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In a report on a funding bill, the U.S. House Appropriations Committee requested a new taskforce to combat cargo thefts.
The 2025 Department of Homeland Security Appropriations Bill includes language that would direct a $2 million for the establishment of a Supply Chain Fraud and Theft Task Force. The task force’s purpose will be to combat the sharp increase in cargo theft as well as broader supply-chain fraud. The nearly $65 billion proposed for security programs will include this.
The bill stated that “the committee remains concerned about the alarming increase in supply chain theft and fraud through interstate commerce, especially in the rail, motor vehicle and intermodal systems.” The bill recommends an increase of $2,000,000,000 over the fiscal year of 2024 to combat the recent escalation in these illicit activities.
American Trucking Associations made security a top priority. This includes both cargo theft and cyber-threats. The organization and Rep. David Valadao, R-Calif., who championed the bill, applauded the inclusion of a Task Force in the Bill.
Good news in the fight against cargo theft
@RepDavidValadao included a provision to create a Supply Chain Fraud and Theft Task Force in a House Appropriations Bill. This would be a powerful blow against organized crime, which is one of ATA’s strategic priorities. pic.twitter.com/MUJotAABVZ — American Trucking (@TRUCKINGdotORG) June 12, 2024
Henry Hanscom, senior Vice President of Legislative Affairs at ATA, stated June 12 that “the billions of tons transported by trucks into every American community are increasingly becoming a prime target for organised crime, putting drivers at risk and increasing costs for consumers.” “ATA commends Congressman Valadao and the House Appropriations Committee for directing Homeland Security Investigations (HSI) to leverage its unique, cross-border authority.”
Hanscom is confident that the provision will strengthen partnership between the government and law enforcement, motor carrier and their supply chain partners in order to strike an effective defence. The bill requires the task force coordinate with local and federal agencies of law enforcement as well as relevant stakeholders in the private sector.
Danny Ramon is the intelligence and response manager for Overhaul. He said, “The fact they acknowledge the issue and are making an effort to solve it is obviously a good sign.” “But it is also a sign that the problem is so large.” Fraud is not only a problem for third-party security companies. The U.S. Government is now forced to step in to say that we will have to take steps remediate this issue.
Overhaul reported 371 cargo thefts across the country in the first quarter. This was a 38% rise compared to the same period last year. The number of cargo thefts is likely to be much higher, since there is no requirement for cargo thefts to be reported. The most common type of theft was full truckloads, which accounted for 33%. The next most common type was facility theft, which was 27%, followed by pilferages, at 25%.
In Q1-2024, Overhaul reported 11 thefts in the US involving high-value cargo. In our special report, we examine why criminals target these high-value shipments. We also discuss how you can protect yourself. https://t.co/Ax1xYEHurs — Overhaul (@Overhaulinc) May 31, 2024
Ramon said that the biggest takeaway was not just how much it is increasing, but by how much. “We’re tracking an increase of 38% for Q1 2024 compared to Q1 2023. This is a huge increase when you consider that 2023 was an increase from 2022, and 2021 was an increase from 2021. It’s not just that it’s increasing, but it’s also speeding up. It’s gaining speed, and that is a very frightening thing.
Electronics accounted for 23% of all freight in the first quarter, according to Overhaul. The next most targeted type of freight was home and garden, followed by miscellaneous goods at 13%, and clothing at 13%. California, Texas and Arizona had the highest cargo theft rates.
Ramon said that the targeting of household appliances in home and garden is a common occurrence. “We’ve noticed that this is a new subtype of targeted product. It’s a high-value product, it’s portable, and they’re desirable. But we are seeing a lot more things in the home and garden.”
It is important to ensure the safety of your cargo, not only for your company’s reputation but also for compliance. Prevent theft and tampering with a quick-read compliance brief from our experts, available now FOR FREE: https://t.co/5NdOqsryGy #CargoSecurity #SecuritySeals pic.twitter.com/NWZqAkavMY — J. J. Keller & Assoc (@JJKeller) June 4, 2024
J.J. Keller & Associates announced on June 4 that they are offering a free resource outlining the best practices for choosing seals to prevent thefts and tampering. This is the latest private company to take on the problem. Last year, Truckstop launched a campaign to combat cargo theft by sharing information.
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