Rising threats in the freight industry: surge in cargo thefts

CargoNet's analysis documented an average value of stolen shipments of $281,757

In a recent report from CargoNet, it is shown that during the first quarter of 2024, cargo theft incidents have experienced an alarming 46% increase compared to the previous year. This rise also marks a concerning 10% increase over the fourth quarter of last year.

CargoNet’s analysis documented an average value of stolen shipments of $281,757 resulting in 925 incidents during this period. The total declared value reached $76 million; however, the company estimates that the total value of stolen goods could be as high as $154.6 million.

Cargo theft strategies

Keith Lewis, Vice President of Operations at CargoNet, pointed out that this increase in cargo theft is affecting a wide range of goods, from food to high-end electronics. Dean Croke, Principal Analyst at DAT Freight & Analytics, suggests that difficult times may be exacerbating this trend, driven by desperation to obtain additional income.

One of the most common methods of theft is fraud, which involves the use of deceptive means to gain access to the cargo. Additionally, there has been an increase in counterfeiting, where, despite having authentic seals, partial or total theft of the cargo occurs, explains Lewis. Although current supply chain strategies have proven effective, they have also provided an advantage to thieves. The speed at which goods move through the supply chain can reduce vigilance and facilitate theft.

Another factor to consider, according to Croke, is the inexperience of young and novice drivers who have recently joined the industry following the employee reduction seen over the past year and early this year. This, Croke mentions, is because they do not know all the conflict points to avoid, creating an opportunity for cargo theft. It is essential to provide them with the knowledge to detect possible theft attempts and secure the cargo.

Areas such as Southern California, Dallas-Fort Worth, and Atlanta stand out as high-crime areas, with California, Texas, and Illinois highlighted as the states with the highest number of cargo thefts due to their manufacturing and commercial activity.

Significant challenge for the freight transport industry

The theft of unattended loaded trailers remains a persistent problem. With holidays like Memorial Day approaching, the risk of theft increases, as is common during vacation periods. During these times, reduced personnel and increased shipping volume can create ideal conditions for cargo theft, warns CargoNet. Lewis assures that these trends will continue in the coming months.

Cargo theft continues to pose a considerable challenge for the freight transport and supply chain industry, demanding enhanced attention and security measures to mitigate its effects. It is crucial to implement necessary actions to protect both the cargo and the drivers.