Report: Cargo Theft Soars 49 Percent in First Half of 2024
Freight hubs and major cities across North America are witnessing an alarming surge in cargo theft, with incidents skyrocketing by 49% in the first half of 2024 compared to the same period last year, Overhaul's United States & Canada H1 2024 Cargo Theft Report.
The surge in theft incidents has been accompanied by a dramatic rise in financial impact. The average loss per incident skyrocketed to $115,230, marking an 83% increase from the same period last year. This trend underscores the growing sophistication and ambition of cargo thieves, who are systematically targeting high-value shipments.
California remains the epicenter of this crisis, accounting for 45% of all reported cargo thefts, followed by Texas at 14%. Particularly concerning is the Southern California Red Zone, defined as the first 200 miles of travel for shipments departing from this area, which alone concentrated an alarming 36% of all cargo thefts in the country, averaging 58.6 thefts per month, nearly two each day. Remarkably, this region experiences as many cargo thefts as Texas, Tennessee, Illinois, Georgia, and Arizona combined.
"This report should be a wake-up call. We conduct this research to help quantify the risk shippers need to mitigate in their supply chains. The increasing frequency and scale of cargo thefts make it clear that companies need more supply chain risk management and control over their shipments," said Barry Conlon, CEO and Founder of Overhaul. "Criminals are not only more organized, but they're also tracking loads as they leave warehouses and distribution centers known to store valuable products, waiting to strike when vehicles are left vulnerable."
The most sought-after target for thieves was electronics, representing 23% of all thefts. Home and garden products are a distant second at 14%. The report also highlights a concerning trend in the methods employed by criminals. Facility thefts have seen a significant uptick, now representing 19% of incidents, a sharp increase from just 4% in the first half of 2023. Additionally, there's been a rise in large-scale pilferage incidents, contributing to a 17% increase in the average value of pilferage thefts.
These findings are a prime example of why Overhaul's advanced monitoring and tracking solutions, which ensure that 99.9% of cargo arrives safely - on time and intact - are more critical than ever. The company's comprehensive approach to safeguarding cargo, supported by a 96% recovery rate of stolen cargo in the U.S., provides shippers with the confidence that their valuable goods are protected every step of the way.
"With criminal networks becoming increasingly organized and sophisticated, companies should implement a multi-layered approach to safeguard their supply chains," Ron Greene, EVP, Risk, Intelligence and Response, said. "Effective risk management today means rigorous verification of everyone involved in moving or storing shipments, extreme diligence in vetting carriers and drivers — especially in high-risk zones like Southern California — and employing tracking technology throughout the shipment's journey. With these measures, companies can better protect their cargo, quickly identify potential threats, and engage law enforcement efficiently if a theft occurs."