Freight thefts jump 46% to start 2024, CargoNet reports
CargoNet estimates the total value of goods stolen during Q1 2024 could be as high as $154.6M.
Theft and fraud targeting logistic and transportation industries hit a record during the first quarter of 2024, according to CargoNet, which reported a 46% increase in these incidents compared with the same period the year prior and a 10% increase compared with the previous quarter. In total, there were 925 incidents during Q1 2024.
During the first quarter, the average value of a stolen shipment was $281,757 and the total declared loss value reached $76 million. CargoNet estimates that the total value of goods stolen during this period could be as high as $154.6 million, which includes estimates for incidents that did not have a declared value.
A few forces are driving an increase in these crimes, according to Keith Lewis, vice president of operations at CargoNet, who explained that bad actors have developed more efficient ways to perpetrate thefts.
For example, he said thieves will now buy out existing trucking companies and use its motor carrier (MC) registration details and history to gain a victim’s trust.
“They buy the company because it’s in business and has some credibility. Maybe they’ve hauled loads for this broker before and the broker is used to dealing with them,” Lewis told PropertyCasualty360. “They (the thieves) will haul one or two loads to get the shipper comfortable and then they will sting them for a series of loads.”
When it comes to the total cost of stolen freight, Lewis explained the number is increasing and largely tied to consumers’ spending habits.
“We are seeing a lot of solar panels, energy drinks and high-end electronics being stolen now,” he said. “Whatever the consumer is buying, that’s what they’re stealing.”
CargoNet reported that food and beverages and household goods were the most frequently targeted goods during Q1 2024.
While most states saw increases in cargo thefts, Illinois (126%), California (72%) and Texas (22%) had the most dramatic increases.
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