'Tis the season for joyful gatherings, twinkling lights, and unfortunately, cargo theft. During the holiday season, the allure of valuable goods being transported across the country becomes too irresistible to thieves.
Cargo theft is a significant issue in the logistics and supply chain industries, causing billions of dollars in losses annually. According to CargoNet, there were some 2,900 cargo theft incidents reported in 2023, up more than 57% from 2022. California, Texas, and Florida are cargo theft hot spots. With the growth of e-commerce and the increasing demand for goods worldwide, the risk of cargo theft is an ever-present concern for businesses, particularly during peak times like the holiday season.
Appliances, furniture, cleaning supplies and other household commodities are the cargoes most targeted by thieves; electronics, including televisions and computers, are a close second, says CargoNet data.
In recent years, cargo theft has become more sophisticated, with organized crime groups employing advanced strategies to steal goods effectively. A California Highway Patrol Border Division Cargo Theft Interdiction Program, a special task force dedicated to cargo theft, seized roughly $3.7 million worth of stolen beauty products near the southern border. Officials estimated the value of the recovered goods at $3.67 million. Similarly, in Grapevine, Texas, police arrested several suspects in a cargo theft ring operation that targeted warehouses with high-end electronics across the Dallas-Fort Worth area.
Why the holiday season uptick?
There are several reasons why cargo theft tends to spike before the end of the year.
As the holiday season approaches, the demand for goods such as electronics, toys, clothing, and food products surges. Retailers stock up on inventory to prepare for the holiday rush, resulting in a dramatic increase in the volume of cargo being transported. This influx creates more opportunities for thieves to intercept shipments, as more trucks and containers are on the road, sometimes with relaxed security protocols due to the need for fast delivery.
During the holidays, high-value items like electronics, jewelry, and luxury goods are in high demand, attracting thieves looking to capitalize on the valuable cargo. Cargo thieves are well aware of the types of products being shipped during this time, and they often target these goods for quick resale. The profit potential for these high-demand items makes them particularly attractive to criminals, who can sell the items on the black market at a high price.
With this being one of the busiest times of the year, logistics companies and drivers are under pressure to meet tight deadlines. This rush can lead to lapses in security practices as companies prioritize speed over precaution. For example, truck drivers may be more likely to leave vehicles unattended during breaks, or warehouses may skip routine checks to keep up with demand. In some cases, warehouse become so full, operators are forced to store cargo outside. These lapses create vulnerabilities that thieves are ready to exploit.
To keep up with demand, companies may need to use additional warehouses or routes that are not as secure as their usual facilities. These temporary storage solutions and alternate routes may lack the advanced security infrastructure required to protect against theft. Opportunistic thieves often scout for these “soft targets” that lack the same level of surveillance, security personnel, or monitoring systems as more established facilities.
This time of year often brings a spike in the hiring of temporary workers to meet the demands of increased shipping volumes. While this extra labor is necessary, it can also pose a security risk. Temporary workers may not have the same level of training or loyalty as full-time employees, and some may even be tempted to participate in or aid cargo theft. High turnover rates and lack of background checks on temporary staff can make it challenging for companies to maintain stringent security measures.
Pulling off the heist
Cargo theft can occur at various points along the supply chain, and thieves employ different methods depending on the situation.
In some cases, thieves resort to hijacking trucks or containers while they’re in transit. This method often involves armed criminals forcing drivers to stop and surrender their cargo. These incidents can be highly dangerous and often occur on isolated or poorly monitored routes.
Insider involvement is a common factor in many cargo theft cases, with employees or temporary workers providing information on shipment schedules, security protocols, and cargo value. Social engineering tactics, such as posing as legitimate employees or security personnel, are also used to gain access to valuable information or cargo.
Strategic placement cargo theft is a growing trend. It involves criminals infiltrating the logistics chain by placing accomplices in low-level positions within the supply chain. These accomplices monitor shipment movements and report them to external accomplices who then plan and execute the theft. Strategic placement can be challenging to detect and may result in significant thefts.
Recently, two truckloads of more than 24,000 bottles of Guy Fieri and Sammy Hagar’s Santo tequila, valued at $1 million in total retail value, were diverted and stolen by an organized crime effort. They were illegally double brokered to different carriers who transferred the tequila to their trucks after crossing the border from Mexico to Texas. An investigation is currently underway.
Staging areas, warehouses, and parking lots are prime targets for cargo thieves, especially during high-traffic periods. Thieves often break into trailers or containers while they’re temporarily parked, taking advantage of the lack of surveillance or on-site security. In some cases, thieves will even attach tracking devices to trucks and follow them until they stop in a vulnerable location.
As the holiday season approaches, the demand for goods such as electronics, toys, clothing, and food products surges. Retailers stock up on inventory to prepare for the holiday rush, resulting in a dramatic increase in the volume of cargo being transported.
Cargo theft prevention
Preventing cargo theft requires a multi-layered approach that includes advanced technology, strategic planning, and employee awareness. Here are some effective strategies:
- Installing central alarms: Central alarms provide real-time monitoring and alerts for any unauthorized access to a facility with vulnerable cargo. They can also provide valuable data and evidence for investigating any attempted or actual theft, aiding in the recovery of stolen goods and the apprehension of criminals.
- Implementing GPS tracking and monitoring systems: GPS tracking enables real-time monitoring of shipments, allowing companies to detect unusual patterns or detours.
- Enhanced employee screening and training: Comprehensive background checks and thorough training are essential, especially when hiring temporary workers for the holiday season. Employees should be educated on security best practices and taught how to recognize suspicious behavior or potential security threats.
- Partnering with law enforcement and industry associations: Collaboration with law enforcement and cargo security organizations can provide valuable intelligence on theft trends and high-risk areas.
- Using secure facilities and routes: Companies should avoid using temporary storage locations or routes that lack proper security infrastructure. If these are necessary, additional security measures, such as security guards or surveillance cameras, should be implemented to reduce the risk of theft.
Holiday crime stopping
Cargo theft is a complex and costly problem that intensifies before the holiday season. The consequences of cargo theft are significant, impacting not only the companies that own and transport the goods but also the entire supply chain ecosystem.
Understanding the reasons behind the seasonal spike in cargo theft, including the pressure on logistics companies, high-value shipments, and the vulnerabilities in the supply chain, can help businesses better prepare and safeguard their shipments.
Through enhanced security measures, employee training, and collaboration with law enforcement, companies can significantly reduce their risk of falling victim to cargo theft, ensuring that goods reach their destinations safely and on time.
The financial losses associated with stolen goods can include the direct cost of replacing the items, lost revenue, and the costs associated with delayed shipments. In addition, cargo theft disrupts customer relationships as companies struggle to fulfill orders on time. Cargo insurance provides a valuable safety net in recovering from cargo theft.
Ultimately, proactive planning and stringent security protocols are essential in combating cargo theft, especially during high-demand periods like the holidays when businesses and consumers alike depend on reliable, secure logistics services.
