Boom in Cargo Theft Highlights the Need for Enhanced Prevention Measures
Cargo theft incidents increased by over 46% in the first quarter of 2024 compared to the same period last year, as reported by CargoNet. This rise also marks a 10% uptick from the previous quarter, with 925 recorded incidents averaging a stolen shipment value of $281,757 each. The estimated value of stolen goods reached a staggering $154.6 million.
Growing Sophistication
The threat of cargo theft is increasing in frequency and complexity. Keith Lewis, vice president of operations at CargoNet, says thieves' methods are becoming increasingly sophisticated and involve fraud, identity theft, and forgery. These crimes are not limited to a specific industry; they impact various commodities, from electronics to food and beverages. This growing sophistication pushes the need for advanced prevention measures.
Key Hotspots and High-Value Targets
Unattended loaded trailers remain particularly vulnerable, with hotspots identified in Southern California, Dallas-Fort Worth, Atlanta, and the corridor from New York to Eastern Pennsylvania. High-value items such as electronics, food, solar panels, and energy drinks are targeted due to their high resale value and ease of disposal.
Prevention With Strategic Trip Planning
Effective trip planning is a powerful tool we should use to mitigate cargo theft risk. We have the power to make a difference. Drivers must plan their routes to avoid hotspots and ensure their trailers are never left unattended in unsecured locations. This is particularly important during holidays when shipping volumes surge and security measures might be relaxed.
Implications for Insurance and Interchange Agreements
If you follow me at all, you probably have heard the story of my stolen port container in 2015. It had six-figure implications. This bump in theft will increase insurance premiums on commercial if not all, policies. Cargo insurance policies are a must for Carriers, Shippers, and Brokers to ensure they're protected and their clients' property is protected. Brokers should have strong contingent cargo and auto policies to mitigate risk even further. The theft of containers and chassis also poses significant financial burdens on port dray carriers as chassis' and containers are typically the property of the ocean shipper or the chassis' pool which could lead to heavy replacement costs under interchange or per diem rates until that equipment is found and returned. Comprehensive coverage is a must, especially with interchange agreements/UIIA, etc.
Leveraging Technology for Theft Prevention
Utilizing advanced technology is essential for preventing cargo theft. Tools like Motive's Omnicam provide unparalleled visibility, allowing operators to monitor shipments in real time. Their GPS tracking offers precise location data, geofencing capabilities, and dual-facing dashcams that capture accurate, detailed footage, providing crucial evidence but also notifying when cargo or equipment has left a specific area. These technologies help prevent theft and enhance the chances of recovering stolen goods by providing actionable data. We had a vehicle stolen in Houston in 2022, thanks to Motive, it was recovered within 10 minutes with the culprit in custody.
This issue affects us all and requires us all to exercise some vigilance and a proactive approach. Strategic trip planning, enhanced cargo visibility, and ensuring comprehensive insurance coverage significantly reduce the risk associated with cargo theft.
Cargo theft is about both prevention and recovery and integrating advanced tech and vigilance, we can maintain the integrity and security of our cargo, and equipment.