CargoNet, a supply chain security company, has reported that theft in the supply chain is currently at its highest levels in over 10 years and shows no signs of slowing down, just ahead of the July Fourth holiday weekend.
In preparation for the upcoming holiday, CargoNet’s analysts examined theft trends over the past five years during the July 4 period to assist supply chain professionals in reducing the risk of theft. Their analysis revealed 119 reported theft events during this period. However, they noted that theft events began to increase above average levels of activity on June 29. The peak of theft events occurred on June 30, but remained elevated until the July 4 holiday itself. CargoNet explained that this is because loaded conveyances are left unattended before the holiday and are only discovered missing once businesses reopen and operations resume.
Among the locations with the highest incidence of theft during the holiday analysis period were San Bernardino County, California; Dallas County, Texas; and Cook County, Illinois. The targeted items most frequently stolen were computers and computer accessories, lumber, and various types of food and beverage products, including sodas, snack foods, and prepared foods. The thefts were evenly split between theft of an entire loaded conveyance and burglary of a loaded conveyance.
While fraud schemes were not a significant concern in previous years, CargoNet has recorded nearly 500 incidents of fraud and fictitious pickups since November 2022. These types of crimes have seen a staggering 503% increase compared to the previous year. CargoNet anticipates that organized crime groups involved in these thefts will continue their activities throughout the holiday weekend. Although these crimes occur throughout the United States, they are most prevalent in Southern California.
Logistics brokers and shippers nationwide should be vigilant, especially when it comes to shipments of alcoholic beverages, energy drinks, solar panels, televisions, automobile fluids and oils, tires, and copper. Fictitious pickups have been most frequently reported in Los Angeles County, California; San Bernardino County, California; Chambers County, Texas; Maricopa County, Arizona; and Orange County, California. CargoNet has recently received reports of increased targeting of shippers in Harris County, Texas; Travis County, Texas; DeKalb County, Georgia; and Henry County, Georgia.
To mitigate the risk of theft, logistics brokers should only send pickup information to verified email addresses that have long-standing associations with the motor carrier authority. In the event of a shipment cancellation, the pickup information for that shipment should be modified. Additionally, logistics brokers should consider imposing limits on the number of shipments a single authority can transport at once, particularly if the authority is new to their network or has suddenly become active after a long period of inactivity.
