Cargo theft is “the criminal taking of any cargo including, but not limited to, goods, chattels, money, or baggage that constitutes, in whole or in part, a commercial shipment of freight moving in commerce, from any pipeline system, railroad car, motortruck, or other vehicle, or from any tank or storage facility, station house, platform, or depot, or from any vessel or wharf, or from any aircraft, air terminal, airport, aircraft terminal or air navigation facility, or from any intermodal container, intermodal chassis, trailer, container freight station, warehouse, freight distribution facility, or freight consolidation facility.”
Cargo theft comes in many shapes and sizes. According to Travelers Insurance, there are five main cargo theft tactics to watch out for. The first is straight cargo theft, where cargo is physically stolen from a location. Second is strategic cargo theft, which uses deceptive means to commit theft, including the use of fraud and deceptive information to trick brokers into giving up a load. Third is the use of technology, such as GPS blockers to hide the location of a stolen container or truck. Fourth is the use of cyber-attacks, such as phishing scams and malware used to access sensitive data. And fifth is pilferage, which is the theft of small quantities of items that are often overlooked until a trailer or container is unloaded.
Over the last few years, there has been more emphasis on the second tactic: strategic cargo theft. There were 582 supply chain events reported across the United States and Canada in the second quarter of 2023, a 57 percent increase when compared to the second quarter of 2022, according to the latest CargoNet report. In fact, much of the increase is due to ongoing shipment misdirection attacks, a kind of strategic cargo theft in which actors use stolen motor carrier and logistics broker identities to obtain freight and misdirect it from the intended receiver so they could steal it. The strategic theft category is actually up 600 percent from November to March.
The trucking industry as a whole is doing what it can to combat cargo theft. Most of this is done by educating shippers and carriers on the risk of cargo theft, and what to do if and when it happens. However, as technology continues to improve, and cargo thieves become smarter and bolder, there is only so much that can be done. To limit the impact of cargo theft, the NICB recommends a layered approach:
While these recommendations will not eradicate cargo theft, they can certainly help shippers and carriers be better prepared. As we head into the holiday season, organized cargo theft will likely be on the rise, especially strategic cargo theft. Preparation will be key to reducing the amount of goods that are stolen or misdirected, and hopefully move things in the right direction, away from a billion dollar industry.
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