Cargo Theft Surge Worries Shippers and Truckers

Cargo theft has sharply risen by 33% in the second quarter of 2024, creating heightened concerns among shippers and trucking providers. A recent report by the Transportation Intermediaries Association (TIA) underscores the significant challenges the industry is facing in combating this growing issue. According to Anne Reinke, TIA’s president and CEO, the lack of government and law enforcement support in addressing cargo theft has left the industry vulnerable. The impact of fraud extends beyond businesses, affecting consumers and the broader economy, with TIA estimating the cost of fraud at millions of dollars.

Truckload freight remains the top target for thieves, with 98% of TIA members identifying it as the most vulnerable transport mode. On average, the gross cost of fraud reported by TIA members is around $402,340, with individual thefts averaging $40,760 per load. Certain states, including California, Texas, Illinois, Georgia, and Florida, have emerged as hotspots for cargo theft, with stolen commodities often consisting of electronics, solar panels, and household goods. The increasing sophistication of theft tactics, such as criminal manipulation of motor carrier numbers, further complicates the fight against cargo theft.

To combat the growing threat, experts recommend enhanced vetting processes for freight brokers, which should include more rigorous background checks and continuous updates to carrier information. Establishing improved communication channels between shippers and brokers can also help minimize information gaps that thieves exploit. Additionally, prioritizing detailed checks and verifications, despite the industry’s fast pace, can go a long way in preventing thefts and safeguarding the supply chain.

Source: Inbound Logistics