Cargo theft is getting bigger and more organized, costing companies and insurers a lot more money. A recent report shows that losses from stolen cargo jumped nearly 60% last year, reaching about $725 million across the US and Canada. Interestingly, the number of theft incidents stayed about the same, around 3,594 cases, but the damage each time is growing.
Experts say the reason for the higher costs is that thieves are now going after more valuable shipments. The average loss per theft increased by 36% to nearly $274,000. Groups behind these crimes plan carefully and use technology to target specific shipments rather than just grabbing whatever they can.
Janelle Griffith, a logistics expert from Marsh, points out that this trend has been building for almost ten years and sped up during the pandemic. As supply chains and criminal networks both started using more digital tools, theft became more strategic and harder to stop. Griffith explains that modern cargo theft isn’t just someone stealing a load on a whim; it’s often a coordinated effort that exploits weak spots in the supply chain.
One big problem is that supply chains involve many different players—shippers, brokers, carriers, warehouses, and receivers. Each handoff is a chance for thieves to strike. Even with technology helping track shipments, there isn’t always a clear system to verify who is handling cargo at every step. Criminals are using tricks like fake identities, false carriers, and fake documents to get through these gaps.
Thieves are also changing what they steal. While pricey, cross-border shipments remain targets, there’s an increase in theft of everyday items like groceries or household goods because these are easy to sell and hard to trace once they disappear into informal markets.
Technology helps criminals too. Email scams that mimic real companies are common. Sometimes they change just one letter in a company’s email address to fool freight brokers, who may not notice the difference right away. Since these scams keep evolving, the logistics industry often feels like it’s chasing after the latest tricks.
Insurance companies are reacting by being more careful about who they cover. Griffith says insurers now look more closely at how freight brokers check carriers and are even verifying drivers for certain shipments. Warehouses need to confirm who picks up cargo instead of just relying on shipping papers, which can be faked. In some cases, insurers are putting limits on coverage for crimes linked to organized groups.
Despite all this, Griffith is hopeful that with better teamwork and technology, losses can come down. Tools like tracking sensors and identity checks are useful but work best when paired with careful human oversight. Companies that combine strong tech, strict procedures, and good cooperation with law enforcement tend to do better and get better insurance rates.
Griffith stresses that clear records showing the chain of custody reduce theft risk. When brokers can prove their clients take security seriously, insurers often reward them with lower premiums. In the end, working together and paying attention to every step in the supply chain is the best way to stay ahead of cargo thieves.