Cargo theft has dramatically escalated in recent years. In 2023, incidents surged by an alarming 57% compared to the previous year, with over 1,100 reported thefts and an average loss exceeding half a million dollars per incident, according to CargoNet. This troubling trend has continued into 2024, with a 10% increase in the first quarter alone. Many industry experts are claiming cargo theft is at an all-time high.
Thieves often target high-value electronics, food and beverage products, household goods, and automobiles due to their high resale value. Warehouses, truck stops, and large retail parking lots are the most common sites for cargo thefts with California, Texas, and Florida being the top three targeted states. In many cases, thieves are being just as strategic as the companies they’re stealing from—using technology to access supply chain information and targeting locations with lower security standards.
The financial impact of cargo theft is substantial. Last year, the total loss amounted to a staggering $694,327,811. But this isn’t the only cost logistics companies are facing. In addition to the financial losses, they are grappling with damage to their reputations, increased insurance costs, and replacement costs for equipment caused by these criminal activities.
Addressing cargo theft effectively requires a comprehensive, multi-faceted approach. There are four (at least) essential strategies to help protect your people and your goods from theft.
Connection
Implement advanced, real-time tracking and monitoring systems using connected devices. By leveraging GPS technology, IoT (Internet of Things) sensors, and artificial intelligence (AI) powered analytics, companies can gain unprecedented visibility into the location and condition of their shipments. This not only serves as a deterrent to potential theft but also enables rapid response in the event of a security breach.In practice: All stakeholders have real-time updates on a shipment, and in the event of a breach, sensors would notify them as well as emergency services with the nature of the trigger, the GPS tracking data, and other prevalent information.
Collaboration
Cultivate a culture of security among all stakeholders in your supply chain. Regular training on best practices, such as secure parking and route planning, along with ensuring compliance through automated checklists, can significantly reduce theft risk. Implement an expectation of collaboration among stakeholders to ensure each party is committed to the safety and security of your people and goods.In practice: At the start of each engagement, stakeholders agree on the best practices and communicate processes to all parties involved, including outside carriers. This sets expectations and responsibilities upfront and prevents miscommunication from causing a security threat during shipment.
Communication
Maintain constant and real-time communication to prevent cargo theft. Utilize a shared platform where shippers and carriers can seamlessly exchange information and alerts. Such platforms enable real-time communication, allowing stakeholders to quickly respond to suspicious activities or potential security threats.In practice: If a driver faces delays that affect delivery times, real-time communication allows them to coordinate with the receiver and address potential concerns, whether that be alerting security or updating a new delivery window.
Compliance
Conduct regular audits of security measures and procedures to address vulnerabilities and adhere to industry best practices and regulatory requirements. This includes ensuring your company and cargo have adequate insurance coverage to mitigate financial losses in case of theft. Remember, the goal of compliance is to proactively review existing safeguards and address weaknesses to ensure resiliency against threats to your supply chain.In practice: Regular audits might reveal the need for updated background checks on your drivers, or highlight recurring safety issues. This could lead to enhanced safeguards or additional training requirements.
Many fleet management software platforms offer the tools and insights necessary to implement these strategies alongside your daily checklists and requirements. By harnessing cutting-edge technology and fostering a unified approach, companies can create a safer, more efficient supply chain. Embrace these four keys—connection, collaboration, communication, and compliance—to protect your assets and enhance and add resilience to your entire supply chain network.
