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How to Fight Cargo Theft

How to Fight Cargo Theft

Oct. 31, 2024
Technology trackers can help fight theft which increased 57% last year.

Incidents of cargo theft increased over 57% in 2023, with losses totaling nearly $130 million. 

This figure is likely a conservative estimate due to underreporting and a lack of mandatory theft reporting protocols, according to a according to a recent whitepaper from Becker Logistics.

In the first quarter of 2024, 925 incidents were reported, representing a 46% year-over-year increase and a declared total value of $76 million. 

California, Texas, and Illinois accounted for 61% of all reported theft incidents in 202.

The complexity of global supply chains makes it increasingly difficult for companies to maintain consistent security protocols across every stage of the cargo’s journey. And industries like food and beverage, electronics, and pharmaceuticals are prime targets due to the high resale value and ease of movement of stolen goods.

Economic  Drivers

Several factors have contributed to the rise in cargo theft, including economic pressures, supply chain efficiencies, and advances in technology.  

At the same time, technological advancements have revolutionized supply chains, enabling faster, more efficient transportation of goods. While these technologies have streamlined logistics operations, they have also created opportunities for thieves to exploit weaknesses in tracking systems and circumvent security measures.. For example, GPS jamming devices can be used to disable tracking signals, making it easier for thieves to intercept shipments without detection.. Furthermore, the rise of e-commerce has increased the volume of goods in transit, providing more opportunities for theft.

Organized Crime 

Cargo theft is not limited to opportunistic criminals but is increasingly being orchestrated by wellorganized crime syndicates. These groups use sophisticated tactics, such as identity theft and forgery, to steal cargo by impersonating legitimate companies or carriers. In some cases, criminals create fake websites and email domains to pose as legitimate shipping companies, tricking suppliers into handing over goods.

Once the goods are stolen, they are quickly sold on black markets or repackaged and resold, making recovery difficult. Insider involvement is another growing concern. Criminal networks often have inside knowledge of logistics operations, enabling them to plan thefts with precision. Employees may be bribed or coerced into providing sensitive information, such as delivery schedules or warehouse access codes, which are then used to facilitate theft. This insider knowledge gives criminals a significant advantage, allowing them to execute thefts with minimal risk of detection.

Strategies for Combatting Theft

As theft techniques become more sophisticated, companies need to adopt comprehensive, layered approaches to mitigate these risks. Strategies to combat cargo theft involve leveraging advanced technology, fostering industry-wide collaboration, implementing strong legal frameworks, investing in employee training, and partnering with experienced logistics companies such as third-party logistics providers (3PLs). 

Technologies such as real-time GPS tracking and telematics systems are crucial in preventing cargo theft. These systems allow companies to monitor their shipments in transit, providing continuous visibility and alerting logistics teams to unusual stops, route deviations, or delays that could signal theft attempts. Telematics systems can also monitor driver behavior, helping to reduce the risk of theft through practices like unauthorized stops.

Telematics and GPS systems can be integrated with geo-fencing technology, which sets virtual boundaries around specific geographic areas. When a shipment crosses outside of these predetermined zones, an automatic alert is sent to the logistics team, enabling swift action. This type of proactive monitoring helps companies maintain control over their shipments and respond immediately if a theft is in progress.

Smart locks and electronic seals offer an additional layer of security to prevent cargo theft. Smart locks use digital codes or biometrics for access control, ensuring that only authorized personnel can open containers or trailers. In the event of a breach, the system immediately notifies the logistics team, allowing them to take quick action. These locks also track when and where a trailer or container is accessed, providing valuable data that can be used to identify patterns or insider threats. Electronic seals work similarly, using RFID (Radio-Frequency Identification) technology or Bluetooth to detect unauthorized access. They can be integrated with GPS tracking systems to create a seamless security network that alerts companies when the seal is broken or tampered with during transit..

Dash cams and onboard surveillance systems record video footage inside and around the vehicle, deterring would-be thieves and providing critical evidence if a theft does occur. Some advanced systems use artificial intelligence (AI) to detect suspicious behavior, such as following vehicles, and alert the driver or dispatch team in real time.

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