Cargo Theft Affects Supply Chain, Shippers Must Take Action

Cargo theft is a serious issue that affects the entire supply chain, causing significant financial losses for shippers and carriers. According to the article, cargo theft costs the US economy over $15 billion annually.

Shipping companies need to take proactive measures to protect their cargo from theft. This includes investing in secure containers and trailers, as well as implementing advanced tracking systems.

The most common targets of cargo thieves are high-value electronics and pharmaceuticals. These items are often stolen from trucks and warehouses, causing significant disruptions to the supply chain.

Shippers must take responsibility for securing their cargo and reporting any incidents of theft to the authorities.

For another approach, see: Avoid Package Theft

Cargo theft is a serious issue, but there are steps you can take to prevent it. J.B. Hunt has a dedicated team that deploys to assist law enforcement with investigations.

Having a robust security system in place is crucial. J.B. Hunt's 24/7 security operations center (SOC) monitors and responds to high-value loads in transit.

To prevent cargo theft, it's essential to have a strong cybersecurity system. J.B. Hunt's dedicated engineering and technology teams optimize cybersecurity to help prevent strategic cargo theft.

Using industry-leading technology and analytics can detect many types of carrier fraud and prevent cargo theft. J.B. Hunt's technology can even detect cargo theft before the load is ever picked up.

By taking proactive measures, you can minimize the risk of cargo theft. Ship with a reputable carrier like J.B. Hunt that has a proven track record of protecting customer freight.

Expand your knowledge: Package Theft

Cargo theft is a serious issue that affects many industries, and understanding the data and statistics surrounding it is crucial for mitigating risks and making informed decisions.

CargoNet's data consists of 144 specific fields, providing a wealth of information on stolen commodities, theft locations, and loss values.

This data can be used to measure supply chain security risks, especially when it comes to over-the-road transportation.

CargoNet's data allows members to make data-driven decisions, giving them tangible insight from historical theft trends.

The data can pinpoint areas of vulnerability surrounding the movement of goods, mapping patterns of theft against the flow of goods.

This information can also be used to forecast future cargo theft challenges, helping transportation professionals stay one step ahead.

Here are some key statistics that highlight the importance of cargo theft data:

The NICB recommends a layered approach to limit the impact of cargo theft. This approach involves multiple steps to safeguard your cargo, employees, and customers.

First, screen all employees, including drivers, warehouse employees, and those with access to shipping information. This helps identify potential risks and prevent insider threats.

Train your employees to be aware of hijack risks and prevention methods. This includes educating truck drivers on how to protect their cargo and stay vigilant on the road.

Choosing the right transportation partners is crucial. Look for companies that share your security philosophy and have a strong track record of protecting cargo.

Implement in-transit security measures to prevent cargo theft. This can include alarm systems, surveillance cameras, and advanced security seals.

Keep a close eye on your cargo, especially when it's sitting idle. Consider hiring security guards who can monitor your cargo and respond to any potential threats.

Technology can be a powerful tool in preventing cargo theft. Install alarm systems and response to all alerts. Ensure your facility is well-lit and secure.

Here are the NICB's recommendations in a summary:

Only a small fraction of cargo theft attempts result in an arrest, with railroads estimating that at most one in ten attempts leads to apprehension. This is a major concern, as many of these crimes are committed by repeat offenders.

In some cases, the same individual has been apprehended multiple times for cargo theft. For example, one railroad apprehended the same person five times in a single day, while another railroad reported arresting the same individual seventeen times for repeated cargo theft attempts.

Railroads have invested heavily in preventing cargo theft, with millions spent across the 140,000-mile U.S. rail network. However, this is not enough to tackle the highly organized and often transnational nature of these crimes.

To break this cycle, a sustained effort is needed, including dedicated federal resources and increased penalties. This is particularly important given the interstate and transnational nature of cargo theft, which requires coordination between different law enforcement agencies.

Railroads are working in coalition with other supply chain partners to address cargo theft. Here are some of the steps they are taking:

Cargo theft incidents spike during the winter holiday season, with 261 reported incidents to CargoNet.

The average value of these stolen goods is a staggering $360,528.

Thanksgiving Trends are a mix of the ordinary and the surprising. There were 174 theft records recorded in the analysis period with an average of 35 per year.

Many people think of Thanksgiving as a time for family and friends, but it's also a peak season for cargo theft. The average number of thefts per year is a significant concern for businesses and individuals alike.

Thanksgiving cargo theft trends show that some items are more popular targets than others. Unfortunately, no specific details are provided on which items are most targeted.

The holiday season is a time for giving, but it's also a time for increased vulnerability to theft. With more people traveling and shopping, there's a higher risk of cargo theft and other crimes.

In the analysis period, 174 theft records were recorded, highlighting the need for increased vigilance during the holiday season.

Labor Day Weekend Trends are a concern for trucking companies and cargo owners. There were 179 events involving cargo theft or theft of a trucking vehicle in the analysis period.

If you're planning to transport cargo over Labor Day Weekend, be aware that the highest rates of theft often occur on the days leading up to the holiday.

In the past, July 1 and 2 consistently showed the highest rates of theft, likely due to loaded conveyances left unattended before the holiday.

Memorial Day Weekend is a time for barbecues, beach trips, and honoring those who served. Memorial Day Weekend Cargo Theft Trends are a concern for many businesses.

There were 146 events reported with an average of 29 events per year. That's a lot of cargo thefts happening over a short period.

The stolen cargo in each event was worth an average of $264,016. That's a significant financial loss for companies.

Cargo thefts can happen anywhere, but Memorial Day Weekend seems to be a particularly vulnerable time.

Winter Holiday Trends are a concern for many businesses. In fact, cargo theft is a significant issue during this time, with 261 incidents reported to CargoNet.

The average cargo theft is valued at a staggering $360,528, making it a costly problem for companies. This highlights the importance of taking extra precautions to secure shipments.

Cargo thieves are getting creative with their methods, and it's hurting truckers, logistics companies, and shippers. They're no longer just stealing truckloads, but also using cyber fraud to steal online credentials and systems.

Robert Howell, chief supply chain officer at Academy Sports and Outdoors, has seen cargo theft rise in his 25 years in the supply chain. He's witnessed types of thefts including load interception, identity theft, double brokering, and cyber fraud.

In one case, a shipment of private label swimwear was intercepted on its way from Nevada to Texas, resulting in additional costs, shipment delays, and an impact on the consumer. The company had to react quickly and repurpose the product.

Cargo thieves are now using email spoofing to steal identities and broker loads to unsuspecting motor carriers. This happened to Tanager Logistics and Double Diamond Transport, where the CEO testified that the scammers pocketed the money.

The lack of investigations and prosecutions is emboldening cargo thieves to grow the size and sophistication of their operations. Two Tanager Logistics are listed on the FMCSA official website, with the imposter still active despite evidence being provided to FMCSA.