Online Freight Theft Impacts Freight Trucking Industry
In the U.S., trucking carries nearly 75% of the nation’s cargo. Unfortunately, theft and fraud are becoming significant issues within this supply chain. Daily, these crimes cost the industry about $19 million.
San Antonio, Texas – Experts in freight trucking anticipate a rise in cargo theft as the holiday season comes and more products get transported.
According to a CargoNet report from the second quarter, there’s been a 13% increase in theft compared to the same time in 2024.
Though conventional cargo theft is still a concern, one San Antonio carrier has firsthand experience. Adam Blanchard, co-founder of Double Diamond Transport and Tanager Logistics, recalls, “Before 2020, it was straightforward theft. Criminals would cut the seal and take the cargo.”
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Online cargo theft has surged by an astonishing 1,500% since the pandemic began, highlighting a troubling trend.
Keith Lewis, vice president of operations at CargoNet, remarked that right after 2020, there was notably more online theft as criminals realized they could operate remotely and still manage their cargo.
These scammers are deeply infiltrating various aspects of the trucking sector. “They impersonated me as a freight broker to acquire cargo from legitimate companies, leading to confusion for real trucking companies contacting me for payments for cargo I never possessed,” Blanchard emphasized.
He tracked these fraudsters to Eastern Europe, discovering they had stolen a large amount of energy drinks. Despite contacting a counterfeit firm for assistance, no legal action was taken.
Blanchard has seen his reputation suffer due to these incidents, and on top of that, his business insurance premiums have doubled this year due to increased theft claims.
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Chris Spear, CEO of the American Trucking Associations (ATA), commented on the sophisticated nature of this crime, noting, “It’s a tech-driven effort by multinational organizations based in Eastern Europe and Russia, looking specifically for high-value cargo.”
This raises the question: what happens to the loads stolen by these international scammers? Blanchard explained, “They pack the cargo into containers for shipping, often to the Los Angeles area or overseas.”
According to Lewis from CargoNet, carriers may remain unaware that their packages were stolen for weeks, months, or even longer. “The challenge is that many thefts go unreported simply because there’s no obligation to report them,” he stated.
This year, California, Texas, and Illinois top the list for cargo theft, together accounting for 53% of all incidents nationwide. The most commonly targeted items include food, beverages, and household products.
According to the ATA, cargo theft results in a staggering $19 million in losses daily across the trucking industry.
The trucking sector is urging lawmakers to pass the Controlling Organized Retail Crime Act (CORCA), which they believe would provide a more cohesive framework for law enforcement and the industry to combat these organized criminal efforts. It would also create a preventative task force and establish a national cargo theft database.
In February, Blanchard testified before Congress alongside other industry leaders. He stressed, “The core issue is that no law enforcement agency is specifically targeting this crime. Until we have federal legislation to build a coalition focused on investigating and prosecuting these crimes, conditions will only worsen.”
He added that theft adversely affects the entire business spectrum, potentially resulting in increased prices for consumers. “If products fail to reach shelves, we face shortages,” Spear said. “Ultimately, this affects costs, which reflects on what consumers, including you and me, pay.”
