safety platforms wouldn’t advise a mover of nuts and bolts to break the bank over a technology overhaul. However, for shippers and carriers responsible for transporting expensive commodities, like pharmaceuticals or computers, the investment is prudent when considering the larger target on their back.
Contact one of our team members if you have any questions regarding this topic or any others in domestic logistics.
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