Cargo thieves were particularly active in the second quarter of the year. According to CargoNet, an organization that monitors and investigates cargo theft, there were 582 recorded theft incidents in the United States and Canada during this period. This marked a substantial 57% increase compared to the same three months in 2022. The total value of stolen cargo exceeded $44 million, with each theft event averaging around $260,703, representing a significant rise of almost $100,000 per incident, as thieves targeted higher-value shipments.
The primary reason for this surge in theft incidents is the continued occurrence of shipment misdirection attacks, as explained by CargoNet. These attacks involve individuals using stolen identities of motor carriers and logistics brokers to gain access to freight and divert it away from its intended destination for theft.
CargoNet also reported a 17% year-over-year increase in thefts of fully loaded conveyances, such as entire trailers. These types of thefts were most prevalent in California, Texas, Florida, and Illinois. Additionally, there was notable theft activity in the regions surrounding New York City and Philadelphia.
However, there was a slight decrease in burglary incidents involving loaded conveyances compared to the previous year, largely attributed to recent law enforcement efforts. Nonetheless, CargoNet emphasized that this type of theft remains a significant concern for shipments, especially high-value ones traveling along the Interstate 40 corridor in Arizona, California, and New Mexico.
CargoNet also highlighted a significant rise in extortion and theft by conversion schemes, particularly orchestrated by organized groups in Illinois and California. These groups primarily target shipments from logistics brokers and impose excessive fees, often unjustified, for reasons such as alleged overweight violations or past penalties incurred by non-affiliated motor carriers. Criminal enforcement in these cases is complex and infrequent, which has emboldened these organized groups, according to CargoNet.
CargoNet also documented a notable increase of 127 fictitious pickups compared to the previous year. These deceptive pickups were most frequently reported in the Los Angeles metropolitan area, but incidents of fictitious pickups occurred throughout the entire continental United States. Some counties faced a significant issue with fictitious pickups due to their local industries, including Maricopa County, Arizona; Travis County, Texas; Chambers County, Texas; and DeKalb County, Georgia.
The groups engaged in fictitious pickups targeted a wide range of product categories during the second quarter of 2023, but their primary focus was on specific types of freight. This notably included alcoholic beverages, non-alcoholic beverages, particularly soda and energy drinks, equipment for solar power energy generation, and various automotive supplies such as auto parts, fluids, oils, and tires.
According to CargoNet, the modus operandi of fictitious cargo pickups relies heavily on subcontracting the shipment to a legitimate motor carrier and then intentionally misdirecting the shipment to a different address. To prevent such fraudulent pickups, logistics brokers and shippers can take preventive measures, such as verifying any bids on shipments by contacting the motor carrier through the contact information on file with the Federal Motor Carrier Safety Administration. They should also ensure that the name of the motor carrier and driver matches the information for whom the shipment was originally intended.
Motor carriers should exercise caution when dealing with new customers who request them to transport a blind shipment to an address that differs from the one specified on the bill of lading, particularly if the destination is a public warehouse or cross-docking facility in California.
CargoNet is steadfast in its commitment to reducing the occurrence of fictitious cargo pickups and providing support to law enforcement agencies in their investigations of these crimes. They urge carriers to promptly report any suspicious activity to law enforcement as soon as it is detected. Carriers should only contact CargoNet at 888-595-2638 after law enforcement has been notified and when there are no immediate threats to life or property. This collaborative approach is essential in combating fictitious cargo pickups and ensuring the safety and security of cargo shipments.
