Crime is increasingly impacting the freight industry, and theft, in particular, is becoming more frequent and severe.

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According to a recent freight industry report, freight or cargo theft in the U.S. and Canada increased 14% year-over-year in the third quarter of 2024, totaling more than $39 million of cargo in nearly 800 incidents. Some incidents of freight theft can total $1 million in value or more alone.

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Some shippers have started to rely on technology and insurance coverage to fight back.

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Mothership, a tech marketplace that matches freight with nearby carriers for same-day delivery, reported that cargo theft impacted fewer than two out of 100,000 shipments delivered in the U.S. in the last year.

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“Mothership treats freight and cargo shortage very seriously, which is why we are selective about our carriers and take steps so that we have at least 10 times fewer claims than major freight carriers,” said Zach Kidd, a claims specialist at Mothership.

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Kidd also noted that Mothership requires and verifies carriers hold at least $100,000 in cargo liability coverage and offers shippers additional coverage if desired. Mothership’s FreightProtect™ coverage can help protect shippers against cargo theft or shortage, including loss or theft during delivery and associated shipment and re-shipment costs. In 2024, 90% of shippers added FreightProtect™ coverage on their Mothership shipments.

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Shippers can purchase Mothership’s FreightProtect™ coverage to be eligible for 100% reimbursement on the freight’s declared value. The cost starts at 13 cents for every $100 of cargo value, meaning freight with a $1,000 value can cost as little as $1.30 to protect. Mothership says it can resolve claims as quickly as 24 hours once filed.

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Mothership also uses technology, including in-app telematics and machine-learning algorithms, to track shipments and conditions in real-time and find more efficient routes and loads. The improved efficiency of carriers can minimize handling and stops, helping to prevent damage, loss or theft in transit.

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What is freight or cargo theft?

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Freight theft, sometimes called cargo theft, occurs when someone steals freight while it is in transit from its point of origin to its final destination, including any temporary stops along the way.

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Cargo theft might involve entire truckloads or containers or only part of the shipment. It can be hard to spot cargo theft if only a portion of the load is targeted or any shortage or pilferage goes unnoticed by the carrier during transit or the consignee at delivery.

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Cargo theft may include a hijacking when the truck or container is stopped or forced to stop along the route. Other cargo theft methods include a grab-and-run of a trailer’s contents when a truck is slowing down or stopped, the impersonation of a driver to steal entire loads in a fake pickup or burglary when the vehicle is left unattended.

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Organized crime groups or employees with access to shipping schedules and contents might steal cargo. Drivers may purposefully leave loads unsecured or vehicles unattended. Alternatively, employees or security personnel at a dock or warehouse may tip off others so that they have the opportunity to steal the freight.

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“Those committing strategic thefts are incredibly sophisticated. These criminals operate massive organizations; some even have their own call centers and online stores to sell the stolen goods,” a spokesperson for the American Trucking Association told the trade publication The Loadstar.

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What is freight or cargo shortage?

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A freight shortage, sometimes called cargo shortage or cargo loss, happens when there is a discrepancy between the bill of lading’s documented quantity and what arrives at the final destination.

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Cargo shortages might result in incorrect freight measurements during loading or unloading, cargo theft or pilferage, where the loss impacts only a portion or specific, targeted part of a load.

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Other common reasons that might result in less freight delivered than the bill of lading’s documented figures include loss in transit, weather damage, improper handling or natural causes such as evaporating liquid cargo or commodities settling while being delivered.

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How to protect your freight or cargo from theft, shortage and other losses

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Most forms of cargo theft and shortage can be prevented by ensuring loads and vehicles are not unattended or unsecured. Well-established carriers typically protect their vehicles and their freight using air cuff locks, high-security rear door locks and landing gear locks.

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Shippers can protect themselves by researching carriers and companies and working only with familiar carriers or third-party vetting services or marketplaces like Mothership, as opposed to online load boards or one-off, unvetted recommendations. They can take steps like checking a driver’s identity at pickup or dropoff and having strong employee controls at their sites.

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Motor carrier-provided coverage can also help protect a shipper’s business. However, carrier-provided coverage is typically determined by the freight’s density—not its actual value. It may not always reimburse shipment fees, and claims may take up to 120 days to resolve.

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Freight insurance or coverage can protect against losses for diverse types of cargo. However, some commodities typically excluded are cash and financial instruments, luxury goods, live animals or plants, and controlled substances. Some common exclusions include tobacco and tobacco products, pharmaceuticals, narcotic-based substances, cannabis and some cannabis-related substances, nuclear fuel, satellites, firearms, ammunition, explosives, used household goods and personal effects, temperature-controlled products or tech goods, such as mobile phones.

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Methodology

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Mothership analyzed a random sample of about 100,000 shipments delivered through its freight marketplace in the United States from 2023 to 2024. All data was aggregated and anonymized.

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Rick Chen is the director, communications at Mothership. He was previously the head of communications or company spokesperson for Credit Karma, Gusto, Metromile and Blind and has been featured in accounting, HR, insurance and tech trade publications and national outlets like CNBC, Forbes, Lifehacker, Reuters, Rolling Stone and more.