Cargo Theft Reaches Record Highs, Costing Businesses Millions

In recent months, cargo theft has emerged as a significant concern for businesses, insurers and supply chains nationwide. According to CargoNet, a staggering $63 million worth of goods were reported stolen in just the first quarter of 2025, with an additional $7.5 million lost during the Fourth of July holiday alone. The average stolen load now exceeds a jaw-dropping $200,000, highlighting the severity of this issue.

In the past 18 months, the National Insurance Crime Bureau (NICB) has played a crucial role in addressing this rising threat, assisting with over 240 cargo crime investigations and recovering goods valued at nearly $40 million. NICB President and CEO David J. Glawe emphasizes the broader implications of cargo theft, stating, “When manufacturers are forced to account for stolen merchandise, the costs are passed along to the consumer.”

The Hidden Costs of Cargo Theft

While the U.S. government doesn’t officially track cargo theft, industry insights reveal that only about one in ten thefts is reported. Scott Cornell, vice president of transportation and crime specialist for Travelers, notes that even this limited data is sufficient to identify alarming trends. Surprisingly, the primary targets for thieves have shifted from high-end electronics to food and beverages, which are easier to steal and always in demand. Cornell connects this trend to inflation, noting that certain commodities, particularly food products, are prime targets during economic fluctuations.

Experts, such as Keith Lewis from CargoNet, point out that thieves are quick to adapt to market changes. For instance, during pandemic-related shortages, household goods became prime targets, while recent trends indicate a rise in thefts of electronics and copper, driven by demand and concerns about tariffs.

The Rise of Sophisticated Crime Tactics

The landscape of cargo theft has evolved, with criminals using increasingly sophisticated methods. Double brokering, where criminals impersonate legitimate brokers to hijack shipments, has become prevalent. Small trucking companies often unwittingly participate in these schemes, yet many have provided vital leads to law enforcement.

Additionally, cybercrime tactics have surged, with incidents involving fictitious pickups and identity theft increasing from about 5% to 40% of all thefts in recent years. International crime rings, operating in countries such as India, Canada, Uzbekistan, and Mexico, are also becoming more prominent in cargo theft operations.

Implementing a Multi-Layered Prevention Strategy

The consequences of cargo theft extend beyond immediate financial losses. They can damage customer relationships, inflate insurance costs and harm a company’s reputation. To combat these challenges, experts advocate for a multi-layered security approach, including employee education and role-specific security protocols. Companies must recognize that “freight at rest is freight at risk,” combining best practices for drivers with physical security measures and advanced technologies such as covert tracking devices.

Conducting simulated theft drills twice a year is crucial to ensure staff are prepared for crises, and prompt reporting to law enforcement can significantly enhance the chances of recovery. As cargo theft continues to rise, proactive measures and collaboration will be key in safeguarding businesses and their supply chains.

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