Cargo Theft Crackdown Initiated by DOT
The U.S. Department of Transportation (DOT) has taken a significant step in addressing the growing issue of cargo theft by issuing an information request to combat cargo theft and fraud in freight markets. The request, titled "Protecting America's Supply Chain from Cargo Theft," was published on Thursday.
The DOT recognises the need for improved coordination among law enforcement agencies, including federal, state, and local, to effectively address both opportunistic and multi-jurisdictional organized cargo theft cases. Cargo theft, which can be categorised into 'straight thefts' and 'strategic theft networks', poses a significant threat to the economy, supply chains, and in some cases, funds illicit activities such as narcotics trafficking, counterfeiting, and human smuggling.
'Straight thefts' involve stolen trailers, containers, or parked trucks, while 'strategic theft networks' involve fraudulent carriers, staged diversions, cyber-enabled thefts, and insider collusion. The industry currently reports cargo theft to various agencies or jurisdictions, but barriers prevent industry from reporting theft incidents to federal agencies. The DOT aims to reduce these barriers.
Current reporting of cargo theft incidents is fragmented and inconsistent, leading to limited national-level visibility. To enhance cargo theft visibility, the DOT is seeking data and comments within five stakeholder categories: general, law enforcement, industry, Federal partners, and academia.
The main U.S. authorities and industry companies coordinating and confronting the growing cargo theft are the U.S. Department of Homeland Security, especially its maritime container security initiatives, along with major shipping companies and port authorities such as those at the Port of Long Beach. Cybersecurity firms like Stellar Cyber and technology providers are also involved in securing supply chain networks.
The DOT acknowledges that cargo theft at marine terminals and during vessel-truck-rail transfers presents a particular challenge due to the high volumes and values of goods moving through U.S. ports. To address this, DOT operating administrations - FMCSA, FHWA, FRA, MARAD, FAA, and PHMSA - should contribute to addressing cargo theft while avoiding duplication of FBI/DHS roles.
Industry best practices and technologies have proven effective in reducing both opportunistic and organized thefts. The DOT should pursue data collection improvements to enhance cargo theft visibility and measure success in reducing cargo theft using performance metrics such as the number of theft incidents, economic losses, and disruptions to supply chains.
According to The Travelers Institute, cargo theft spiked by more than 90% from 2021 to 2024, and the average cost of a stolen load is over $200,000. The DOT aims to improve coordination across modes, support data collection, and strengthen resilience by working with law enforcement, industry, and Federal partners.
By addressing cargo theft, the DOT hopes to improve the efficiency and security of the U.S. supply chain, ultimately benefiting businesses and consumers alike.
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