Trucking Weathers Another Increase in Cargo Theft for Q2
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The trucking industry continued to weather an increase in cargo theft activity during the second quarter of 2024.
Verisk Analytics’ CargoNet reported that cargo theft incidents increased nearly 33% year-over-year to 771 incidents across North America, with a total estimated value of $68.5 million in freight. The average value for shipments targeted was $150,711.
“The consistency of our numbers tells me that our numbers are pretty solid,” said Keith Lewis, vice president of operations at CargoNet. “Even though we’re seeing increases, we’re seeing increases in proportionate numbers.”
Lewis has seen a notable uptick in law enforcement and recovery companies cracking down on cargo theft crimes during the quarter but noted that this has not led to increased arrests due to the preponderance of fraud and strategic theft that is conducted remotely by international criminal groups. “The criminal MO hasn’t changed, probably in three or four quarters,” Lewis said. “It’s still the same deception — internet fraud, clandestine operations overseas — and now we’re getting people to go public other than myself.”
Lewis
In one bright spot, overall theft activity in Q2 decreased 10% from the all-time high of 925 incidents that was reached during the first quarter.
In terms of regional activity, the CargoNet report found that theft activity was the highest in California, Texas and Illinois. In fact, these three states represented 57% of all cargo thefts that occurred during the quarter. Vitamins, alcohol and over-the-counter skincare products were highly targeted.
CargoNet recorded 771 theft incidents in the second quarter of 2024, representing a 33% increase compared to the second quarter of 2023. However, theft activity decreased by 10% from all-time highs established in the first quarter of 2024....https://t.co/mntuOUIRnj pic.twitter.com/hatJ05kVOB — CargoNet (@CargoNet) July 11, 2024
“I’ve been saying for a while it’s going to get worse before it gets better,” said Danny Ramon, director of intelligence and LE Connect at cargo security technology company Overhaul. “We are continuing to see an increase in not just volume, but geographic spread of virtually every type of cargo theft that there is. I don’t think that there’s ever been a time in the industry that we’ve been charting an increase across so many different types of theft.”
The company on June 27 said that its team helped law enforcement recover cargo from a rail pilferage in Arizona. Two people were arrested in connection with this incident.
Ramon
“Large-scale pilferage — we’re seeing new tactics evolve with this,” Ramon said. “We’re seeing the actors who perform these thefts become more organized and sophisticated, even around these low-tech thefts. They’re putting more effort into it.”
Fusion Transport has started to see cargo theft attempts impact its operations in Dallas. CEO Frank Matarazzo noted that the state has been a hot spot for cargo thefts, but his company had avoided being impacted until this year. He also has seen operations being affected in Chicago and New Jersey. “Last year I was seeing and hearing about more issues isolated to Southern California, and now I’m seeing this even expand past Southern California,” he said.
Matarazzo said it can be difficult for a carrier to become aware of being targeted in time to do something about it. Carriers with little experience combating cargo theft may also not know how to respond, he said.
Cornell
“No surprise that cargo thefts have continued to increase,” said Scott Cornell, transportation lead and crime and theft specialist at insurance firm Travelers. “Right now, there is no indication that it’s going to slow down, [but] we may see a temporary slowdown or a temporary leveling because of some of the recent great work that’s been seen across the country between law enforcement and private sector getting some busts.”
Cornell pointed out that the increase in cargo thefts year-over-year was smaller in the second quarter compared to Q1 but suspects this slowdown is likely temporary and tied to law enforcement and recovery actions. Cornell believes these arrests would have made more of an impact just six years ago, when cargo theft activity wasn’t so heightened.
“I don’t think it’s going to come back down,” Cornell said. “But I do think, at some point, it will level off. We’ll have a new level, it’ll just be a higher level than what we had five or six years ago. But at some point, it will level off, and that will be the new norm. It’s way too early to say that we’re starting to see that slowdown and that leveling. I would need to probably see three consistent quarters of that to say we’re starting to reach the peak and it’s going to level off.”
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