On the Rise: Cargo Theft Surges in First Quarter of 2024

The trucking industry faces an ongoing challenge with cargo theft, and recent data indicates a troubling trend of increasing incidents in the first quarter of 2024.  According to CargoNet, theft incidents increased 46% in 2024’s first quarter compared to 1Q 2023 and 10% from 4Q 2023.  According to the report:

*The average stolen shipment was $281,757 with the declared total being $76 million.

*An estimated $154.6 million of product was stolen during 1Q 2024.

*Illinois experienced the greatest spike in thefts (126% YOY) followed by California (72% increase YOY) and Texas (22% rise YOY).

*Appliances, alcohol and beverages were among the top stolen products but CargoNet noted that a “wide array of goods” were stolen, creating a threat to all industries.

*While the majority of thefts were “complex fraud schemes,” simple cargo theft continues to persist with popular hotspots being Southern California, Dallas-Fort Worth, Atlanta, and the corridor spanning New York, North Jersey, and Eastern Pennsylvania.

The surge in cargo theft poses serious challenges for trucking companies, shippers, and consumers including:

  1. Financial Losses: Cargo theft results in significant financial losses, impacting profitability and economic viability within the industry.
  2. Operational Disruptions: Theft incidents disrupt supply chains, leading to delays in deliveries, shortages of products, and disruptions to customer service, straining relationships with customers and suppliers.
  3. Safety Concerns: Cargo theft poses safety risks for drivers and other road users, particularly when stolen goods include hazardous materials or pharmaceuticals, underscoring the importance of security measures and driver awareness.

To help mitigate cargo theft, shippers should:

1.     Utilize Advanced Tracking Technology: Implement GPS tracking devices and real-time monitoring systems on shipments to track their location and movement throughout the supply chain.  This allows shippers to closely monitor their cargo and receive immediate alerts in case of any unauthorized activity or deviation from the planned route.

2.     Employ Secure Packaging and Seals: Use tamper-evident packaging and seals on cargo containers and trailers to deter theft and tampering during transit.  Secure packaging makes it more difficult for criminals to access the cargo without leaving visible signs of intrusion, thereby reducing the risk of theft.

3.     Choose Trusted Carriers and Logistics Partners: Work with reputable carriers and logistics providers that have established security protocols and a track record of implementing robust security measures.  Conduct thorough due diligence and background checks on potential partners to ensure they adhere to industry best practices and compliance standards.

4.     Implement Secure Loading and Unloading Procedures: Establish strict protocols for loading and unloading cargo, including designated secure facilities and supervised loading areas.  Train personnel on proper handling procedures and security measures to minimize the risk of theft during these critical stages of transit.

5.     Enhance Communication and Collaboration: Maintain open communication channels with carriers, logistics partners, and law enforcement agencies to share information, intelligence, and best practices for combating cargo theft.  Collaborate with industry stakeholders to identify and address vulnerabilities in the supply chain and develop proactive security strategies.

6.     Implement Security Training and Awareness Programs: Educate employees and stakeholders on the risks and consequences of cargo theft and empower them to recognize and report suspicious activity.  Provide training on security protocols, emergency response procedures, and crisis management to ensure everyone involved in the supply chain is prepared to respond effectively to potential threats.

7.     Conduct Risk Assessments and Security Audits: Regularly assess the security vulnerabilities of your supply chain and conduct comprehensive security audits to identify potential risks and areas for improvement.  Evaluate existing security measures and protocols to ensure they are effective and compliant with industry standards.

Road Scholar Transport employs various strategies and security measures to protect freight from cargo theft:

  • Never suffered a full cargo loss in company history
  • Expedited services available
  • Trailer number is visible on roof to facilitate identification.
  • 24 x 7 dispatch and oversight
  • Qualified, background checked drivers who are constantly trained on the latest cargo theft threats
  • Real time telematics track and monitor all shipment locations and temperature
  • Route and customer specific geofencing capability
  • Electronic door monitoring providing e-mail alerting, online monitoring/reporting, on-demand GPS location, and complete coverage throughout North & Central America
  • Dedicated and team services available
  • Navalock trailer locks are bolt cutter, sledgehammer and chisel proof, and are U.S. Customs approved
  • Babaco high security truck locks secure your high-risk freight via a lock that cannot be cut, broken, or shimmed
  • Brightly colored and easily distinguishable awareness trucks
  • Our strategically placed terminal network, relay capabilities and cross-dock locations allow us to reach 88% of major northeast distribution hubs in under 60 minutes.

Click here to get a quote.

The surge in cargo theft during the first quarter of 2024 highlights the ongoing challenges and vulnerabilities faced by the trucking industry.  By understanding the factors driving cargo theft, implementing proactive security measures, and fostering collaboration with law enforcement and industry partners, trucking companies can mitigate the risks and protect the integrity of the supply chain.  As the industry continues to evolve, vigilance, innovation, and cooperation will be essential in ensuring the safe and secure transportation of goods across the country.

 

Source: CargoNet 
Source:  CargoNet

 

Comments

Post a Comment

Popular posts from this blog

Shippers at Risk: Understanding Vicarious Liability in the Transport Industry

Could you imagine asking your boss for $23 million?   In a landmark 2004 case, C.H. Robinson, a third-party logistics provider, contracted Dragonfly Express to transport a shipment for one of their customers.   Unfortunately, the driver, who falsified logbook entries and drove at an unsafe speed, caused an accident resulting in two fatalities and a serious injury.   Despite C.H. Robinson's defense that they were "not responsible for the actions of an independent contractor or its driver," the court held C.H. Robinson, the driver, and Dragonfly Express liable for over $23 million in damages. The Role of Vicarious Liability This case highlighted the doctrine of vicarious liability, which can extend responsibility beyond the carrier to other parties involved, including shippers.   Under vicarious liability, if a shipper acts as a principal, they can be held liable for the conduct of the carrier or broker acting as their agent.   This principle implies that ship...
Read more

The Household Goods Shipping Consumer Protection Act: Empowering FMCSA to Combat Fraud

The trucking industry has long been vulnerable to fraudulent activities, particularly in the transportation of household goods.   To address this issue, a new legislative initiative—the Household Goods Shipping Consumer Protection Act—has been introduced.   This bill aims to grant the Federal Motor Carrier Safety Administration (FMCSA) enhanced authority to protect consumers from fraud in the interstate transportation of household goods. Key Provisions of the Act 1.      Civil Penalties for Unregistered Shippers and Hostage Situations : The act empowers FMCSA to impose civil penalties on unregistered shippers and entities that hold consumers' personal goods hostage.   This authority is crucial for deterring fraudulent practices and ensuring consumer protection. 2.      State Reimbursement for Enforcing Federal Laws : The bill provides FMCSA with explicit authority to reimburse states for enforcing...
Read more

Ensuring Safety and Compliance: The Essentials of Hazmat Shipping

  The transportation of hazardous materials (hazmat) demands heightened care and precision due to the significant risks associated with accidents, spills, or theft.   Choosing the wrong hazmat-certified trucking carrier can lead to severe consequences, including accidents, environmental damage, and hefty fines for non-compliance with regulations.   The Importance of Compliance and Safety in Hazmat Shipping Transporting hazmat involves a unique set of responsibilities.   In the U.S., nearly 3.3 billion tons of hazmat products are transported annually.   Shippers must ensure these materials are handled, transported, stored, and disposed of safely and in compliance with federal, state, and local regulations.   Failure to do so can result in significant liabilities, including cleanup costs, damage reparations, and penalties that can reach up to $25,000 per day. The Risks of Choosing the Wrong Carrier When arranging transportation, it is crucial to pla...
Read more