Every year, the long Memorial Day weekend is a time when cargo theft is a persistent and looming threat.
CargoNet, based on theft data for the period from 2019 to 2023, between the Thursday before Memorial Day and the Wednesday following, estimated that the total losses were worth $12.4 million with an average loss of $264,016.
Scott Cornell, Travelers Insurance’s crime and theft specialist and transportation lead, said that “your response time is crucial.” “The longer you take to respond to a theft of cargo, the less likely you are to recover it,” said Scott Cornell, transportation lead and crime and theft specialist at Travelers Insurance.
Cornell says that after the first 24 to 48 hours, your chances of recovering a stolen cargo load drop by at least 40%.
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Understanding the basics
Education and prevention are two of the most effective ways to prevent cargo thievery. Cornell advised fleets that they should establish a foundation for good processes and procedures. This includes teaching frontline staff the latest methods and trends in cargo theft. If they are hauling electronics to Southern California, for example, they should learn how electronics can be stolen and the areas where this is most likely to occur.
Cornell also stressed the importance of using red zone rules, which include instructing drivers to park their vehicles in well-lit and secure areas and to use hard-locking devices such as air cuffs and landing gear locks, to prevent the load being stolen or moved. geofencing, route-fencing and other techniques can be used to leverage covert tracking.
“The real problem is someone impersonating or stealing the carrier’s identity, then going into a warehouse and picking up freight and disappearing. This is the majority of what happens,” said Frank Matarazzo. CEO of Fusion Transport.
Verifying the legitimacy of cargo carriers is important in the face of the increasing number of fictitious pickups, identity theft and other fraud tactics.
Matarazzo suggested a carrier vetting procedure that would identify the carrier on paper. Knowing the basic criteria about carriers is important. From their authority to their safety record, and even their truck count.
A checklist and a step to follow on the ground, at the warehouse or wherever freight is being loaded is another part of this. Look at the operating authority and insurance. Also, check for any differences from the original booking. “For us, there is a checklist that we use before we back a truck into a door,” explained Matarazzo.
Technology as a two-edged blade
Technology can be a powerful tool in reducing cargo theft. However, it also provides new opportunities for thieves.
According to a earnings call, J.B. Hunt Transport Services, ( CCJ Top250 ), No. Strategic cargo theft increased in the first quarter. “While technology is an important pillar of our business, it has also opened up new avenues for bad actors who are able to steal thousands of loads using our platform,” said Brad Hicks. He is the president of highway services at J.B. Hunt and executive vice-president of people.
Hicks commented that the company has adjusted and enhanced security measures. Some processes are now more manual until the new security features have been implemented.
Matarazzo said that the rise in strategic thefts is a reminder to get back to the basics. “When the rubber hits the road, it’s important to verify who shows up at your front door. Is this the business you expected? It’s rare that ABC Company shows up when a bad actor pretends to be ABC Company. Check the driver’s licence, registration and insurance. Inspect the trailer and truck. “This is not a technology-based task and should be performed by every warehouse.”
The benefits of using technology to prevent cargo theft are significant.
Joe Ohr, Chief Operating Officer at NMFTA, says that improved freight visibility is an effective way to reduce cargo theft, thanks to technological advances. It’s important to have visibility not only of the truck but also of the trailer, and the assets within. It’s important that only authorized personnel can access this visibility.
Carriers can also add additional layers of security by using legacy and new products. C.J. Gallo, senior Product Manager at Transfix, spoke about the company’s new tool, RateCon Shield. This tool helps to prevent carriers and broker from double-brokering.
Gallo explained that a smart QR Code is placed in rate confirmation documents. “When carriers receive a shipping offer, they can scan a QR code to verify the confirmation and load is legitimate, authentic, and coming from the expected brokerage, along with detailed information on the shipment.”
Ohr emphasized that the key is to train employees to be alert and vigilant. “Ensure that you have technology to track not only your trucks, but also your cargo. Audit your technology regularly to ensure that only authorized personnel can see your cargo. Train your back-office personnel to be cyber-aware to avoid falling prey to look-alike sites.”
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Discussions about cargo theft are important
Gallo said that communication is key to fraud mitigation as an industry-wide problem. Carriers, brokers, and shippers should all take the time to review what’s available to help prevent freight fraud, including cargo theft, double-brokering and cyber-attacks.
“Things could go wrong at any moment during a load’s travel,” Gallo said. “When something feels or looks ‘off’, carriers should always communicate this as it happens. They should be able to communicate with their partners.