Freight hubs and major cities across North America are experiencing a rise in cargo theft. According to a report by Texas-based supply chain visibility and security company Overhaul, the number of incidents increased 49% in the first half of 2024 compared to the same period last year.
With the increase in theft incidents came an even greater increase in their financial impact, with the average loss per incident rising to $115,230, an 83% increase over the same period last year. This trend underscores the increasing sophistication and ambition of cargo thieves who systematically target high-value shipments, Overhaul said in its United States and Canada H1 2024 Cargo Theft Report.
California remains the epicenter of this crisis, accounting for 45% of all reported cargo thefts, followed by Texas with 14%. Of particular concern is Southern California’s Red Zone, defined as the first 200 miles of transit for shipments departing from this area. This region alone accounts for an alarming 36% of all cargo thefts in the country, averaging 58.6 thefts per month, or nearly two per day. Notably, this region accounts for as many cargo thefts as Texas, Tennessee, Illinois, Georgia, and Arizona combined.
“This report should be a wake-up call. We are conducting this research to quantify the risk that shippers must mitigate in their supply chains. The increasing frequency and magnitude of cargo thefts make it clear that companies need better supply chain risk management and more control over their shipments,” said Barry Conlon, CEO and founder of Overhaul, in a press release. “Not only are criminals more organized, but they are also tracking loads as they leave warehouses and distribution centers where valuable products are known to be stored, waiting to strike when the vehicles are unprotected.”
Sorted by item, electronic items were the most popular target for thieves, accounting for 23% of all thefts. Household and garden products came in a distant second at 14%.
The report also examined the methods most commonly used by criminals and found that thefts in establishments have increased significantly, now accounting for 19% of incidents – a sharp increase from just 4% in the first half of 2023. In addition, there was an increase in large-scale thefts, contributing to a 17% increase in the average value of thefts.
