Cargo theft costs U.S. trucking $18 million a day and is ‘unlike anything our industry has faced before,’ logistics exec warns
Highly organized criminal networks have turned cargo theft into a growing threat to the U.S. supply chain, according to Donna Lemm, chief strategy officer at trucking and intermodal company IMC Logistics.
In a Washington Post op-ed on Monday, she cited numerous instances of major heists, including more than $15 million worth of electronics, $1 million of tequila, and $400,000 of Costco lobsters.
“After nearly four decades of working in logistics, I can say with certainty: The scale and sophistication of today’s cargo theft is unlike anything our industry has faced before,” Lemm wrote.
Thieves are exploiting technology and conducting thorough research on their targets before carrying out their schemes, she explained.
For example, they impersonate legitimate freight brokers or customers with spoofed email domains; steal corporate identities; create fraudulent shipping documents; and fabricate counterfeit credentials for their drivers to swipe cargos.
“By the time the theft is discovered, the freight has often vanished into a black market that stretches far beyond state or even national borders,” Lemm added.
She cited American Transportation Research Institute data that showed cargo theft costs the industry as much as $6.6 billion a year, or more than $18 million every day.
Thieves have pulled off stunning jewelry heists as well, including one valued at $100 million. But criminals are also grabbing daily essentials like food and other household goods.
So consumers ultimately end up paying higher prices as the effects ripple through the supply chain, Lemm said.
But it’s not just the U.S. trucking industry that’s suffering from cargo theft. European food giant Nestlé said 413,793 KitKat chocolate bars—about 12 tons—were stolen after leaving a production site in Italy last week for Poland.
“Whilst we appreciate the criminals’ exceptional taste, the fact remains that cargo theft is an escalating issue for businesses of all sizes,” KitKat said in a statement. “With more sophisticated schemes being deployed on a regular basis, we have chosen to go public with our own experience in the hope that it raises awareness of an increasingly common criminal trend.”
The company added that its products can be traced using a unique batch code on individual bars, enabling consumers, retailers, and wholesalers to check whether they have stolen candy.
Similarly, Lemm said, the U.S. trucking industry is investing in advanced GPS tracking, surveillance systems, controlled-access facilities, and employee training to combat cargo theft.
She also called on Congress to pass the Combating Organized Retail Crime Act, which would create a national coordination center that allows law enforcement from all levels to work with the private sector on sharing intelligence, tracking criminal networks, and coordinating investigations.
“When organized criminal groups target shipments, they threaten more than just freight,” Lemm wrote. “They threaten the reliability of the supply chain Americans depend on every day.”
This story was originally featured on Fortune.com