The American Trucking Associations’ (ATA) chief economist, Bob Costello, recently spoke at a House Transportation & Infrastructure Subcommittee meeting. The discussion highlighted cargo theft’s severe effects on the trucking sector, the wider supply chain, and consumer costs.
A Shared Struggle for Trucking Companies
“Directly or indirectly, virtually all trucking companies are victims of cargo theft. Either they are victims of crime, or they are spending so much money to defend against being targeted that they are still victims,” said Costello. “ATA looks forward to working with committee members to safeguard the entire supply chain, including trucking, to protect businesses and their employees as well as lower costs for consumers.”
Congress has recurringly focused on cargo theft, with ATA stepping in as an essential voice twice in under two months.
The Staggering Cost of Cargo Theft
According to ATA data, freight-related crimes cost the supply chain up to $35 billion annually, indirectly driving up consumer prices. Since early 2021, “strategic theft” has skyrocketed by 1,500%, with the average value of stolen shipments exceeding $200,000 per incident.
Cargo theft takes various forms, from breaking into parked tractor-trailers and double-brokering fraud to cyberattacks and long-term pilfering. Criminals increasingly use advanced digital tactics to outwit carriers.
During testimony earlier this year, Adam Blanchard, an ATA member, shared a firsthand account of cargo theft. Blanchard’s company fell victim to identity theft and related fraud. Despite reporting the crimes to insurance providers, local law enforcement agencies, the FBI, and the Department of Homeland Security, little actionable support was provided.
A Complex Crime Demanding Federal Action
“Due to the complex, multi-jurisdictional nature of these crimes, only the federal government has the resources and technical capabilities to take down organized theft groups,” ATA stated in a press release.
Recognizing this challenge, ATA recently endorsed the Combating Organized Retail Crime Act, designed to establish a unified federal response to these transnational crimes. ATA emphasized that organized cargo theft rings often operate across state and national boundaries, which demands a cohesive, large-scale federal strategy.
As part of its 2024 agenda, ATA has also prioritized security measures, including the fight against cargo theft and cybercrime, as essential pillars supporting the trucking industry and protecting businesses and consumers.
Cargo theft is no longer just a trucking issue; it’s a supply chain-wide crisis with profound national economic implications. Addressing this threat is crucial for businesses and lawmakers alike to ensure a more stable, secure, and cost-efficient flow of goods.
Source: The Trucker
Image Source: ATA
