Analyst Insight: According to the latest analysis by CargoNet, reported cargo theft incidents rose 27% between 2023 and 2024, across the U.S. and Canada. Dollar value estimates of loss are wide-ranging, typically between $15 billion  and $30 billion annually, and this likely understates the problem. Under-reporting is common.

The intermodal industry is particularly exposed due to its modal transfers and handoffs. Cargo at rest is cargo at risk, and these risks include financial, reputational, insurance and human safety. IANA recently surveyed its membership and found that over 50% of respondents had been impacted, and this was not limited to freight. Thieves have also targeted chassis. 

In response to theft, strategic fraud and double brokering, the supplier community is embracing a range of visibility solutions. Transportation management system-integrated tracking devices, an AI-enabled scanning platform, and a roadside camera network are among the products addressing the industry's vulnerabilities.

IANA’s Intermodal Safety and Security Committee recently established an Intermodal Cargo Theft Working Group. The aim of this collaborative effort is to break down silos and silence around cargo theft, creating a space to develop and highlight preventative solutions.

This community understands that each mode in the supply chain has an opportunity to assist, including improved training and strategic planning. Federal intervention is also crucial. Cargo theft is an interstate problem, yet prosecutorial responses vary by jurisdiction, often relegating it to a property crime and an insurance claim. Our members report a revolving door when enforcement does occur. Those bad actors who are caught do not remain long in custody.

IANA is supporting two pieces of federal legislation that will increase the punishment for and deliver a message to cargo thieves. The first is the Combatting Organized Retail Crime Act (CORCA) (H.R. 2853 & S. 1404), which introduces strengthened legal provisions to prosecute interstate and transnational theft, and establishes a center within the Department of Homeland Security to coordinate law enforcement efforts.

The second is the Household Goods Shipping Consumer Protection Act (H.R. 880 & S. 337), which would grant the Federal Motor Carrier Safety Administration more enforcement authority. It would allow FMCSA to deny fraudulent registration requests and to assess penalties for violations.  

The challenge we face requires commitment at all levels, one that’s proportionate to the adversary. These criminals are both business savvy and technologically proficient. They’re infiltrating load boards and risk-management companies themselves to advance their fraud, and they know how to move stolen goods online once stolen. 

It’s a game of cat and mouse, in which digital tools are available to freight stakeholders, but businesses must elevate the importance of security within their organizations. Industry groups can play a central convening role in this effort. Together with others, we can prod the federal government to recognize that the transnational criminal networks behind cargo theft are a national security threat, requiring a coordinated government response. 

Resource Link: https://intermodal.org/

Outlook: While private sector prevention and detection can reduce the investment return on stolen freight and fraudulent behavior, only the rule of law can flip the script, pushing the risk back on to those who break it.