By Ahsan Ali
A new report from the American Transportation Research Institute (ATRI) estimates that cargo theft is costing the U.S. freight industry about $18 million every day. Even more jarring, almost three quarters of all stolen shipments are never regained.
The 70-page report reveals a series of major weak points in the country’s supply chain, undercutting theft prevention. The institute collected data from trucking companies, logistics providers, insurance companies and other experts in transportation to learn more about why and how these types of thefts occur.
“We’ve gotten to the point where cargo theft is just a cost of doing business for trucking companies,” Ben Banks, president of TCW Inc., said in an emailed statement.“It’s the consumer that ultimately pays for billions in losses. Something has to change.”
The report, titled The Fight Against Cargo Theft – Insights From the Trucking Industry,” was authored by ATRI’s Jeffrey Short and Dan Murray. It determined the freight industry is losing about $6.6 billion annually, more than $18 million a day.
Motor carriers report average annual losses of approximately $520,000, and third-party logistics providers disclose an average of $1.84 million in losses per year.
Researchers interviewed trucking companies that had fallen victim to theft and experts in the field of preventing such crimes. One major discovery — the savvier use by thieves of digital technology to commit their crimes.
“Cargo theft has become more sophisticated in the digital age,” the report said. “Technology has helped bring companies tracking their shipments, but it’s also opened up cargo and customer information to criminals. And now, so many thefts are committed through online scams rather than physical break-ins.”
The report also looked at where these crimes occur most frequently. It is where police resources are most stretched, near major shipping hubs in big cities that cargo theft occurs the most.
The worst-hit states are California, Texas, Illinois and Tennessee, where theft rates were high in Los Angeles, Dallas-Fort Worth, Atlanta and New York. Other cities — among them Chicago, Memphis, Houston, Miami, Savannah and Newark — have also experienced a recent spike in cases.
ATRI recommends that companies bolster their defenses with improved facility security, GPS tracking and limited access for outsiders.
It could be noted, however, that the means of theft differ depending on business type. Among motor carriers, 24% of thefts occur at their own terminals. For logistics companies, more than half (51%) take place at customer collection points and usually include fake drivers or contracts.
To push back, ATRI recommends that states form additional laws around cargo theft and hand more tools to law enforcement officers and companies who can stop and punish thieves.
As thieves become more sophisticated, ATRI cautions that the trucking industry can no longer simply accept this as “the cost of doing business.”
Author Profile
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Ahsan Ali is a technology and business journalist who covers the latest developments in autonomous vehicles and innovative startups.
With a sharp eye for industry trends, he breaks down complex tech stories into clear, engaging insights for general readers.
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