DOT Seeks Industry Input on Cargo Theft Risks
Crimes 'Costing the Economy Billions Annually,' Agency Says
Key Takeaways:
- DOT wants input from the public, state and local officials, law enforcement officers and freight stakeholders by Oct. 20.
- Cargo theft at marine terminals and during vessel-truck-rail transfers present a particular challenge.
- Two main forms are straight thefts of trailers, pilfered containers and loads at truck stops, and sophisticated operations carried out by organized crime rings.
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The is casting a wide net for about how to deter thieves acting on impulse and organized criminals from stealing cargo at truck stops and distribution hubs.
“Cargo theft at marine terminals and during vessel-truck-rail transfers present a particular challenge due to the high volumes and values of goods moving through U.S. ports,” the Sept. 19 information request stated. “Cargo theft is a growing concern for the U.S. transportation system, costing the economy billions annually.”
The public call for ideas came from Transportation Secretary Sean Duffy’s office in a Federal Register notice titled “Protecting America’s Supply Chain from Cargo Theft — Request for Information.”
Cathy Gautreaux, deputy assistant secretary for Multimodal Freight Infrastructure and Policy, issued the RFI. It explained that cargo theft is taking two main forms:
"Cargo theft at marine terminals and during vessel-truck-rail transfers present a particular challenge," according to a DOT information request. (JodiJacobson/Getty Images)
- Opportunistic ‘‘straight thefts’’ of trailers, pilfered containers and loads at truck stops, marine terminals or multimodal distribution hubs.
- Sophisticated plunders in “highly coordinated operations” carried out by organized criminals in strategic theft networks that may involve fraudulent carriers, inside jobs, staged diversions and cyber-enabled thefts.
“Both categories create significant economic losses, disrupt supply chains, and in some cases fund broader illicit activities such as narcotics trafficking, counterfeiting and human smuggling,” DOT noted. “Cargo theft undermines our economic strength and security by contributing to supply chain disruptions, driving up costs for businesses and consumers, and eroding confidence in freight transportation, including degrading trust among international trading partners.”
Because cargo theft includes all types of freight, DOT wants input by Oct. 20 from the public, state and local officials, law enforcement officers and such freight stakeholders as drivers, carriers, shippers, warehouse managers, airport operators and insurers.
How Will DOT Use the Data?
- Coordinate with law enforcement and regulatory partners to close loopholes enabling carriers/transporters barred from operating to resume freight operations under different names/affiliations.
- Better assess security risks by sharing information through existing federal, state and industry partnerships.
- Improve interagency coordination to exchange information among states, municipalities, industry, the DOT and federal enforcement agencies (U.S. Department of ýland Security, FBI, U.S. Customs and Border Protection).
DOT noted it has a unique role in determining how to thwart cargo theft because it deals with numerous types of freight and can improve coordination across modes, collect data and strengthen resilience by working with industry, law enforcement and other federal agencies.
“Although law enforcement agencies and industry stakeholders track incidents, reporting is fragmented and inconsistent, and national-level visibility is limited,” DOT explained.
The department wants to learn about best industry deterrence practices and technology such as successes with GPS tracking, electronic seals, AI-driven monitoring and secure parking.
DOT also wants to determine what actions it could experiment with during the next year in prevention, theft reporting and enforcement partnerships.
Other Questions
- How should DOT measure success in reducing cargo theft, and what performance metrics are best to track?
- Do industry stakeholders report cargo to particular agencies or jurisdictions?
- What barriers prevent industry from reporting thefts to federal agencies, and how can DOT reduce obstacles?
- What commodities are high risk for theft? Do risks depend on whether cargo is domestic, imported or exported?
“This RFI supports DOT’s broader role in protecting supply chain resilience, reducing crime, and promoting economic strength and global competitiveness, aligning with administration priorities,” DOT stated.
According to , cargo thefts cost the American economy up to $35 billion per year and have risen 1,500% since the first quarter of 2021. The average value per theft is more than $200,000.
“While businesses have invested heavily in security measures to protect their cargo, it’s not enough to combat the . The root cause of this epidemic lies in the lack of effective enforcement and prosecution of these criminal operations. Too often, thefts go unreported or unsolved, and even when perpetrators are caught, penalties are too lenient to act as a deterrent,” ATA stated recently.
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