Cargo theft continues to plague the supply chain and logistics industries.

In 2023, there were 1,183 incidents of cargo theft in the U.S., averaging losses of $586,917 per case — a 67% increase from 2022. Another 49,366 cargo crimes were reported across Europe, the Middle East and Africa in just the first nine months of 2023.

These incidents have major financial implications, both on countries’ economies and on the transportation companies who move these goods. Cargo theft cost the U.K. over $81 million, France over $53 million, and Germany nearly $131 million. Around the globe, stolen goods amount to nearly $700 million annually.

The ongoing e-commerce boom has only exacerbated this threat. To accommodate a global web of deliveries, supply chains have had to become even more wide-reaching and complex. As a result, vulnerable touchpoints where cargo theft can occur have also grown in numbers.

In light of such risks, it will be increasingly critical for supply chain-reliant companies to protect their goods in transit and maintain operational resilience in order to meet customer expectations.

Growing Risks and Vulnerabilities

E-commerce sales are projected to grow to $6.8 trillion by 2028. 

As requests for on-demand delivery climbs, more and more distribution vehicles must take to the roads. Consider that 20% of all global retail sales are completed online, which means that one in five retail purchases is likely to be fulfilled by one of these delivery fleets. In the U.K., for instance, the number of active delivery vans has grown by 32% in the past decade, far surpassing the growth rate of any other vehicle type on the road. 

Shipping trucks grant criminals easy access to valuable cargo in transit, and truck thefts are rising at alarming rates. Criminal groups are utilizing increasingly sophisticated tactics in their theft operations, such as GPS jammers, which enable thieves to evade tracking systems and easily escape. 

The contents of delivery vehicles make them especially attractive targets for theft, as they’re likely to be transporting high-value, easily resalable items such as electronics, the largest consumer e-commerce category in the U.S., or clothing and shoes, which account for the largest volume of purchases. 

In-transit environments are, by nature, highly vulnerable. Fleets often traverse rural or remote areas where emergency responses can be lengthy and unreliable, and parking options are less likely to be secure. Wi-Fi and electricity also tend to be unavailable or unreliable in many of these environments, further limiting the options for security solutions. 

Seeking Solutions

While there are many security systems on the market that provide effective protection for brick-and-mortar retail environments, solutions tailored to delivery vehicles have been woefully overlooked.

For security systems to adequately protect delivery vehicles, supply chain decision-makers must consider the unique constraints of a mobile environment and seek out solutions that best address these challenges. 

Fleets and their owners should consider the following points when selecting security products: 

• Delivery vehicles don’t always offer access to electrical sources, so security systems must be portable and battery powered. 
• Most existing security systems rely on consistent Wi-Fi access – which delivery vehicles cannot guarantee. Solutions must therefore ensure uninterrupted security without Wi-Fi. Tools like LTE connectivity allow security systems to host real-time monitoring and cloud-based analytics without the need for a Wi-Fi connection.
• Effective security must go beyond mere detection to include capabilities that intervene, and deter thieves during an incident. For example, delivery vans are particularly vulnerable when unattended, whether overnight, during bathroom breaks, or while a delivery is being made. Remote intervention tools with real-time monitoring capabilities offer fleet managers the ability to view live feeds of the van’s surroundings and call for help at the earliest possible opportunity. These features can even go one step further by deploying solutions that physically deter thieves from carrying out a theft, such as blaring alarms, prerecorded voice messages warning criminals not to act, and even deployment of a disorienting cloud of fog.
• For large transportation companies with extensive fleets, cost is a significant consideration. Security solutions must strike a balance between affordability and advanced functionality, ensuring scalability across hundreds or thousands of delivery vans without compromising quality.

The rapid growth of e-commerce and the global increase in cargo theft are two sides of the same coin.

Adequately addressing this type of crime requires a shift toward proactive and interventional security tools that are tailored to the constraints and environments of delivery fleets. Companies that don’t evaluate the vulnerabilities of their goods in transit and implement effective, portable security solutions will be that much more vulnerable to cargo threats.

Alleviating logistical snafus across supply chains is about more than just protecting one’s bottom line — it’s about making sure customers get the products they need, safely and on time.

Stephen Burd is vice president of Essence Group USA.