Cargo thieves are attacking the U.S. supply chain at alarming rates

Criminal groups are targeting America’s supply chain from coast to coast by attacking trucks on the road, breaking into warehouses, and stealing items from train cars, as reported by industry experts and law enforcement officials interviewed by CNBC in a six-month investigation. This surge in cargo theft involves exploiting technology meant to enhance supply chain efficiency to steal valuable products, with criminals using altered invoices to divert cargo into their hands by impersonating legitimate company staff. Keith Lewis from Verisk CargoNet, which monitors theft trends in the industry, described this widespread scheme as “low risk and very high reward,” with a nearly 100% return on investment and little fear of getting caught.

Cargo theft incidents rose by 26% in 2024, totaling 3,798 reported thefts with losses exceeding $455 million, although experts believe the actual toll could be closer to $1 billion annually due to underreporting. Train cargo thefts alone increased by about 40% in 2024, with over 65,000 incidents reported. Strategic theft, a sophisticated form of cargo theft, has also been on the rise, representing about one-third of all thefts by the end of 2024.

Tracking down these criminals, especially when they operate globally, is challenging, according to Lewis, who likened the task to investigating identity theft due to the lack of a breadcrumb trail. Verisk CargoNet identified criminal groups disrupting the U.S. supply chain originating from 32 countries.

Jerry Jacobs from Prosponsive Logistics in Atlanta expressed concerns about the lack of deterrence for cargo thieves, noting their easy access to conduct fraudulent activities remotely, such as identity theft and fraudulent booking of shipments. The theft not only impacts companies but also consumers as retail prices may increase due to cargo theft.

Various companies are responding to the rise in cargo theft by investing in technology and specialized personnel to combat the issue. While the industry is taking steps to address the challenges posed by cargo theft, lawmakers at both the federal and state levels are also introducing legislation to combat organized retail crime and protect the supply chain from criminal elements.