Mitigating Risk in the Growing Battle Against Cargo Theft

This post is part of a series sponsored by IAT Insurance Group.

Cargo theft remains a prominent threat to the transportation industry. In one high-profile case in 2022, three Florida men stole approximately $9 million worth of beef and pork from refrigerated trucks that had left meatpacking plants in the Midwest and Great Plains over the course of a year.

In the second half of 2022, reports of cargo theft and fraud rose 27% year-over-year.[1] Parking lots and truck stops are the most common location for cargo theft incidents but secured yards are not immune from cargo theft.¹ Although household goods and food products remain common targets, higher-value goods, such as vehicles, electronics and pharmaceuticals also are frequently targeted.[2]

The four most common cargo theft scenarios include:

• Red zones: Areas with ports and major interstate junctions continue to be hotspots for criminals, including California, Texas, Georgia, Florida and Illinois.¹
• Hijacking: Criminals are getting bolder, taking opportunities to steal cargo and even hijacking equipment at truck stops, rest areas and fuel islands when drivers are refueling, using the facilities and while taking an hours of service (HOS) break.
• Inside jobs: An employee with detailed knowledge of the cargo along with the origin and destination points knows when and where a high-value shipment may be vulnerable and have tipped off an outsider on those details in order to facilitate a theft.
• Organized crime: Organized groups of criminals have sophisticated systems in place to accomplish cargo heists, as demonstrated in the beef and pork heists mentioned above.

As cargo theft continues to grow and evolve, companies can implement defensive measures to mitigate losses, including the following:

Only a small percentage of cargo thieves are caught and prosecuted. And only a small percentage of stolen cargo is ever recovered. Many law enforcement teams do not have the manpower to devote to these types of cases over higher-profile crimes. Taking steps to make loads less attractive and more difficult to steal, can help to reduce cargo theft.

For more information on defending against the threat of cargo theft, contact IAT.

Have a question on how to mitigate risk? Email losscontroldirect@iatinsurance.com for a chance to see your question answered in a future blog.

[1] Verisk “Winter Holiday Cargo Theft Trends and Security Best Practices 2022,” December 16, 2022.

[2] Business Insurance “Cargo losses escalate as thieves target cars, electronics,” May 31, 2022.