Cargo theft is up. Recent data indicates theft incidents have jumped 20 percent in the transportation industry across 2022. By the end of the year, thefts tallied a total loss value of $223 million.
Cargo theft prevention and recovery company, CargoNet, reported supply chain risk events increased 15 percent year-over-year to 1,778 across the U.S. and Canada. Events that involved the theft of cargo increased by 20 percent.
CargoNet also notes the largest jump in thefts came in the fourth quarter.
Thefts have been more strategic and fraudulent
The uptick does not just lead any transport professional to sweat bullets and doublecheck padlocks. Many are conscience too that their operations are at risk of being thwarted by sophisticated criminal tactics.
Because, that’s the thing. Last year’s jump in theft incidents was not exclusively at the hands of run-of-mill culprits who took advantage of unattended cargo at truck stops, lots, or drop yards. A good deal of thefts were more strategic than this and involved cunning displays of fraud.
“It’s a generational change…We will still see trailers stolen from the side of the road, but the fraud is really what drove our numbers up,” Vice President of Operations at CargoNet, Keith Lewis, told Transport Topics.
Lewis went on to point out a sobering development. In 2021, the company reported 16 fraudulent thefts. In 2022, he notes that this number was around 116.
Criminals or carriers?
So, how do these cargo con artists with their dastardly guile pull off a successful theft?
Well, just like Brad Pitt and George Clooney robbing the Bellagio, they can be convincing enough to simply swindle transport pros to give them their cargo.
The brunt of this is done through fictitious pick-ups and identity thefts. Typically, criminals will disguise themselves as a trusted carrier and place bids on load boards.
However, the tricks can be even more advanced.
Insiders began detecting more incidents of criminals calling up logistics intermediaries, like freight brokers, posing as a legitimate carrier with available capacity. If they are able to squeak by vetting processes, the criminals will then get to work and not just for a one-time hit.
Once they’ve infiltrated an operation, they will latch on like a parasite bleeding out any cargo when the opportunity arises. Before the victim is even aware of the malfeasance, multiple loads are likely to have been already hit.
While cargo theft is not completely preventable, there’s a lot that can be done to mitigate it from happening. Please refer to our previous blog, Incidents of Cargo Theft Have Increased: How Trucking Carriers and Drivers Can Prevent It, for a closer look.
Final Thoughts
On a positive note, cargo con artists can often be in a pickle once they make it off with their stolen freight. They have to coordinate a quick sequence of events after a theft including moving the cargo, storing all of it somewhere, and ultimately finding a buyer.
If a foolproof post-theft plan is not in place, the criminals are left scrambling while in wrongful possession of cargo. This makes their sophisticated operation particularly vulnerable to being exposed to law enforcement.
We guess even criminals are susceptible to supply chain bottlenecks.
A few other nuggets of information CargoNet noted from its 2022 report were warehouses and distribution centers being the top targeted locations and household goods being the top targeted commodity type.
The top three targeted states were California, Texas, and Florida. These states alone accounted for 46 percent of all cargo theft in the U.S.
Please contact us if you have any questions regarding cargo theft and how it may impact your shipments. In addition, stay up to date with weekly headlines from both trucking and rail via our Road Map newsletter.
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