Today’s cargo thieves are finding more ways to leverage technology to commit cargo theft, often from a computer located thousands of miles away.
While the frequency and sophistication of these incidents are on the rise, a new report highlighting the exorbitant toll of cargo theft also shows there are basic steps trucking fleets can take to reduce their overall vulnerabilities.
The research from the American Transportation Research Institute (ATRI) found the annualized cost of cargo theft to the industry is as high as $6.6 billion, or more than $18 million per day.
“Cargo theft across the entire supply chain presents a widespread challenge, impacting every mode and stakeholder in freight — from raw material procurement to final delivery to consumers,” ATRI said.
Carriers average more than $520,000 in direct annual losses due to theft. That figure is $1.84 million annually for logistics service providers. The total financial impact of cargo theft goes well beyond the lost merchandise, however. ATRI estimates indirect costs of theft, including operational disruptions, damaged customer relationships, and potential liabilities, are as much as six times the direct costs.
The survey of carriers and logistics providers focused on data from 2023. ATRI’s complete report, including information on emerging threats like double brokering and the impact of cargo theft on insurance, can be accessed here.
A need to improve security, best practices
Nearly 40% of carriers said that “pilferage” was the most common type of theft they were experiencing. Pilferage is when only part of a load is stolen, generally when a trailer is unattended.
The survey also found carriers are most likely to see theft from their own terminal (24.3%), an overnight parking location (19.4%) or a truck stop/rest stop. ATRI said the results illustrate the need to better secure facilities and ensure only vetted personnel are granted access.
There should be an emphasis on security best practices for drivers, such as removing keys from unattended vehicles and using team drivers for high-value shipments. Guidelines for parking and trailer drops should also be developed, if not already in place.
Carriers also reported falling victim to straight theft, where an entire load is stolen from a location (31.5% of incidents), and strategic thefts, such as double brokering or load board fraud (20.3%).
Cargo thieves tend to want items that can be resold easily and without detection. That’s why food was the most commonly stolen product in ATRI’s survey, followed by electronics, automotive parts/vehicles, and beverages. Data also shows that the majority of cargo stolen from motor carriers is never seen again and is rarely recovered in full.
The majority of cargo theft incidents (79%) did not involve equipment being stolen. However, there were instances where only the trailer (17.5%) or the tractor (0.5%) was stolen, as well as cases where both were stolen (3%).
With higher freight activity comes more theft
Based on available data from 2023, 41% of total cargo thefts in the United States were reported to have occurred in California. The ports of Long Beach and Los Angeles, and logistics hubs like the Inland Empire, make it a leading target for cargo thieves.
Another hot spot for cargo thieves is Texas, with its location along the U.S.-Mexico border and a sprawling highway network. Illinois and Tennessee, which also have busy interstate corridors and heavy freight activity, are among the other states with higher reported incidents of cargo theft.
As theft grows, more U.S. states take action
The report also praised California and Texas for each stiffening cargo theft penalties. Last year, California passed a law directing the state’s Highway Patrol to work with railroad police to target cargo theft. It also listed cargo theft as a property crime for consideration by the regional property crimes task force.
Meanwhile, in Texas, laws pertaining to cargo theft were codified in 2015 and amended in 2017, making it a felony if the value of the stolen cargo exceeds $1,500, with steeper penalties as the value increases.
Georgia is another state that has taken aggressive steps to combat cargo theft. It began by establishing cargo theft as its own criminal offense category and developing graduated sentences based on the value of the stolen goods. That includes up to 30 years in prison for a cargo theft conviction of more than $1 million.
What else can be done?
Designating cargo theft as a distinct crime and imposing graduated sentences, as Georgia has done, are important legislative steps that states can take to better tackle the cargo theft problem.
Survey respondents said there is currently inadequate data-sharing, and recommended a nationwide system for collecting accurate, timely cargo theft information from all levels of law enforcement and the private sector.
“It was suggested throughout the research that a federal-level centralized cargo theft reporting agency or program is essential,” ATRI said, noting bipartisan legislation has been introduced that would help better coordinate cargo theft information across law enforcement.
