Cargo theft up 49 per cent amid rising criminal sophistication, says report

Freight hubs and major cities across the U.S. and Canada are witnessing a surge in cargo theft, with incidents surging by 49 per cent in the first half of 2024 compared to the same period last year, according to Overhaul’s United States & Canada H1 2024 Cargo Theft Report.

The increase in theft incidents has been accompanied by a dramatic rise in financial impact. The average loss per incident skyrocketed to $115,230, marking an 83 per cent increase from the same period last year. This trend underscores the growing sophistication and ambition of cargo thieves, who are systematically targeting high-value shipments.

California remains the epicentre of this crisis, accounting for 45 per cent of all reported cargo thefts, followed by Texas at 14 per cent. Particularly concerning is the Southern California Red Zone, defined as the first 200 miles of travel for shipments departing from this area, which alone concentrated an alarming 36 per cent of all cargo thefts in the country, averaging 58.6 thefts per month, nearly two each day. This region experiences as many cargo thefts as Texas, Tennessee, Illinois, Georgia and Arizona combined.

“This report should be a wake-up call. We conduct this research to help quantify the risk shippers need to mitigate in their supply chains. The increasing frequency and scale of cargo thefts make it clear that companies need more supply chain risk management and control over their shipments,” said Barry Conlon, CEO and founder of Overhaul. “Criminals are not only more organized, but they’re also tracking loads as they leave warehouses and distribution centers known to store valuable products, waiting to strike when vehicles are left vulnerable.”

The most sought-after target for thieves was electronics, representing 23 per cent of all thefts. Home and garden products are a distant second at 14 per cent. The report also highlights a concerning trend in the methods employed by criminals. Facility thefts have seen a significant uptick, now representing 19 per cent of incidents, a sharp increase from just four per cent in the first half of 2023. Additionally, there’s been a rise in large-scale pilferage incidents, contributing to a 17 per cent increase in the average value of pilferage thefts.

“With criminal networks becoming increasingly organized and sophisticated, companies should implement a multi-layered approach to safeguard their supply chains,” said Ron Greene, EVP, risk, intelligence and response. “Effective risk management today means rigorous verification of everyone involved in moving or storing shipments, extreme diligence in vetting carriers and drivers — especially in high-risk zones like Southern California — and employing tracking technology throughout the shipment’s journey. With these measures, companies can better protect their cargo, quickly identify potential threats, and engage law enforcement efficiently if a theft occurs.”