Cargo theft has reached unprecedented levels in recent years, posing a significant threat to global supply chains. A recent white paper by Becker Logistics finds that thieves exploit a range of vulnerabilities in logistics operations, especially when goods are left unattended or security measures are weak.
According to CargoNet, the number of cargo theft incidents surged by 46% in the first quarter of 2024 alone, with a declared total value of $76 million. Hot spots for these crimes include major logistics hubs like California, Texas and Illinois, which accounted for 61% of all reported incidents in 2023.
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Industries such as food and beverage, electronics, and pharmaceuticals are particularly vulnerable due to the high resale value and ease of movement of these goods.
The report also found that advances in FreightTech have created new opportunities for theft. Sophisticated criminal syndicates are increasingly involved in cargo theft, using tactics such as identity theft and forgery to impersonate legitimate companies. Insider involvement, such as employees with access to sensitive information, also plays a role.
Theft by location and product
The Becker Logistics report also examined a Swedish study on cargo theft risk.
The 2013-2016 research showed that risk varies seasonally and across different modes and logistics locations. This suggests that different locations require varying security levels. The study extends previous research by including product types as a factor in theft risk, recognizing that different products have different values and appeal to thieves.
While the study found no direct interaction effects between product type and location on cargo theft risk, it did reveal substantial interaction effects on the probability of theft. For example, for most product types, risk probability increased substantially in nonsecured parking locations while secured parking locations experienced less than a 5% of theft across all product types.
Consequences beyond lost goods
The Becker Logistics study also found that consequences of cargo theft are far-reaching and can include delays and missed deadlines, inventory shortages, increased costs, and reputational harm.
When cargo is stolen, it can disrupt supply chains, leading to production delays, stockouts and lost sales. Replacing stolen goods, filing insurance claims and implementing additional security measures can significantly increase costs.
Moreover, cargo theft can damage a company’s reputation, leading to loss of customer trust and investor confidence, and to strained relationships with suppliers and partners. Hence these crimes are often not reported.
Business strategies to combat theft
Becker Logistics offered fellow supply chain participants ideas to avoid theft. These strategies include leveraging technology, partnerships and collaboration, strengthening legal frameworks, and investing in employee training.
For those with assets, including both trucks and yards, teams should invest in GPS tracking and telematics systems to monitor shipments coming in and out of locations. Trailers owners can also invest in smart locks and electronic seals for when traveling or staying in less-secured locations. Most importantly, cameras, whether in the truck or the yard, allow owners to leverage computer vision to detect suspicious behavior.
Related: Truckstop on fraud: ‘It’s about time we protect each other’
Third-party participants should consider those same technologies with their facility partners as well. Be sure that storage facilities are operating gated yards with cameras to lower customers’ cargo theft risk. These groups, along with FreightTech providers, should also be sharing data on incident reports and reaching out to local law enforcement when cargo theft occurs.
Lastly, comprehensive training programs can equip drivers, warehouse staff and 3PLs to recognize potential threats, respond to suspicious activity and follow security protocols. Including insider threat awareness training in those programs can help identify and prevent theft facilitated by employees with access to sensitive information as well.
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