A recent rise in freight theft isn’t likely to slow down anytime soon, as thieves have gotten more sophisticated and widespread.
According to cargo security company Overhaul, there were 38% more cargo thefts in the first quarter of 2024 compared to the same timeframe last year. Nearly half of those were from warehouses and distribution centers, with an average loss of more than $210,000 per theft. What’s even more concerning, though, is that the people committing these crimes are finding faster and more efficient ways to steal cargo.
“It’s going to get worse before it gets better,” Overhaul intelligence and response manager Danny Ramon says, describing how “the new normal” has become a highly-advanced method known as “strategic theft.”
Strategic theft is when someone uses stolen identities to impersonate brokers and carriers in order to reroute freight directly into the waiting arms of thieves. Ramon says these “bad actors” are able to circumvent or even forge paperwork, and will often have professional supply chain experience that allows them to come off as knowledgeable and convincing. It also makes it so thieves can avoid direct exposure since stolen cargo comes directly to them through means that appear on the surface to be legitimate. According to data from CargoNet, documented strategic theft incidents increased by 430% year-over-year in Q3 of 2023. Ramon says this method of stealing cargo will likely become the number one method “within two years, if not sooner.”
Read More: ‘Organized Crime at its Finest’ — Huge Rise in Cargo Thefts Continues
Ramon notes that while cargo thefts used to be largely centered around Southern California, they now span the entire West Coast from San Francisco down to Long Beach. Hotspots for truckload thefts have also started to proliferate into Arizona and the rest of the Southwest, where thieves know truckers picking up cargo in California will often make their first refueling stop because of Arizona’s lower gas prices.
Ramon says there are a few telltale signs brokers, shippers and carriers can look out for to prevent cargo theft. First, he recommends that wherever cargo is stored or transported, one person should be dedicated to keeping an eye out for red flags. That means checking trailers to make sure that there aren’t any signs of official markings that have been scratched off or altered, and not loading any truck trailers sealed with nuts and bolts rather than rivets.
“Every trailer comes out of the factory with rivets,” Ramon says, describing how thieves will replace them with nuts and bolts for easier access once they’ve driven off with the freight. “When a nut and bolt is put in place of a rivet, there’s only one reason for that – to access the cargo undetected.”
