Cargo theft reaching record levels, prompting calls for congressional action

Trucking, railroad and shipper representatives raised the alarm about the rise of cargo theft affecting U.S. supply chains during a congressional hearing last week.

Leaders from BNSF, the Owner-Operator Independent Drivers Association, Tanager Logistics and Academy Sports and Outdoors urged lawmakers to step up enforcement during a Senate subcommittee hearing on Feb. 27.

Broker fraud, shipment interception and other forms of cargo theft are costing supply chains up to $35 billion annually, multiple speakers said, citing data from the federal Homeland Security Investigations agency.

Those crimes are contributing to higher consumer costs — and threatening some carriers’ livelihoods.

“Since I began my testimony, a small business trucker has likely fallen prey to fraud that could jeopardize their entire business,” OOIDA EVP Lewie Pugh said. “That’s how commonplace freight fraud is becoming in trucking.”

Much of the crime is committed by repeat offenders, and only one in 10 results in an arrest, Sen. Todd Young said, citing the American Trucking Associations.

Cargo theft rises and gets creative

The rise in cargo theft is hurting truckers, logistics companies, shippers and if it continues can also begin to hurt consumers’ pockets.

“In my 25 years in the supply chain, I’ve never seen cargo theft this prevalent,” Robert Howell, chief supply chain officer at Academy Sports and Outdoors said during the hearing.

Howell said the types of thefts include load interception, identity theft, double brokering and cyber fraud. Crime in this area has advanced from stealing a truckload or duplicating a Department of Transportation motor carrier number to cyber theft of online credentials and systems.

“Recently, we had a shipment we call private label swimwear. It was intercepted on its way from Nevada to our Texas distribution center. As you can imagine,