The Current State of Cargo Theft

Fraudulent activity has surged to new heights this year. In the second quarter of 2023 alone, shipment misdirection schemes and fictitious pickups have risen to nearly 700! This type of activity drives cargo theft. A second-quarter report from CargoNet revealed that more than $44 million in shipments were stolen during the Q2 period.

CargoNet also states that the average shipment value per theft was approximately $260,703, as cargo thieves continue to focus on high-value shipments. From food and beverages to electronics and clothing, thieves are targeting freight that can be sold easily on the black market. Further, a CargoNet study found that most cargo thefts took place in California, Illinois, Texas, and Florida.

As we roll into the holiday season, the risk for cargo theft increases significantly, as there is more demand for goods and products around this time of year. More volume equals more opportunities for thieves targeting trucks transporting high-value freight.

Every logistics professional knows that preventing cargo theft and other fraudulent activities is paramount.

However, economic downturns create even more opportunities for illicit activities, underscoring the need for robust safeguards within supply chain operations. The combination of a recession and the approaching holiday season is a recipe for increased cargo theft and other mishaps. The question then becomes: What can we do about it?

Monitor Economic Indicators

Stay informed about economic trends. Keep an eye on factors such as consumer spending, employment rates, and GDP growth. This information can help you anticipate economic shifts and adjust your cargo strategies accordingly.

Invest in Technology

Embrace technology and take the time to understand exactly what you’re investing in. Technology can enhance efficiency and visibility in your supply chain. Implementing advanced tracking and monitoring systems can help you manage your cargo more effectively, reducing the risk of loss or damage. Leveraging a complete transportation management system (TMS), like Transport Pro, can help bring all aspects of your supply chain together in one central hub, and provide real-time insights into your equipment and freight.

Have Ample Insurance Coverage

Review and update your insurance coverage as necessary. Ensuring that your cargo insurance is comprehensive and covers any potential risks during economic downturns can be the difference between being successful, and going out of business.

Be Willing to Adapt Your Strategies

Be flexible with your supply chain strategies. For example, consider the risks associated with specific regions and implement extra precautions where needed. Plan for every scenario and put contingency plans in place so any issues that do arise can be addressed promptly.

Focus on Employee Training & Retention

Investing in your employees builds skill and trust, which in turn allows them to more effectively make necessary changes, and contribute to the success of your freight operations. Creating a knowledgeable workforce helps to ensure that employees are committed to the well-being of the entire supply chain operation.

Protect Your Digital Systems

In today’s world, it’s more important than ever to protect your digital systems from cyber threats. Ensure that whichever transportation management system you’re using is secure enough to protect against cyber threats and the risk of data being stolen.

Secure Your Yards and Warehouses

Layering on additional security measures to protect your lots and warehouses can be a game changer. Ensure that the perimeter, entrances, building doors, and windows are well lit. You can also install heavy duty locks or seals. Moreover, you can display signage indicating that your cargo is being monitored and tracked. This can serve as a deterrent to thieves.

Conclusion

A multi-layered approach is often most effective. If you combine physical measures with technology, employee training, and collaboration with your partners, you can design a robust cargo protection strategy. It’s important to review your strategies on a regular basis and make tweaks where needed to stay ahead of cargo threats.

Transport Pro can equip you with the tools, integrations, and automations that will set your transportation business up for success. Book a FREE demo now to see how we can protect your operations!