Increased Risk of Cargo Theft During Long July 4th Holiday Break

As the highly anticipated July Fourth holiday weekend approaches, CargoNet has issued a concerning report.

The report indicates that theft in the supply chain has reached its highest levels in over a decade and shows no signs of abating.

To assist supply chain professionals in minimizing theft risks during the upcoming holiday, CargoNet’s analysts meticulously examined theft patterns surrounding July 4 over the past five years. Their analysis revealed a total of 119 reported theft incidents during this period, with a noteworthy observation that theft occurrences surpassed the average activity levels as early as June 29. The peak of theft events was observed on June 30, but the numbers remained elevated until the commencement of the July 4 holiday itself. CargoNet attributed this phenomenon to unattended loaded conveyances prior to the holiday, as the absence of vigilance becomes apparent only upon businesses reopening and operations returning to normal.

During the aforementioned holiday analysis period, theft events were predominantly concentrated in San Bernardino County, California; Dallas County, Texas; and Cook County, Illinois. Cargo thieves exhibited a particular interest in pilfering shipments of computers, computer accessories, lumber, as well as various food and beverage products such as sodas, snack foods, and prepared meals. The thefts were fairly divided between the outright theft of entire loaded conveyances and the burglary of loaded conveyances.

Fraud and Theft Schemes on the Rise Nationwide

While fraud schemes did not pose a substantial threat in previous years, CargoNet has documented an alarming surge of nearly 500 fraud and fictitious pickup incidents since November 2022. These incidents of deceit have witnessed a staggering year-over-year increase of 503%. CargoNet anticipates that organized crime groups responsible for these thefts will continue their illicit activities throughout the holiday weekend, which are being perpetrated across the United States, albeit more frequently in Southern California.

Logistics brokers and shippers nationwide must exercise extreme vigilance, particularly concerning shipments of alcoholic beverages, energy drinks, solar panels, televisions, automobile fluids and oils, tires, and copper. Fictitious pickups have been most commonly reported in Los Angeles County, California; San Bernardino County, California; Chambers County, Texas; Maricopa County, Arizona; and Orange County, California. CargoNet has recently received reports indicating a heightened targeting of shippers in Harris County, Texas; Travis County, Texas; DeKalb County, Georgia; and Henry County, Georgia.

To mitigate the associated risks, logistics brokers are advised to share pickup information exclusively with verified email addresses that have a long-standing association with the motor carrier authority. In the event of a shipment cancellation, it is crucial to modify the pickup information accordingly. Furthermore, logistics brokers should consider implementing limitations on the number of shipments entrusted to a newly introduced or reactivated authority within their network, to ensure heightened caution during periods of dormancy.

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