Report: Cargo theft increases by 49 percent in the first half of 2024
Freight hubs and major cities across North America are experiencing an alarming increase in cargo theft, with incidents skyrocketing 49% in the first half of 2024 compared to the same period last year, according to Overhaul’s H1 2024 U.S. and Canada Cargo Theft Report.
The increase in theft incidents has also been accompanied by a dramatic increase in financial losses. The average loss per incident jumped 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.
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 need to 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. “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.”
The most coveted target for thieves was electronics, which accounted for 23% of all thefts. Home and garden products came in a distant second at 14%. The report also highlights a worrying trend in criminals’ methods. Thefts from 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.
These results are a prime example of why Overhaul’s advanced monitoring and tracking solutions, which ensure 99.9% of cargo arrives safely – on time and undamaged – are more important than ever. The company’s comprehensive approach to cargo protection, backed by a 96% stolen cargo recovery rate in the U.S., gives shippers the peace of mind that their valuable goods are protected every step of the way.
“As criminal networks become more organized and sophisticated, companies should implement a multi-layered approach to protecting their supply chains,” said Ron Greene, EVP, Risk, Intelligence and Response. “Effective risk management today means rigorous screening of everyone involved in the transport or storage of shipments, extreme care in vetting carriers and drivers – especially in high-risk zones like Southern California – and using tracking technology throughout the shipment’s journey. With these measures, companies can better protect their cargo, quickly identify potential threats and efficiently engage law enforcement in the event of theft.”
