Second Quarter Sees Huge Increase in Cargo Thefts
Goods with a combined value of $44 million were reported stolen in the United States and Canada.
Truckload carriers across the United States witnessed a surge in cargo theft incidents during the second quarter of this year. Thieves targeted a wide range of valuable items, including electronics, food and beverage products, and construction materials.
CargoNet, a firm under Verisk Analytics specializing in tracking voluntarily reported cargo thefts, revealed that there were 566 reported incidents in the United States and 16 in Canada during Q2. This marked a significant 57% year-over-year increase compared to the same period in 2022.
“In total, thieves made off with more than $44 million worth of goods in the second quarter of 2023, and the average value of each stolen shipment increased by nearly $100,000 to $260,703 per theft, as cargo thieves increasingly focused on high-value shipments,” CargoNet announced in a press release.
According to CargoNet California, Texas, Florida, and Illinois emerged as the states with the highest occurrences of cargo theft.
A Look into Q2 Cargo Theft Trends
Overhaul, a visibility and risk management platform, reported 123 cargo theft incidents during the second quarter, representing a 15% year-over-year increase from 2022. Overhaul’s data indicated that cargo theft incidents were more frequent near freight hubs and major urban centers, creating hotspots in states like California and Georgia, which ranked as the top two states for cargo theft risk.
The average loss value per incident during the second quarter reached $428,409, a 55% increase compared to the first quarter.
Both Overhaul and CargoNet emphasized that while they collect and report cargo theft data, their approaches differ in terms of data sources and the specific aspects of the supply chain they focus on. They also noted differences in the number of clients or users who self-report theft incidents.
They reported that cargo thefts primarily occurred near warehouses, distribution centers, unsecured parking lots, and company truck yards and premises.
Danny Ramon, an intelligence and response manager at Overhaul, explained that publicly accessible locations where trucks park were considered unsecured parking lots, without a standardized industry definition for such areas. These included places like retail parking lots, truck stops, highway rest areas, and restaurants.
Cargo thieves increasingly targeted full truckloads as well as pilferage, which involves stealing smaller quantities of cargo and individual items from trucks. CargoNet data revealed a 17% year-over-year increase in the theft of full truckloads, most frequently occurring in California, Texas, Florida, and Illinois. The report also highlighted significant theft activity around New York City and Philadelphia. This mostly affected high-value shipments traveling on the Interstate 40 corridor through Arizona, California, and New Mexico.
Counterfeit Pickups on the Rise
The second quarter also witnessed a substantial uptick in counterfeit pickups led by cargo thieves. CargoNet recorded 127 more false pickups year-over-year during the quarter. These incidents were most common in the Los Angeles area but occurred throughout the United States. Certain counties, including Maricopa County, Arizona, Travis and Chambers counties in Texas, and DeKalb County, Georgia, were also heavily targeted.
California and Texas experienced higher levels of cargo theft compared to other states due to the massive amount of goods passing through these areas consistently. Georgia, Kentucky, and Indiana also reported increased cargo theft during the quarter. Home and garden products and food and beverage goods were the most targeted loads.
Cargo Thieves are Getting Smarter and Harder to Catch
Cargo thieves strategically targeted valuable loads that could be easily sold. The stolen items included electronics, home and garden goods, food and beverage supplies, construction and industrial materials, and auto parts. These criminals typically earned a fraction of the retail value when selling an entire trailer of stolen cargo, usually around 15% to 20%.
Stolen cargo goods were often sold on online platforms like eBay and Amazon. A concerning trend known as “strategic thefts” was also used. It involved cargo thieves arranging for an entire tractor-trailer filled with goods to be fraudulently delivered to an Amazon warehouse. The culprits were able to sell the stolen goods without physically touching it. Instead they brokered it through middlemen, ultimately reaching an Amazon distribution center where they had a merchant account set up. The stolen goods were then accepted into the warehouse, added to inventory, and sold on the platform.
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