With cargo thefts surging, bolstered by sophisticated new tech-based methods, it has never been more important for shippers and their partners to emphasize security best practices. By Tom Gresham
C argo theft is on the rise, and variety of technologically based tools to steal goods and materials in fresh ways— and to create new challenges for supply chain and logistics managers. CargoNet recorded 692 cargo thefts in the third quarter of 2023, a 59% increase thieves are becoming savvier and more sophisticated. They use a when compared to the same period in 2022. Still, even with cargo thefts surging, the supply chain field as a whole largely does a good job of preventing theft, says Keith Lewis, vice president of operations for CargoNet at Verisk. The problem is “that when things go wrong, they go very wrong, and it has a significant impact,” he adds. The chief challenge for companies is taking the necessary steps to prevent theft without slowing the movement of freight significantly and undermining their profits. Here are some key ways that shippers and others can work to combat cargo theft in the most challenging landscape in years. 1. Understand the new vulnerabilities. Cargo theft can be divided into two types: straight theft and strategic theft, according to Scott Cornell, transportation segment lead, crime and theft specialist at Travelers. Straight theft, the most common and traditional form, means physically stealing cargo. Strategic theft is less straightforward and it’s rapidly on the rise, jumping a startling 430%
most of the resources that have been built over decades around cargo theft are concentrated in those traditional hotspot areas?” 2. Put in place processes, procedures, and culture. Companies should have strong processes and procedures in place to prevent theft, and maintain diligent training and oversight of those processes to ensure team members do not cut corners. Cargo theft is often about people failing to follow basic protocols. “Many cargo thefts, especially pilferages, are crimes of opportunity,” notes J.J. Coughlin, chairman of the Southwest Transportation Security Council. Security needs to be treated as a company-wide point of emphasis—a focus integral to an organization’s culture and to its relationship with its partners and providers. “Everyone should be pulling the rope in the same direction and understanding what you’re trying to do and how you’re trying to do it,” Coughlin says. Cornell agrees that solid processes and procedures serve as the foundation for cargo theft prevention. For instance, he points to the value of using a “red zone.” “Cargo thieves will sit in surveillance outside a distribution center and follow loaded trucks as they come out,” Cornell says. “They hope that the driver goes straight to a truck stop to fuel and have a meal before they get back on the road. That gives them an opportunity to steal the tractor and trailer.
year-over-year in the third quarter of 2023. “Strategic theft is when thieves use methods such as identity theft, fictitious pickups, and double brokering scams,” Cornell explains. “That’s done partially virtually. “We’ve seen the largest increases in that category since about halfway through 2022, all through 2023, and we expect it to continue into 2024,” he adds. Thieves essentially find ways to exploit the systems that have been implemented to make the supply chain faster and more efficient. “Whether that’s load boards, the use of email, or internet platforms—all those things that have been put in place to help the supply chain move as quickly as demand—are the same things that cargo thieves take advantage of,” Cornell says. The pressure to move freight faster to keep up with customer expectations can create “an environment where things fall through the cracks,” Cornell says. “Moving freight at the speed of light, even if we are do a very good job of vetting, creates vulnerability,” Lewis says. While busy port areas remain the most-targeted areas for thieves, the use of identity theft and other virtual methods means that thieves can steal cargo anywhere, widening the geography of where thefts are occurring to the interior of the United States and other nontraditional cargo theft areas. “That will be a big shift for the industry going forward,” Cornell says. “How do you deal with that, when
February 2024 • Inbound Logistics 43
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