WASHINGTON — The American Trucking Associations’ chief economist Bob Costello recently participated in a roundtable hosted by a House Transportation & Infrastructure Subcommittee to discuss the impact that cargo theft has on trucking operations, other links in the supply chain and consumers.
“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,” Costello said. “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.”
This is the second time in less than two months that ATA has been called upon as a key witness at a congressional hearing focused on cargo theft.
Losses in the Billions
According to the ATA, thieves targeting freight shipments are taking a toll of up to $35 billion on the supply chain and fueling price inflation for consumers. Strategic theft has risen 1,500% since the first quarter of 2021, and the average value per theft is over $200,000. Cargo theft comes in many forms and causes significant financial losses and operational disruptions, whether it involves imitating a legitimate company, pilfering goods over time, breaking into a parked tractor-trailer, double-brokering fraud, or holding freight hostage. Increasingly, thieves are employing sophisticated cyber methods to steal product.
In February, ATA member Adam Blanchard testified before a Senate Commerce Subcommittee about his experience having his company’s identity stolen and becoming a victim of cargo theft. Although he diligently reported these incidents to his insurance, local law enforcement, FBI, and DHS, no one provided assistance.
Complex Crime
“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,” the ATA said in a press release. “That’s why, earlier this month, ATA endorsed the Combating Organized Retail Crime Act. The bill seeks to establish a unified, federal response to the proliferation of cargo theft perpetrated by criminals who often operate across state and international borders.”
ATA added security—including cargo theft and cyber threats—to its list of strategic priorities last year.
Dana Guthrie is an award-winning journalist who has been featured in multiple newspapers, books and magazines across the globe. She is currently based in the Atlanta, Georgia, area.
