If your business ships freight, you never want to hear the words "cargo" and "theft" in the same sentence. And rightly so! Cargo theft is a hot topic and major concern in the logistics industry and has been on the rise in recent years. In fact, more than $150 million worth of shipments were stolen in the first quarter of 2024 alone.1
Incidents of cargo theft don't just cost you time and money. They can disrupt your business and even erode your customers' trust. So, what should you do if it happens to your business? Don't worry — we have you covered! Let's take a look at the most common freight theft methods and go through the specific steps you should take if your shipments are stolen.
What are the most common types of cargo theft?
As with other criminal activities, thieves are getting more sophisticated. Today's cargo thieves are constantly looking for ways to exploit weaknesses in logistics technology and supply chains. The most common methods cargo thieves currently use include:
Straight theft
Also known as "grab and run," straight theft is when thieves physically steal cargo from loading docks, trucks or storage facilities. This can happen at stops, during vehicle breakdowns or when the cargo is left unattended. Cargo thieves may even use force or deception to access and steal the freight.
Strategic theft
When thieves use sophisticated planning and coordination to target specific high-value or in-demand items, it's called strategic theft. They gather intelligence on shipments, routes and schedules to execute well-planned operations. Organized crime groups or people with inside information about the cargo and its transportation details are often involved.
Pilferage
Sometimes, rather than stealing an entire full truckload (FTL) or less-than truckload (LTL) shipment, cargo thieves will take small quantities of cargo or individual items from larger loads. This type of freight fraud often goes unnoticed or unreported, which can lead to incremental losses over time. Pilferage can occur at various points along the supply chain, including distribution centers, warehouses and during transit. Drivers may not even notice the cargo theft until long after the fact, making it hard to know in which state it occurred and the appropriate law enforcement organization to contact.
Technology-based theft
Like many other criminal pursuits, freight theft has gone high-tech. Cargo thieves are finding more sophisticated ways to target your supply chain and gain an advantage. For instance, they may use electronic "sniffers" to intercept GPS signals, leading them to the exact location of valuable cargo.
Cyber theft
Cyber theft means exploiting vulnerabilities in digital systems and communication channels. Hackers may engage in deceptive tactics such as phishing attacks and data breaches to gain access to shipping data. They then use this information to orchestrate scams like double brokering or fictitious pickups, which means posing as drivers from legitimate carriers to pick up loads and steal them.
What should you do in case of cargo theft?
Even if your business has taken all the possible precautions, you can still be a victim of cargo theft. If this worst-case scenario comes to pass, it's important to respond in a thorough and organized way to make sure you can recoup your losses as much as possible and strengthen your operations and customer relationships.
Advise authorities and your insurance provider ASAP
If you discover your freight has been stolen, report it immediately to the law enforcement agency in the area where the theft occurred.
As it's often difficult for law enforcement to recover stolen freight, it's also vital to get an insurance claim started as quickly as possible. Make sure you follow the insurer's instructions and procedures closely to avoid unnecessary delays in compensation.
Document diligently
Gather all the relevant information, such as the details of the shipment, tracking numbers and any supporting evidence such as photos, security footage and software breach alerts. While you're pulling this information together, make sure your carrier is doing the same.
Keep customers content
Speaking of communication, don't leave your customers out of the loop. After all, they're dealing with the issue of the cargo theft, too. If the stolen freight affects customer orders or commitments, get in touch with them promptly. Provide frequent updates on the situation, any potential delays, and alternative solutions you may have in place. Being transparent in challenging times is crucial to maintaining strong customer relationships and keeping their loyalty.
Learn from the loss
As the dust starts to settle from your initial urgent actions, try and pinpoint any weak links in your supply chain that may have been exploited. This vital self-examination can help you take measures to prevent future thefts of a similar nature.
Seek proactive protection with shipping insurance
Being proactive is always better than being reactive, and that's especially true when it comes to cargo theft. Adding shipping insurance to your valuable shipments can help cover your losses and is always a smart idea. A 3PL can provide insurance and discuss your options.
GlobalTranz: Your Partner and Cargo Protector
Fortifying your supply chain against the threat of cargo theft — and dealing with thefts if they do occur — can be difficult and daunting for even the most prepared business. By partnering with a third-party logistics (3PL) provider like GlobalTranz, you'll have expert support in crafting a shipping strategy that keeps your goods more secure. You'll also enjoy access to top-tier insurance coverage, as well as a dedicated team to take on the burden of the claims process in case of theft or any other challenges that come your way.
We use our decades of experience and knowledge from working with thousands of companies to help you make smart business decisions about freight security and every other aspect of your shipping operations. And if the worst happens, your dedicated GlobalTranz team will be by your side and on your side every step of the way to help make you whole from cargo theft. That kind of peace of mind is absolutely priceless!
Request a complimentary, custom shipping consultation with a GlobalTranz shipping expert today.
1. Riskandinsurance.com. Cargo Thefts Surge to Record Levels in Q1 2024 — May 2024