Cargo Theft Costs Trucking, Logistics Firms $18M Daily
ATRI Report Finds $6.6 Billion in Annual Losses as Digital Crimes Rise
Key Takeaways:
- Cargo theft costs the U.S. trucking industry about $6.6 billion annually, or $18 million daily, according to a new American Transportation Research Institute report.
- The study found that 74% of stolen goods are never recovered, with thefts concentrated near major logistics hubs in states such as California, Texas, Illinois and Tennessee.
- ATRI urged stronger facility security, trusted access controls and state legislation to enhance enforcement and provide stakeholders with better tools to prevent cargo theft.
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Cargo theft costs the freight transportation industry $18 million each day in direct and indirect losses, with 74% of stolen goods disappearing forever, according to a new American Transportation Research Institute report.
determined that numerous weaknesses throughout the supply chain are making cargo an easy target for criminals and creating difficulties for victims to prevent future incidents. The report evaluated cargo theft data from motor carriers, logistics service providers, insurers and others to understand and quantify the scope and causes of cargo theft.
“Unfortunately, we’ve reached a point where cargo theft has become a standard cost of doing business for trucking companies, with consumers ultimately footing the bill for many billions of dollars in losses. Something must be done to stop these costly crimes,” said Ben Banks, president of TCW Inc. “ATRI’s new research on cargo theft puts real-world numbers to the issue and will hopefully motivate stakeholders to act quickly on solutions.”
“The Fight Against Cargo Theft: Insights from the Trucking Industry” was prepared by Jeffrey Short, vice president, and Dan Murray, senior vice president, of ATRI.
Findings showed the annual cargo theft cost to the industry is about $6.6 billion, or more than $18 million each day.
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Annual theft costs average $520,000 per motor carrier and about $1.84 million per logistics service provider, the report found.
Researchers conducted numerous interviews with industry participants such as motor carriers who lost goods due to cargo theft. They also had input from experts who work to monitor and prevent this crime.
“The new digital platform for cargo theft is possible, in part, because of rapidly expanding visibility into supply chains and reliance on information systems. Freight capacity can be sourced and contracted from anywhere in the world through an internet connection. While supply chain visibility and automation have dramatically improved over the last two decades, that same digital environment has given cargo thieves unfettered access to cargo and customer data. The result has been an influx of schemes where freight is stolen through nontraditional means,” the report stated.
ATRI examined how and where cargo theft occurs, prevention strategies, forming strong law enforcement partnerships and the role of insurance in risk management.
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Top categories for stolen merchandise are food and beverages, which can be easily resold.
(American Transportation Research Institute)
Cargo is more likely to be stolen near major freight and logistics hubs in large cities where significant goods are moving on interstate corridors while law enforcement capabilities are strained.
(American Transportation Research Institute)
Key areas for cargo thieves are California, Texas, Illinois and Tennessee. Urban areas with the highest rates of stolen trailers and trailer pilferage include Los Angeles, Dallas-Fort Worth, Atlanta and New York. Cities experiencing recent cargo theft spikes include Chicago, Memphis, Houston, Miami, Savannah, Ga., and Newark, N.J.
(American Transportation Research Institute)
Prevention strategies include protecting and monitoring facilities, trucks and trailers.
ATRI’s report found that the most common theft locations differ between motor carriers and logistics service providers.
For motor carriers, it’s their terminals, where 24% of thefts occur. Logistics service providers, on the other hand, experience 51% of theft at customer pickup locations through strategic schemes.
ATRI advised that motor carriers can thwart terminal theft by securing their facilities and providing access only to trusted, vetted people.
Comprehensive anti-cargo theft tools can be developed through state legislation to arm all stakeholders with enforcement resources and legal tools, ATRI noted.
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