News / New warning as cargo crime surges across North America

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Cargo crime continues to rise in North America: in the first half of this year, instances of cargo theft surged 49%, according to supply chain visibility firm Overhaul.

Its research includes a warning that cargo owners need to step up their risk management efforts.

Criminals are better organised, and the damage they inflict on the cargo industry and freight owners keeps growing. The average loss from cargo theft in the first six months of this year was $115,230, 83% higher than the average in H1 23.

According to some observers, the pandemic worked as a catalyst for cargo crime, as supply chains rose to prominence in public awareness and criminals realised freight posed a relatively easy target, detection rates were low and digitalisation offered avenues of online fraud. Moreover, a lot of the theft is perpetrated by organised crime.

“Overhaul considers the threat of cargo theft in the United States to be high, and on the rise, due to the continued increase in the level of organisation and sophistication of criminal groups focusing on high-value cargo,” the study warns.

In another study conducted last year, the US National Retail Federation found loss of inventory amounted to more than $112bn in 2022, with two-thirds of the tally attributed to cargo crime.

“The increasing frequency and scale of cargo thefts make it clear that companies need more supply chain risk management and control over their shipments,” commented Overhaul founder and CEO Barry Conlon. “Criminals are not only more organised, but they’re also tracking loads as they leave warehouses and distribution centres known to store valuable products, waiting to strike when vehicles are left vulnerable.”

Overhaul counted 787 incidents in the US in H1 24. Averaging nearly two thefts a day, California was the most affected region – to a large extent as a result of the large volumes of cargo entering the US through its ports. Texas was the second-worst affected state.

In Mexico, Overhaul registered 5,140 incidents, an average 57 cargo crimes a day, with going after trucks in transit the predominant method, used in 72% of the recorded cases.

Most of the cargo theft in Mexico – 84% – involved some form of violence, unlike in the US and Canada. Violence has been part of the standard operating procedure of Mexican gangs going after cargo, whereas in the US violence is more likely to be employed by individuals, the report indicates.

Canada is showing less dramatic trends than the other two USMCA countries. Theft there is heavily concentrated in the province of Ontario, accounting for 93% of recorded cases. Alberta and Saskatchewan had reported no incidents last year, but have registered instances of cargo theft this year.

Electronics were the prime target of criminals, accounting for 23% of all cargo thefts in the US, followed by home and garden products, at 14%. In Mexico, the food and beverage sector has been the top target for criminals, whereas their Canadian counterparts have aimed foremost for cars and auto products.

While criminals continued to go primarily after trucks in transit, theft at facilities have risen sharply this year, boosting its share of the overall tally from 4% in 2023 to 19% this year, Overhaul found.

This goes hand in hand with the advance of organised crime and its increasing sophistication in leveraging technology to get hold of loads by posing as bona fide truckers. One recent scheme has involved fake ‘new entrant safety audits’, supposedly from the Federal Motor Carrier Safety Administration, to obtain pin numbers and critical information from trucking companies to bid for loads.

And digitisation has made it easier for criminals to forge carrier documentation and fake certificates, and made it harder for cargo owners to verify the identity of the companies that bid for their freight.

Security experts are unanimous that there is no ‘silver bullet’ and urge cargo owners to employ multiple risk assessment and fraud prevention tools to detect potential fraud.

“To safeguard shipments from hijacking and pilferage during stops, carriers and drivers should adopt a multi-faceted approach,” Overhaul’s analysts wrote.