“Logistics Pulse” is your cheat sheet and to-do list for everything about trade, the supply chain and logistics. We dive deep into the latest news headlines and industry trends and equip you only with actionable insights you can use to improve your business—no matter your industry or role in the supply chain. Presented by Mothership.

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Losses from cargo theft total $455 million in the U.S. alone, and it impacts more than the carriers, shippers and receivers receiving freight. We investigate the most-targeted shippers and freight, the tactics thieves and criminals use when targeting freight to steal, and why cargo theft may be partly to blame for the stubborn inflation and rising grocery and retail prices.

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We share some of the best ways to fight fraud and cargo theft, including how to vet carriers and technology providers and how tech can stop some incidents before they happen. We also explain everything you want to know about how cargo theft insurance works, including the cost of coverage, the claims process and how fast you can get repaid.

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Finally, we examine how logistics professionals secure the supply chain, including which technologies and strategies they use so you can implement them, too.

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Cargo theft: How does it happen, and which freight is stolen the most often?

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Host 1  00:00

All right, everyone. Get ready because today we're going deep into the world of cargo theft. You wanted to learn more about this. And let me tell you, it's a lot more intense than those stories of, like, packages disappearing off porches. 

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Host 2  00:11

It is. 

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Host 1  00:12

This is millions of dollars in losses, intricate scams, and some seriously unexpected items are being targeted by these thieves.

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Host 2  00:21

It really is fascinating. We are actually seeing a surge in cargo theft.

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Host 1  00:25

Really?

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Host 2  00:26

Yeah, it's reaching record levels: just in 2024, estimated losses were nearly half a billion dollars. 

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Ad Read  00:33

Welcome to logistics pulse, sponsored by Mothership, the leading technology platform connecting businesses with fast, reliable freight delivery solutions. For more insights like these, don't forget to subscribe to Logistics Pulse on YouTube, Spotify, or wherever you get your podcasts. 

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Host 1  00:49

Half a billion! That's insane!

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Host 2  00:51

Yeah. 

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Host 1  00:51

I mean, I knew it was a problem, but wow, that is a staggering number.

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Host 2  00:54

That translates to over 3,600 reported thefts, with each one averaging over $202,000 in stolen goods. 

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Host 1  01:02

Wow. So each heist is like a major score for these criminals.

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Host 2  01:05

Yes.

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Host 1  01:06

What do they do? Like, pulling over trucks on the highway, like in the movies?

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Host 2  01:08

Well, there's the classic method, what we call traditional theft.

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Host 1  01:12

Okay.

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Host 2  01:12

This is the direct approach: physically stealing goods from trucks or trains. But there's also a much more insidious tactic on the rise. It's fraud-driven theft. These criminals are using sophisticated techniques to manipulate online systems, essentially redirecting entire shipments to themselves.

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Host 1  01:32

So it's not just about muscle anymore. 

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Host 2  01:34

No. 

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Host 1  01:34

It's brains, too.

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Host 2  01:36

Exactly. And the data shows that this digital approach is really driving the surge in cargo theft. Fraud-driven incidents saw a 1,445% increase in 2024. Compare that to a 20% rise in traditional theft.

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Host 1  01:51

Oh, wow.

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Host 2  01:51

And you can see where the real action is.

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Host 1  01:53

How does that even work?

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Host 2  01:54

One method that's become particularly concerning is double brokering. It's like a bait and switch scheme. These criminals create fake identities and companies and set up elaborate online profiles. They'll bid on loads and accept shipments, just like a legitimate carrier, then vanish with the cargo, leaving the real customer empty handed.

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Host 1  02:14

They're like ghosts in the system making off with these shipments?

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Host 2  02:17

Precisely. And it's incredibly effective.

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Host 1  02:19

That's pretty clever, if you can even call it that.

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Host 2  02:22

Right. And this tactic is causing cargo theft to spread beyond the usual hot spots. We're seeing significant spikes in places like Arizona and Nevada, which historically haven't been major targets. 

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Host 1  02:34

So this is a problem that's evolving and spreading. I'm guessing this isn't just about some random items going missing. What are the thieves after these days?

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Host 2  02:42

You'd be surprised at what's considered hot property on the black market these days. In 2023, things like engine oils and energy drinks were popular targets.

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Host 1  02:52

Okay, interesting. 

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Host 2  02:53

But 2024 saw a shift to some pretty unexpected items.

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Host 1  02:57

All right, you got me hooked. What are we talking?

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Host 2  02:59

Avocados and nuts for starters.

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Host 1  03:01

Avocados?

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Host 2  03:02

Apparently, healthy snacks are in high demand, even in the criminal underworld.

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Host 1  03:07

Wow!

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Host 2  03:08

Protein powder has also become a popular target, along with something even more surprising, cryptocurrency mining hardware.

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Host 1  03:16

Avocados?

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Host 2  03:17

Yeah.

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Host 1  03:18

Protein powder?

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Host 2  03:19

Yeah.

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Host 1  03:19

Seriously?

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Host 2  03:20

Yeah!

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Host 1  03:21

That's wild. Who knew those things were so valuable to thieves?

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Host 2  03:24

It all comes down to supply and demand. The items are in high demand, relatively easy to move.

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Host 1  03:30

Right.

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Host 2  03:30

And difficult to trace. It makes them perfect targets for these organized crime rings.

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Host 1  03:35

Okay, so we're not just talking about petty theft here.

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Host 2  03:37

No.

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Host 1  03:37

This is organized crime with a whole new playbook. But how does this impact us? Sure, it's a shame if someone's avocado toast is delayed.

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Host 2  03:44

Right.

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Host 1  03:44

Is there, like, a bigger consequence?

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Host 2  03:46

It's a lot more serious than just delayed avocado toast. This surge in cargo theft has a ripple effect, ultimately hitting you, the listener, right in the wallet.

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Host 1  03:55

You got my attention. Explain.

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Host 2  03:56

Think about it. These stolen goods represent huge losses for businesses, and those losses inevitably get passed down the supply chain, resulting in increased prices on consumer goods. So yes, those stolen avocados and protein powder actually contribute to the rising costs you see at the grocery store.

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Host 1  04:15

So every time I see those avocados creeping up in price, I should be picturing a band of high-tech criminals making off with a truckload?

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Host 2  04:24

Well, maybe not literally, but it does illustrate how interconnected our economy is and how these seemingly distant crimes can have tangible consequences for all of us.

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Steps you can take to prevent cargo theft and freight fraud

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Host 1  04:36

That's a sobering thought. It's easy to dismiss these things as just statistics, but they have real world implications. So what's being done to combat this? Is anyone fighting back against these cargo pirates?

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Host 2  04:47

There are efforts underway, but it's a complex challenge. One proposal gaining traction is the Safeguarding Our Supply Chains Act. This aims to improve communication and coordination between federal, state and local law enforcement agencies.

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Host 1  05:01

Okay.

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Host 2  05:02

Creating a more unified front against organized cargo theft rings.

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Host 1  05:06

That sounds promising, a coordinated effort makes sense. Are there any hurdles to getting this act passed?

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Host 2  05:11

There are concerns about resources and potential disruptions. Some argue that federal resources for fighting cargo theft are already stretched thin, and there's also the worry that stricter security measures could slow down the supply chain, which could have its own set of negative consequences for the economy.

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Host 1  05:28

So it's a delicate balancing act. Increased security is needed, but it can't come at the cost of crippling the very system we're trying to protect.

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Host 2  05:35

Yeah, exactly. It's a complex problem with no easy solutions, but by understanding the scope of the issue and the challenges involved, we can start to have more informed discussions about how to address it.

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Host 1  05:46

The first line of defense—got to be carrier vetting.

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Host 2  05:49

Yeah, for sure.

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Host 1  05:50

I mean, it's like choosing the right crew for your ship. You want to make sure that you're working with somebody who's reputable.

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Host 2  05:55

Absolutely.

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Host 1  05:56

Who's reliable, who's going to get your shipment where it needs to go.

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Host 2  05:59

Safe and sound.

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Host 1  06:00

Safe and sound.

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Host 2  06:00

Yeah.

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Host 1  06:00

So everybody's heard of checking a driver's license, right?

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Host 2  06:03

Right.

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Host 1  06:03

But in this world, it's all about the DOT and MC numbers.

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Host 2  06:09

Yeah, those are key.

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Host 1  06:10

Department of Transportation. Motor carrier numbers.

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Host 2  06:14

Those are the credentials that a legitimate carrier needs to have.

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Host 1  06:18

You've got to make sure they're legit.

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Host 2  06:19

Absolutely.

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Host 1  06:20

But, you know, what else do you look for in a background check?

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Host 2  06:22

Well, you know, it's, it's really like a detective story. You're looking for clues. You know, frequent changes in operating authority.

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Host 1  06:30

Okay.

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Host 2  06:30

Ties to past theft incidents. Those are big red flags. You're connecting the dots, looking for patterns that might indicate a higher risk.

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Host 1  06:39

So it's not just about the numbers.

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Host 2  06:41

No, it's the whole picture.

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Host 1  06:42

It's the story behind the numbers.

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Host 2  06:43

Absolutely, and this is where awareness can really make a difference. If you're involved in shipping, there are some telltale signs that you might be dealing with a potential cargo thief.

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Host 1  06:54

Like what?

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Host 2  06:55

One of the biggest red flags is inconsistent information. If a carrier or broker is being evasive, providing contradictory details or pressuring you into quick decisions, that's a sign to proceed with extreme caution.

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Host 1  07:08

So trust your gut. If something feels off, it probably is.

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Host 2  07:10

Exactly. Another thing to watch out for is unusual bidding patterns. If a bid seems too good to be true, it probably is. Criminals often use low prices to lure in victims and secure shipments.

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Host 1  07:22

So low ball offers are a big red flag.

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Host 2  07:24

Yes

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Host 1  07:25

That makes sense. What else should people be on the lookout for?

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Host 2  07:27

Pay close attention to a company's online presence, how it matches up with their actual operations. Say, a company boasts a large fleet of trucks on their website, but the site itself looks amateurish or is missing basic information, that's a sign to dig a little deeper. Does their online persona match their real-world presence?

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Host 1  07:48

So basically, do your homework.

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Host 2  07:50

Yes.

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Host 1  07:51

Don't just take things at face value.

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Host 2  07:53

Exactly. It's like online dating for cargo. You've got to swipe right on the trustworthy one. Verify identities, check references, and don't hesitate to reach out to industry associations to confirm a company's legitimacy.

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Host 1  08:05

It's all about due diligence. You really need to vet these potential partners carefully.

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Host 2  08:11

Right.

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Host 1  08:12

And if something feels off, trust your instincts.

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Host 2  08:15

Absolutely. Remember, a little extra caution upfront can save you a lot of headaches down the line.

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Host 1  08:20

That's great advice for businesses involved in shipping. But, is there anything we as individual consumers can do to protect ourselves from the impact of cargo theft, or are we just along for the ride?

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Host 2  08:32

You're not just along for the ride. You have a lot more power than you might realize. Be cautious about buying heavily discounted goods from unfamiliar sources. If a deal seems too good to be true, it probably is. Those super cheap electronics or designer bags could be stolen goods.

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Host 1  08:50

Oh, that's a good point. I'll definitely think twice before clicking Buy Now on that suspiciously cheap pair of shoes next time.

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Host 2  08:58

It's always wise to err on the side of caution. Remember: You're not just buying a product. You're supporting a business, and by choosing reputable sources, you're contributing to a safer and more secure marketplace for everyone.

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Host 1  09:12

And being aware of the potential consequences of our actions, we have a lot more power than we realize.

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Host 2  09:17

Exactly. Every purchase we make sends a message to the market. By supporting businesses that prioritize security and ethical practices, we can create a ripple effect that ultimately benefits everyone.

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Host 1  09:27

So, it's more than just getting a good deal. It's about being responsible consumers.

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Host 2  09:32

Right.

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Host 1  09:32

This conversation has really opened my eyes.

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Host 2  09:34

Good.

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Host 1  09:35

I started thinking about cargo theft as just another crime statistic, but now I see it is a much bigger issue.

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Host 2  09:41

Yeah, I'm glad to hear that. It's easy to get caught up in the sensational headlines and focus on the stolen avocados and protein power, but the real story is much deeper and more nuanced.

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Host 1  09:51

Yes.

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Host 2  09:52

It's about understanding the forces at play, the motivations of the criminals and the ripple effects these crimes have on our communities and our world.

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Host 1  10:00

You're absolutely right. We can't just sit back and expect someone else to solve this problem. We all have a role to play.

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Host 2  10:05

We need to work together, businesses, consumers, law enforcement and policy makers, to create a more secure and resilient supply chain.

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How technology can help prevent cargo theft and freight fraud

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Host 1  10:14

Okay, so you've vetted your carrier, your shipment is on the move, but you're still a little on edge.

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Host 2  10:20

I get it.

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Host 1  10:21

I mean, it's a lot of money.

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Host 2  10:22

Yeah

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Host 1  10:22

It's a lot on the line.

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Host 2  10:23

For sure. 

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Host 1  10:24

This is where technology steps in.

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Host 2  10:26

That's right.

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Host 1  10:27

Things get really interesting.

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Host 2  10:28

It's amazing what's out there now.

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Host 1  10:30

Right. We're talking real-time GPS tracking; you can actually watch your shipment move across thecountry.

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Host 2  10:37

Like a little dot on a map. It's fascinating! 

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Host 1  10:40

But it goes even further.

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Host 2  10:41

Oh yeah.

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Host 1  10:42

Geo-fencing. Explain that to me.  It's like a virtual trip wire.

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Host 2  10:45

Yes, exactly. It's like, you set up a virtual perimeter around your shipment's route, and if the truck deviates even slightly.

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Host 1  10:54

Yeah?

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Host 2  10:54

Boom.

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Host 1  10:55

What happens?

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Host 2  10:55

Alerts go out.

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Host 1  10:56

Really?

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Host 2  10:57

Oh yeah.

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Host 1  10:57

So you know right away?

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Host 2  10:59

Instantly, if something's amiss.

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Host 1  11:01

That's incredible. So, geo-fencing adds that extra layer of security.

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Host 2  11:06

For sure.

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Host 1  11:06

But as you know, technology isn't foolproof.

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Host 2  11:08

That's true. That's the million-dollar question. While it might be impossible to eliminate crime entirely

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Host 1  11:14

Right.

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Host 2  11:14

We can certainly make it much more difficult and less profitable for criminals.

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Host 1  11:19

Okay.

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Host 2  11:20

A more secure supply chain could involve multiple layers of protection, starting with robust security protocols at every stage of the journey, from manufacturing to transportation to warehousing to retail.

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Host 1  11:33

Okay, so it's like a fortress?

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Host 2  11:35

Yes.

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Host 1  11:35

With multiple layers of defense.

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Host 2  11:37

Right.

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Host 1  11:38

But fortresses can be breached, right?

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Host 2  11:39

Of course, but the goal is to make it as difficult as possible for criminals to penetrate those defenses, and that's where technology comes in. We're seeing incredible advancements in tracking and monitoring systems. It's a constant arms race.

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Host 1  11:52

Right. 

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Host 2  11:52

But we're making progress, and the more we invest in these technologies and strategies, the more secure our supply chains will become.

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Host 1  11:59

But technology alone isn't enough, right?

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Host 2  12:01

Right.

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Host 1  12:01

We still need human intelligence, awareness and good old fashioned common sense.

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Host 2  12:07

Technology is a powerful tool, but it's only as effective as the people using it. We need trained personnel, vigilant employees and informed consumers who are aware of the risks and willing to take steps to protect themselves.

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How does freight insurance work? Does freight insurance cover cargo theft?

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Host 1  12:21

So what happens when things go wrong?

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Host 2  12:23

Well, that's where insurance comes in.

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Host 1  12:24

Right.

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Host 2  12:25

Like a safety net.

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Host 1  12:26

Yeah.

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Host 2  12:26

For your cargo.

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Host 1  12:27

Okay, so the FMCSA.

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Host 2  12:29

Yeah?

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Host 1  12:29

The Federal Motor Carrier Safety Administration, they mandate a minimum level of liability coverage.

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Host 2  12:36

Right.

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Host 1  12:37

For carriers.

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Host 2  12:37

Right, but a lot of shippers, they're not satisfied with just the bare minimum.

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Host 1  12:43

Right. 

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Host 2  12:44

They require higher coverage levels because cargo theft can be financially devastating, especially for smaller businesses.

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Host 1  12:52

Right.

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Host 2  12:52

So it's about protecting their investment, and making sure they can recover if the worst happens.

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Host 1  12:58

So it's like peace of mind?

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Host 2  13:00

Right. Exactly. Peace of mind.

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Host 1  13:01

Okay, and this is where new options like Mothership's Freight Protect.

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Host 2  13:06

Oh yeah.

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Host 1  13:06

That's changing the game.

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Host 2  13:07

It is.

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Host 1  13:07

You get full-value coverage, on demand.

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Host 2  13:10

It's great!

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Host 1  13:11

Making it more accessible, affordable, especially for those smaller businesses—helps ensure they can bounce back.

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Ad Read  13:17

Add Freight Protect to your next shipment with Mothership. It offers up to 100% reimbursement on the declared value of your freight, and claims can get approved in as little as 24 hours.

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Host 1  13:28

So it's a combination of factors. It's about creating a culture of security that permeates every level of the supply chain.

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Host 2  13:34

That's a great way to summarize it. It's a holistic approach that recognizes the interconnectedness of the system and the need for shared responsibility.

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Host 1  13:43

Well, this has been an incredibly insightful conversation. I've learned so much about the complexities of cargo theft and the importance of taking action. What's the one thing you wish everyone knew about cargo theft?

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The consequences and impacts of cargo theft and freight fraud

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Host 2  13:55

That's a great question. I think the one thing I wish everyone understood is that cargo theft is not a victimless crime. It has real consequences for individuals, businesses and our economy as a whole. It's not just about stolen goods. It's about lost jobs, increased costs and a sense of insecurity, and it's something we all need to take seriously. We often focus on that, like, immediate loss of goods, but the ripple effects of cargo theft, they can be felt really far and wide.

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Host 1  14:24

It's like a hidden tax we all end up paying.

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Host 2  14:26

Yeah.

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Host 1  14:26

But it sounds like there's no, like, silver bullet solution. It's not like we can just put GPS trackers on every avocado or something.

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Host 2  14:32

While GPS tracking can be an effective tool, you're right, it's not a one-size-fits-all solution. What's really needed is technology, human intelligence and collaboration across all levels of the supply chain. As we wrap up, I'm left wondering, are we destined to be in a perpetual arms race with these criminals?

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Host 1  14:50

That's a great question, and honestly, no one has a crystal ball.

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Host 2  14:53

Right.

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Host 1  14:54

But I do believe that we need to anticipate emerging threats and develop solutions that are agile,so it's not about building impenetrable fortresses, but rather, creating systems that can adapt to the ever changing tactics of the criminals. It's not about surrendering to the inevitability of cargo theft, but rather empowering ourselves with the knowledge and tools to fight back effectively.

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Host 2  15:17

Absolutely, we can't afford to be complacent. Cargo theft is a global problem.

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Host 1  15:22

I remember when I first started researching this topic, I was picturing like high-tech gadgets and elaborate heists, but what's really resonated with me are the human stories.

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Host 2  15:29

Yeah.

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Host 1  15:29

The truck drivers, the business owners.

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Host 2  15:31

It's easy to get lost in the statistics and the technology, but we can't forget that there are real peoplebehind these incidents, their livelihoods, their sense of security, their very well-being are affected.

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Host 1  15:44

This has been incredible, and I know our listeners will appreciate your insights. Thank you so much for joining us and sharing. It's been a fascinating conversation, and I hope it inspires everyone to take action.

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Host 2  15:53

Hopefully!

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Host 1  15:54

And to our listeners, thank you for joining us on this journey into the world of cargo theft.

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Ad Read  15:59

For more insights like these, don't forget to subscribe to Logistics Pulse on YouTube, Spotify or wherever you get your podcasts.