CargoNet, a product developed by Verisk, has issued a warning about the ongoing surge in criminal activities affecting freight transportation across the continental United States. Recent data reveals that theft reports submitted to CargoNet have reached their second-highest levels of the year. As a result, all professionals involved in supply chain management should be vigilant about the risk of theft during the upcoming Labor Day holiday, according to a statement from CargoNet.

To manage this risk effectively, CargoNet has analyzed theft patterns from the past five Labor Day holidays. During this period, CargoNet documented a total of 156 theft incidents, with an average cargo value of $151,726 per incident. The peak in theft occurred in 2022, with CargoNet recording 44 incidents.

In previous years, cargo thieves primarily targeted valuable shipments containing items such as televisions, computers, and major appliances. These thefts were most prevalent in proximity to major supply chain hubs, including Southern California, Dallas-Fort Worth, Chicago, Memphis, and Atlanta. While no fictitious pickups were reported in the analysis, this type of theft remains a significant concern for professionals this year.

CargoNet has also issued a warning regarding an increased focus on the theft of building materials like shingles, lumber, and power tools, particularly in response to extreme weather events in the Southeast.

One of the most pervasive threats to over-the-road freight transportation during the upcoming holiday is the misdirection of shipments, a form of fictitious pickup. Since November 2022, CargoNet has recorded over 600 instances of shipment misdirection attacks or attempts. In these schemes, attackers impersonate a motor carrier to gain authorization for transporting a shipment. They then hire another motor carrier to deliver the shipment to a location where they can steal it. To conceal their identities and deceive their victims, attackers often impersonate multiple companies. These attacks target a wide range of goods from every state in the continental United States, with a preference for truckload shipments of items like solar panels, energy drinks, alcoholic beverages, motor oil, and consumer electronics.

CargoNet emphasizes that enhanced security protocols can help mitigate these attacks. Shippers are advised to maintain records of information about the motor carrier, driver, and vehicles involved in picking up a shipment for investigative purposes in case of theft. Logistics brokers should also establish robust compliance programs to detect motor carrier identity theft, particularly for commodities that have been frequently targeted.

Noteworthy thefts from previous Labor Day holidays

  • $1,088,983 in seafood stolen from Sioux City, Iowa
  • $800,000 in footwear stolen from Memphis, Tennessee
  • $713,000 in apparel and accessories stolen from Eastvale, California
  • $417,206 in computer electronics stolen from Ontario, California
  • $400,000 in vodka stolen from Jacksonville, Florida

The Labor Day holiday analysis period spans from the Thursday preceding Labor Day through to the Wednesday following Labor Day, encompassing the years 2018 to 2022.