Cargo Theft in America: The Rising Threat to Supply Chain Security

Whether directly or indirectly, virtually all trucking companies are victims of cargo theft, according to Bob Costello, chief economist for the American Trucking Associations. “Either they are victims of crime, or they are spending so much money to defend against being targeted that they are still victims, ” he said.^[ii]

Beyond the financial cost, cargo theft threatens the overall reliability and integrity of the U.S. supply chain, which affects consumers, manufacturers, retailers, the economy and even national security. Combating cargo theft requires an industry-wide approach that relies on increased communication, consistent enforcement and stronger coordination among local, state and federal law enforcement.

Within the U.S., 18 million loads are moved by rail annually.^[i] The Association of American Railroads estimates that over 65,000 thefts occurred in the U.S. in 2024, representing a roughly 40% increase over the prior year.^[iv]

“Prior to 2021, cargo theft was barely on my company’s radar. The isolated cases we encountered involved lone perpetrators stealing relatively small amounts, ” Lemm said. “Virtually every single one of my counterparts across the trucking industry has told me they are experiencing the same challenges.”

While traditional tactics such as pilferage and facility break-ins remain common, criminal groups are employing more advanced, targeted and planned techniques. “The level of sophistication has shifted from petty crime and lone criminals to organized theft groups sabotaging our supply chain, ” Lemm said, adding that OTGs and criminals can empty shipping containers in a matter of minutes.

In many cases, these thefts are a coordinated effort by groups of individuals. Often, they descend on cargo stored within facilities after hours. Despite quick responses from security teams and local law enforcement, the sheer number of people involved in the theft results in a large amount of stolen cargo.

Trucks operating on the road are also at risk. Thieves often track loads and trail drivers, waiting for them to stop to rest or refuel. Criminals are also burglarizing trailers in broad daylight while drivers are stopped at red lights. Supply chain stakeholders may be hesitant to share information about theft, but Lemm said collaboration is crucial in helping to put an end to it.

They are also creating counterfeit driver's licenses and outfitting equipment with fake placards to impersonate a real motor carrier to steal loads and chassis. “The ease with which fraudulent players can piggyback on publicly accessible data is alarming, " Lemm said.

Thieves are also receiving legitimate USDOT and Motor Carrier (MC) numbers from the Federal Motor Carrier Safety Administration (FMCSA), which is responsible for regulating motor carriers. They use their credentials to book loads with the intention of stealing the cargo. FMCSA does not perform an in-depth vetting of carriers before assigning numbers. Instead, they are issued through automated registration systems and applicants self-certify, with minimal upfront validation.

If fraud is detected, some carriers will exit the market and then return with a new MC number, but they remain domiciled at the same address. Some carriers have been known to use addresses that point to vacant lots, and there have been cases where a dozen carriers share the same physical address or IP address, which can be a red flag for potential fraud.

FMCSA currently lacks the authority to impose civil penalties or proactively remove fraudulent actors from its systems. Rep. Todd Young (R-Indiana) is among those who have acknowledged that FMCSA currently does not have "adequate protection” to identify fraudulent actors or remove them from its system. Nor does the agency have the statutory authority to assess civil penalties for violations of its safety or commercial regulations.”^[vi]

“We need a more rigorous, real-time vetting process from the FMCSA that reflects the risks of today’s supply chain.”
– Donna Lemm, Chief Strategy Officer, IMC Logistics

Cargo theft from interstate or foreign shipments can also result in federal charges under 18 U.S.C. § 659, which carries a potential prison sentence of up to 10 years if the value of the stolen property is $1,000 or more. The FBI investigates thefts based on federal laws, not a specific monetary threshold. However, in practice, the FBI and other federal agencies prioritize cases based on their potential harm and their broader national impact, which leaves many thefts unaddressed.

"The lack of a coordinated federal strategy for cargo theft enforcement and prosecution leads to inconsistent responses across jurisdictions and agencies. Organized crime groups are well aware of these enforcement gaps, and they are using them to their advantage, ” Lemm said.

EDUCATION AND ACTION

The Combating Organized Retail Crime Act (CORCA) would establish a coordinated multi-agency response and equip law enforcement with new resources to address the surge of cargo theft incidents happening across the country. The bill (S. 1404), which was authored by Sen. Chuck Grassley (RIowa) and Sen. Catherine Cortez Masto (D-Nevada) in the Senate (S.1404), strengthens legal frameworks, enhances law enforcement capabilities, and promotes collaboration among federal, state and local agencies.

More importantly, it designates the Department of Homeland Security to lead a unified national strategy, helping law enforcement connect the dots in investigating and prosecuting organized theft operations that threaten supply chain security. It has 26 bipartisan Senate cosponsors and is endorsed by 38 state attorneys general. Rep. David Joyce (R-Ohio) and Rep. Susie Lee (DNev.) are leading companion legislation in the House of Representatives (H.R.2853). ^[ix]

Additionally, Sen. Deb Fisher (R-Nebraska) has introduced the Household Goods Consumer Protection Act that would give FMCSA the tools needed to protect consumers from fraud by scammers in the interstate transportation of household goods.

"Cargo theft will continue to metastasize unless Congress recognizes the severity of the problem, law enforcement devotes sufficient time and resources, and the federal government takes a leading role in coordinating enforcement efforts," Lemm said while addressing lawmakers at a Senate hearing. “We know there is a need for data sharing, and that is why these bills are important.”

Thieves frequently track loads, so drivers should arrive at the pickup location fully fueled, fed, rested and with enough legal driving hours to travel for several hours. Once it is time to stop, well-lit, fenced parking areas can help keep cargo safe. However, there are no minimum standards associated with secure yards, so drivers should always be aware of their surroundings.

Lemm emphasized the need for greater collaboration and data sharing across the industry so stakeholders can alert one another to potential threats and coordinate more effective responses.

Ideally, we will find a way to alert other stakeholders of potential thefts and threats and sound a yellow alarm of caution to say, 'We had an attempted breakin, and this is what it looked like. Please be aware, '" she said.

Collaboration with law enforcement is another critical component of cargo theft prevention. One of the most effective strategies is establishing direct communication channels with local, state and federal law enforcement agencies. Additionally, active participation in cargo theft task forces and regional security councils creates structured opportunities to share intelligence on emerging theft trends, tactics and high-risk areas.