Cargo theft has skyrocketed to historic highs in the United States. In 2024, those losses surged to almost $455 million, based on reported incidents data from Verisk CargoNet. The group documented 3,798 incidents of cargo theft, representing a record-breaking 26% surge from 2023. As that crisis quickly escalates, it is making states like California epicenters for fueled criminal enterprises. This wave has begun to cause serious alarm in communities, businesses, and law enforcement agencies.
Those numbers underscore a growing crisis in an industry with an alarming pipeline. California has emerged as the nation’s cargo theft leader in recent years. In another remarkable recent felony confession, Lululemon executives announced that they’d been robbed blind at the company’s distribution center in Ontario, California. Thieves walked away with more than a million dollars’ worth of goods! Meta had an incredible $500,000 deficit last year. In Texas thieves have made off with its Ray-Ban and Oculus glasses, delivering the financial body blow.
According to experts, it’s only bound to get worse, with Overhaul forecasting a 22% rise in cargo theft cases by 2025. The surge in these crimes has driven organizations to do more than simply react. One example DAT has a full-time illegal activity detection team that stops illegal attempts to book new freight about twelve times a day. Last year alone, DAT’s software stopped over 914,000 fraudulent attacks.
Jerry Jacobs, director of risk management for Prosponsive Logistics Cargo theft is in a crisis state today.
“There’s no deterrent for these guys,” – Jerry Jacobs.
He pointed out that criminals are encouraged by the risk they believe is nonexistent for them. Keith Lewis, the vice president of Verisk CargoNet, told NBC that he was alarmed by the spike in cargo theft. He said that everyone looks at it like “low risk and an extremely high reward.”
Aside from the bottom line losses for businesses, the intangible toll on supply chain overseers deepened. Birger Buesching heads the global supply chain for the consumer business of Philips’ personal health sector. He noted that fears of cargo theft have increased dramatically over the past few years.
“Two, three years ago, I didn’t have to worry about this,” – Birger Buesching.
“Robberies, especially of high-value cargo shipments, are becoming more and more commonplace.”
“But we do see an uptick in any kind of commercial shipments, bigger value shipments that are going out to our customers or traditional retail customers,” – Birger Buesching.
Increasing cargo theft is especially worrisome. A few reasons explain this trend, most notably how technology has empowered criminals to work more effectively. Scott Cornell, national transportation leader for Travelers Insurance, reiterated the challenge posed by the nature of stolen goods to the recovery process.
“It’s consumable. So, the evidence disappears,” – Scott Cornell.
This reality creates a window of opportunity for thieves to benefit from their brazen heists without fear of facing immediate consequences. Additionally, Jacobs noted that an increasing number of criminals run their operations from outside the U.S., using technology to stay out of reach.
“You’re hiding out in a foreign country, and all you need is a cell phone and a computer to conduct this type of fraud,” – Jerry Jacobs.
As businesses continue to deal with the increasing risks of cargo theft, many are finding ways to improve their security protocols. J.B. Hunt is taking these incidents into consideration as the company continues to improve the security of its systems, said Bradley Hicks. The company admits that there is an immediacy in the need to fix these vulnerabilities.
Unfortunately, our nation’s bad actors have taken to hitting the supply chain during COVID, as cargo theft is on the rise across all industries. Retailers are feeling the impact. Lululemon understood that retail crime, most notably cargo theft, continues to be a huge hurdle for the sector. We’re serious about using our size and scale to drive bold action against this scourge.
Katie Wild, vice president of marketing at Nolan, said taking proactive steps is key to protecting shipments.
“We take a proactive, data-driven approach, focusing on early detection and prevention to ensure the security of shipments,” – Katie Wild.
The growing professionalism of cargo theft networks has resulted in a troubling increase in cross-border crime, particularly from Colombia. Highway reported that most unauthorized access attempts originated from six countries: India, Mexico, Moldova, Pakistan, Serbia, and Uzbekistan. Overall, 9,829 carrier users from 75 countries tried to get onto DAT’s platform improperly. The global nature of these operations makes enforcement efforts more difficult and creates concern over jurisdictional challenges.
Transportation Intermediaries Association CEO Chris Burroughs offered his perspective on the changing nature of cargo theft.
“Retail crime, including cargo theft, is a serious industry-wide challenge, and we are taking decisive action to combat it,” – Chris Burroughs.
Industry stakeholders are acutely aware of the need for improved security measures and collaboration among various entities to address this issue effectively. It’s why so many companies have invested in advanced technological innovations and fast track training programs for their employees in response to growing threats. The challenge remains truly daunting.
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