CargoNet warns of extreme cargo theft in Q3 2024, driven by organized crime groups, with risks rising ahead of the holiday season.
Organized Crime Groups Fuel Theft Surge
CargoNet, a Verisk (Nasdaq: VRSK) business and leader in cargo theft prevention and recovery, has released its third-quarter 2024 analysis. Organized crime groups are driving a sharp rise in theft activity. CargoNet warns shippers of an “EXTREME” threat level, with risks anticipated to worsen as the holiday season approaches.
Organized crime groups have evolved their methods to exploit weaknesses in the supply chain, using document fraud, phishing, and identity theft to steal valuable shipments. Thieves have increased their use of phishing schemes to hijack motor carriers’ official email accounts. These compromised accounts are then used to place bids on shipments, bypassing compliance checks. This tactic has become more common as companies implement stricter email policies.
To evade detection, criminals frequently change license plates, driver’s licenses, and truck numbers between pickups. They are also stealing multiple loads during multi-day crime sprees, storing shipments at central points to avoid immediate detection.
Security Advice for Shippers: Trailer Seals, Cameras, and Fenced in Distribution Centers
In Q3 2024, CargoNet recorded 776 cargo theft incidents across the U.S. and Canada, marking a 14% increase compared to the same period in 2023. The total value of stolen goods exceeded $39 million. While there was a slight 1.6% decrease in incidents from Q2 2024, delayed reporting could close this gap.
Use Trailer Seals on FTLs
For FTL loads, TLI recommends using trailer seals to ensure shipments are not tampered with during transit. Shippers should always write the seal number on the bill of lading (BOL). At the delivery point, the consignee should verify that the seal number matches the one on the BOL to ensure the shipment’s integrity.
In addition, some distribution centers require pickup numbers to be referenced by the tendered driver to ensure
Protect Distribution Centers
Additionally, distribution centers (DCs) remain the most common location for freight theft. If you store valuable inventory or raw materials in trailers, consider investing in fences and surveillance cameras. These measures can significantly reduce the risk of theft and help protect your assets.
Shifting Commodity Targets
CargoNet has observed shifts in the types of goods targeted:
- Decreasing: Solar panels, motor oils, and energy drinks
- Increasing: Footwear, computers, high-end audio systems, and hard liquor
Top States, Commodities, and Locations
- Top State: California
- Top Commodity: Food and Beverage
- Top Location Type: Warehouse/DC
Partnering with TLI for Safer Freight Management
When shippers tender Full Truckload (FTL) shipments to TLI, some have additional security protocols in place such as providing a unique pickup number that the driver must reference when arriving to be loaded. This ensures the right driver picks up the correct freight, reducing the risk of mishandling. At TLI, we prioritize security and reliability by investing in advanced carrier vetting software, such as Highway and TIA WatchDog. This technology helps us avoid using questionable carriers, including those that operate under fake authority or are newly established without a solid track record. Organized crime groups are buying authorities in various states. Many shippers, along with unreliable garage shop brokers or large automated big-box brokers, fail to properly vet these carriers. As a result, these questionable operators often get assigned important loads. Our rigorous vetting process ensures that we do not engage with criminal enterprises, reinforcing our commitment to safety.
Choosing TLI as your logistics partner means prioritizing the safety of your valuable shipments. Some carriers might quote rates that seem $300 cheaper than others, but if it sounds too good to be true, it likely is. Consider the risk: saving a few bucks isn’t worth jeopardizing $3 million in inventory. TLI offers fair market rates and helps shippers acquire full cargo liability insurance, ensuring that the coverage reflects the total value of your load. Unlike the default $100,000 coverage on FTL loads, we tailor coverage to meet your specific needs before load tendering. Trust TLI to deliver not only your freight but also peace of mind.