- Cargo theft in North America surged 49% in the first half of the year.
- Criminals are increasingly organized, causing significant financial losses.
- Experts urge enhanced security measures to combat rising theft.
Cargo crime in North America has surged dramatically, with instances of theft rising by 49% in the first half of this year, according to supply chain visibility firm Overhaul. The report highlights the increasing organization and sophistication of criminals targeting the cargo industry, reports The Loadstar.
Increased Risk and Financial Impact
Overhaul’s research warns cargo owners to enhance their risk management strategies as criminals become more coordinated. The average loss per cargo theft incident in the first six months of the year was $115,230, an 83% increase from the previous year.
“Overhaul considers the threat of cargo theft in the United States to be high, and on the rise, due to the continued increase in the level of organisation and sophistication of criminal groups focusing on high-value cargo,” the study warns.
The COVID-19 pandemic has exacerbated cargo crime, as supply chains became more prominent and vulnerable to organized criminals. The ease of targeting freight, low detection rates, and opportunities for online fraud have contributed to this rise.
Regional Differences in Cargo Theft
The study found that California and Texas were the most affected states in the US, while Mexico saw 5,140 incidents, with most involving violence. Canada experienced less dramatic trends, with the majority of thefts concentrated in Ontario.
“The increasing frequency and scale of cargo thefts make it clear that companies need more supply chain risk management and control over their shipments,” commented Overhaul founder and CEO Barry Conlon. “Criminals are not only more organised, but they’re also tracking loads as they leave warehouses and distribution centres known to store valuable products, waiting to strike when vehicles are left vulnerable.”
Criminals primarily targeted electronics in the US and food and beverages in Mexico, while Canadian thieves focused on cars and auto products. There has also been a sharp rise in thefts at facilities, increasing from 4% to 19% of total incidents this year.
The Role of Technology in Crime
Organized crime groups have increasingly leveraged technology to commit cargo theft, including schemes involving fake safety audits and forged documents. Digitization has made it easier for criminals to deceive cargo owners and harder for owners to verify the legitimacy of carriers.
Security experts emphasize the need for a multi-faceted approach to prevent cargo theft, as no single solution can fully safeguard shipments.
“To safeguard shipments from hijacking and pilferage during stops, carriers and drivers should adopt a multi-faceted approach,” Overhaul’s analysts wrote.
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Source: The Loadstar
