Cargo theft bounced from “High” to “Extreme” on CargoNet’s Cargo Theft Threat Level indicator at the end of 2022. So far in 2023 it has stayed in the “High” or “Extreme” category. What’s driving the surge in cargo theft?
Holidays: The end of year holidays are traditionally a time cargo thieves strike. More freight tends to be moving and in-demand gifts are targeted. Trucks are often left unattended during the holiday season and warehouses/distribution centers are closed or running on shortened hours, allowing thieves additional time to steal or pilferage.
Scarcity and Cost Driving Illicit Market Demand: Many consumer items have become hard to get or their cost has risen substantially due to inflation. Cargo thieves target these types of items knowing there is a market for a quick sale after the theft has occurred. Currently we are seeing this happen to higher cost food items such as meat as well as electronics including computer graphics cards.
Fleets and Drivers Without a Plan: Benjamin Franklin’s quote: “By failing to plan, you are preparing to fail” is accurate in the security industry. Those without a layered security plan in place to prevent theft may find themselves scrambling after an event occurs. Plan ahead by making sure parking for trips is secured and layers of security are in place to protect the equipment and load.
Theft Activity at Major Intermodal Hubs: According to CargoNet’s 2022 Supply Chain Risk Trends Analysis, “California remained the top state for reported events in 2022 and theft in the state increased 41% year-over-year. Computer and green energy components were some of the most frequently stolen items of the year and California is a major logistics hub for these items. Theft in Georgia increased by 34% year-over-year, due in part to organized crime groups that took advantage of increased traffic to the Port of Savannah.”
Shrinkage in Cargo Theft Task Forces: Many states have reduced or shut down their task force focused on cargo theft. Those that have remained now have fewer resources leading to less manpower to investigate theft and organized crime groups.
Fictitious Cargo Pickups: Fictitious pickups are a highly specialized, internet-based form of cargo theft that requires skill in document forgery. The fraud occurs when a thief subcontracts the shipment to a legitimate motor carrier and then has the shipment misdirected to another address. According to CargoNet’s 2022 Supply Chain Risk Trends Analysis, “CargoNet recorded 96 more fictitious pickups in 2022 compared to the year prior, a 600% increase year-over-year.“
