Cargo thefts in the United States have jumped to record highs. This crisis not only cuts short the supply chain, it creates an existential concern for industry leaders. The Association of American Railroads reported a staggering 40% increase in train cargo thefts during 2024, with over 65,000 incidents recorded. That spike has contributed to cumulative reported losses totaling almost $455 million, based on data from Verisk CargoNet.
They had young children and the trend still was continuing to rise. Thefts are expected to rise 22% in just two years, according to experts. In just 2024 so far, Verisk CargoNet reported 3,798 thefts — a 26% increase over last year. In 2020, strategic theft represented only 8% of total cargo theft incidents. Today, it’s grown to a whopping one-third of these crashes.
Outrage and alarm have shaped the responses of industry stakeholders that have already taken steps to protect their networks from this rising threat. DAT, a logistics technology provider, employs a dedicated team that identifies attempts at illegal activity about a dozen times daily. The company’s innovative software prevented 914,674 fraud attempts last year.
TQL has spent an astonishing $4 million developing their technology, as well as hiring a cadre of specialized employees. TTPF cargo theft This investment will dramatically increase its ability to prevent cargo theft. For example, Highway, a logistics security company, has gone upstream to interdict would-be criminals before they can impact the supply chain.
In February, the California Highway Patrol’s Cargo Theft Interdiction Program executed a search warrant at a store located in Los Angeles’ fashion district, reflecting law enforcement’s commitment to addressing this issue. Adam Miller, CEO of TQL, reported a 400% increase in comments regarding cargo security. This positive trend is a strong indicator that the whole industry is waking up to the issue.
As the cargo theft ecosystem continues to change, everyone from industry members to law enforcement is worried about increasing threats. Birger Buesching, head of the supply chain for Philips’ personal health consumer business, noted, “Two, three years ago, I didn’t have to worry about this.” He witnessed a major increase in commercial shipments and harped on the need for increased awareness.
With the severity of retail crime, especially cargo theft, leading to such drastic measures, decisive actions have been taken within the industry. Lululemon announced that “retail crime, including cargo theft, is a serious industry-wide challenge,” and reiterated the steps they are taking to combat it among others.
Scott Cornell, national transportation leader for Travelers Insurance, pointed out the unique challenges posed by consumable goods: “It’s consumable. So, the evidence disappears.” He further elaborated that criminals have become adept at understanding what to steal and when to target shipments: “They know what to steal and when to steal it, and they’re really good at return on investment.”
Jerry Jacobs, director of risk management for Prosponsive Logistics, highlighted the lack of deterrents for criminals engaged in cargo theft: “There’s no deterrent for these guys.” He described the situation as if they “literally have a license to steal,” underscoring the ease with which thieves operate.
It’s about time lawmakers focused on this urgent priority. In April, U.S. Representative David Valadao (R-Calif.) joined a bipartisan group of lawmakers to introduce the Combating Organized Retail Crime Act. We appreciate this legislative effort to tackle organized retail crime from all angles and bring relief to affected industries.
Katie Wild, vice president of marketing at Nolan, emphasized the need for proactive measures in addressing cargo theft. “We take a proactive, data-driven approach, focusing on early detection and prevention to ensure the security of shipments.”
Cargo theft is an ever-growing crime, costing companies millions of dollars in lost cargo. Besides the human cost of these thefts, they pose significant inventory problems to retailers. Ellen Kapiloff, vice president of operations for North and Central America at Lacoste, underscored the real-world challenges caused by the fear of cargo theft. She described how this problem can create critical logistical barriers on retail floors.
With criminals becoming more advanced in their use of technology and tactics to perpetrate crime, it’s essential that vigilance is a priority, according to the experts. Keith Lewis, vice president of Verisk CargoNet, noted that stealing a million-dollar load can yield hundreds of thousands of dollars in profit with minimal risk involved: “Rob a million-dollar load, that’s going to give you hundreds of thousands of dollars in return. And there’s literally no risk.
Jordan Graft, CEO of Highway, likened the spread of cargo theft to a pervasive issue: “It’s like a virus.” As companies and authorities work together to combat these crimes, understanding the evolving nature of cargo theft remains crucial for securing the U.S. supply chain.