Unreported Cargo Theft Incidents Make It Difficult to Grasp Scope

Thieves target specific states and products in the cargo logistics network.

Cargo Theft

From robbers attacking merchants on trading roads to pirates seizing ships at sea and even bandits on horseback robbing stage coaches, cargo theft has been around for centuries. Fast forward to today: trucks have replaced horse-drawn wagons, and today’s cargo theft perpetrators are often part of international crime syndicates. The global economic crisis has increased demand for black-market goods.

Today’s major cargo thieves in the United States are sophisticated, organized and generally not home grown. Thieves are often recruited and trained by Cuban crime syndicates, then sent to Florida to establish their operations. In California, violent gangs such as MS-13 (also known as Mara Salvatrucha) have been known to finance their activities through cargo crime.

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In Canada, the Chinese Triad crime organization is becoming a major player in the cargo theft arena. There are even concerns that money generated by various U.S. organized cargo theft rings is being funneled to terrorist organizations, such as Al-Qaeda and Hezbollah, to fund future attacks against the United States.

Looking at Cargo Theft Statistics

Statistics vary, but it is generally agreed that cargo theft is a $15- to $30 billion-dollar problem per year in the United States. Exact numbers are impossible to determine in that many cargo theft incidents go unreported. The most recent statistics available continue to be sobering.

FreightWatch International recorded a total of 193 incidents of cargo theft in the United States during the third quarter of 2016. The average value per theft was $120,536. Third-quarter incidents were up 14 percent from the second quarter of 2016, but the average dollar value fell by 26 percent. Compared to third-quarter theft statistics from 2015, incidents rose by 7 percent, while values dropped 38 percent.

Numbers released by cargo theft and recovery service provider CargoNet differ slightly. They noted 447 incidents in the third quarter, a 2 percent increase over 2015. Of these incidents, 309 involved theft of a motor vehicle, 201 incidents involved theft of cargo and 35 incidents were perpetrated by fraud. CargoNet recorded $23.7 million in cargo stolen in the third quarter of 2016, down $8.2 million from 2015. They report that the average cargo theft was $118,000, down from $144,000 in 2015. Average third quarter statistics show that cargo theft in the United States and Canada dropped 9 percent from 2015.

California was listed by FreightWatch as the worst state for cargo theft with 38 percent of the total incidents. For the third quarter of 2016, California saw an increase of 11 percent versus the second quarter–and a whopping 95% increase over the third quarter of 2015. Texas came in second with 16 percent of the total cargo thefts. Florida was ranked third.

Electronics continued to be the costliest commodity loss but dropped from $14.5 million in the third quarter of 2015 to $7.8 million in 2016. Household items were the second-costliest loss at $4.6 million, a 138 percent increase from 2015. Food and beverage commodities remained the most-stolen category but fell 22 percent from 2015 to 2016.

Incidents involving the theft of full truckloads continued as the most prevalent method of cargo theft in the third quarter of 2016, representing 78 percent of all reported thefts with an average loss of $120,298. Facility thefts saw a 98 percent increase in theft rate and a 266 percent increase in theft value. Warehouse locations remained the most common place for cargo theft.

Because so many cases of cargo theft go unreported, quoted statistics don’t match exactly. But it is universally agreed that cargo theft is a major economic threat, particularly to the retail industry. And it’s growing.

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