What is Cargo Theft & How Can I Avoid It?

Cargo theft is a growing global issue that poses serious risks to supply chains, businesses, and economies. From organized crime rings to opportunistic thefts, criminals are finding new ways to target valuable shipments. According to the FBI, cargo theft costs trucking companies and retailers between $15 billion and $30 billion annually, adding to supply chain disruptions that have fueled inflation. Understanding how cargo theft happens and implementing preventive measures is crucial to safeguarding goods in transit and storage. In this guide, we’ll explore what a cargo theft incident is, its common methods, why it’s on the rise, and how businesses can protect themselves.

What is Cargo Theft?

Cargo theft is the criminal act of stealing goods, money, or baggage from any stage of the supply chain, including vehicles, warehouses, and storage facilities. In the U.S., the average value per stolen shipment is around $214,000, with electronics, pharmaceuticals, and consumer goods being the most targeted items.

Common Methods Used in Cargo Thefts

Cargo thieves exploit vulnerabilities across the supply chain, often targeting shipments when they are most exposed. These thefts range from on-the-road hijackings to cyber-enabled fraud and insider schemes.

• Theft in Transit: Criminals hijack transport vehicles, steal goods from parked trucks, or intercept rail shipments at vulnerable stops. In November 2024, a logistics brokerage in Texas was targeted by strategic cargo thieves. A truck picked up a load of more than 34,000 avocados from a warehouse in Laredo and disappeared shortly after leaving the facility. “The truck showed up to the warehouse, gave the warehouse the load pick-up number, and then drove off and disappeared,” said a company representative. “We never heard from them and don’t know where the avocados went.”
• Theft at Facilities: Warehouses and distribution centers are targeted through break-ins, forced entry, or social engineering scams where criminals pose as employees or delivery personnel. In March 2024, thieves stole a shipping container with $500,000 worth of electric bicycles from a Delta warehouse lot. The criminals used a semi-tractor to hook up the container and drive off with 150 e-bikes, highlighting how easily unsecured lots can be exploited .
• Cyber-Enabled Cargo Theft: Criminals exploit cybersecurity gaps to reroute shipments, create fraudulent pickup orders, or manipulate logistics systems. In a recent cyber-enabled operation, criminals hacked into trucking management systems to access shipment details like origin, destination, and cargo type. They then posed as shippers and contacted drivers directly, rerouting deliveries to unauthorized locations, where the cargo was stolen.
• Insider Theft: Employees with access to shipment details and facilities may collaborate with external networks to facilitate cargo theft. A former Augusta National employee was sentenced to one year in prison after admitting to the theft of Arnold Palmer’s green jacket and other Masters memorabilia. Over a 13-year period, he stole numerous items from an Augusta National warehouse, illustrating how long-term insider access can be exploited without detection.

Why is Cargo Theft a Growing Problem?

Several factors contribute to the rise in cargo theft:

• Complex Global Supply Chains: More touchpoints in the supply chain increase vulnerability and the risk for supply chain fraud.
• Economic Conditions: Financial hardships drive increased theft activity.
• High-Value Targets: Items such as electronics, pharmaceuticals, and luxury goods attract organized crime groups.
• Challenges in Recovery: Stolen goods are often quickly sold on the black market, making recovery difficult.

The Financial and Operational Impact of Cargo Theft Crimes

Stolen cargo leads to financial losses, operational disruptions, and reputational damage for businesses. Stolen inventory results in direct financial setbacks, while rising theft rates also drive up insurance premiums.

Delays caused by theft create bottlenecks in the supply chain, increasing customer dissatisfaction. Additionally, businesses face legal and compliance risks if stolen goods include sensitive or regulated materials.

Strategies for Cargo Theft Prevention

Security Best Practices

Securing both cargo and facilities requires a layered approach, combining physical safeguards, procedures, and collaboration.

• Secure Cargo in Transit: Use GPS tracking and geofencing to monitor shipments, optimize routes to avoid high-theft areas, and train drivers on safe parking practices and theft prevention.
• Secure Facilities: Implement surveillance systems and access controls, use perimeter fencing and secure locks, and conduct regular security audits.
• Work with Law Enforcement and Industry Groups: Join industry coalitions that share cargo theft intelligence and collaborate with law enforcement for rapid response measures.

Technology Solutions

With 80% of businesses citing loss prevention and cross-border shipping challenges as key drivers for real-time visibility, investing in technology is essential. Real-time visibility and automated detection tools help companies monitor, predict, and respond to cargo theft risks more effectively.

• Live Tracking: GPS, cellular, and RFID technologies provide real-time updates on shipment location and status.
• Geofencing & Alerts: Create digital boundaries to trigger alerts for unauthorized route deviations.
• IoT Sensors: Monitor for tampering, temperature fluctuations, and unauthorized access in transit or storage.
• AI-Powered Risk Analytics: Predict high-risk scenarios based on historical and real-time data.
• Automated Notifications: Enable fast responses to suspicious activities and potential threats.

 Employee Training

Employee awareness and preparedness play a critical role.

• Train drivers and warehouse staff to recognize theft risks and suspicious activity
• Establish clear reporting protocols for incidents
• Conduct background checks to mitigate insider threats

Risk Assessment and Planning

A structured risk management strategy helps identify vulnerabilities and ensures teams are ready to respond to theft incidents.

• Conduct Regular Assessments: Evaluate supply chain processes, routes, and partners to uncover weak points.
• Identify High-Risk Areas: Map out theft-prone zones and prioritize resources accordingly.
• Develop a Crisis Response Plan: Ensure your team knows exactly how to respond to theft incidents with minimal disruption.

Trackonomy’s Solutions for Cargo Theft Prevention

Trackonomy provides advanced security solutions to protect shipments from theft with end-to-end tracking, smart sensors, and AI-powered threat detection. Our real-time monitoring and alert systems enhance visibility and security, enabling businesses to prevent and mitigate theft effectively. By integrating GPS tracking, geofencing, and IoT sensors, Trackonomy helps companies detect unauthorized access, monitor environmental conditions, and predict risks before they escalate. Our proven solutions have increased theft detection rates, reduced financial losses, and strengthened supply chain resilience for businesses operating in high-risk environments.

One logistics provider implemented Trackonomy’s SmartTape—the first cellular-enabled asset tracker in a tape form factor—to strengthen shipment security. Within the first ten days of deployment, the company detected a tampering event in real time, enabling immediate intervention and preventing a potential theft or case of carrier fraud.

“Trackonomy’s solution not only caught a tampering event before it escalated, but also gave us the confidence to operate in high-risk regions with minimal worry. It’s been a game-changer for our operations.”
— Logistics Company Representative

This level of proactive visibility allowed the business to continue operating in vulnerable areas with greater confidence—illustrating how real-time intelligence can deliver real-world results.

Cargo theft remains a serious challenge, but proactive security measures and smart technologies can significantly reduce risk. By securing shipments, training employees, and leveraging real-time tracking solutions, companies can strengthen their supply chains and minimize loss.

Reach out to Trackonomy for tailored solutions to secure your supply chain.

References

1. CNBC: Cargo theft, led by food and beverage, is surging across the U.S.
   Provides the FBI estimate that cargo theft costs U.S. businesses $15–$30 billion annually and highlights recent trends.
   
2. Yahoo Finance: State of Visibility 2024
   Cites that 80% of businesses identify loss prevention and cross-border shipping as key drivers for real-time visibility.
   
3. FBI UCR: Cargo Theft Definition and Data Collection
   Official FBI definition of cargo theft, including examples across the supply chain.
   
4. WWEX: Types of Cargo Theft
   Outlines categories of cargo theft: straight theft, strategic theft, pilferage, and cyber theft—used to define key methods.
   
5. WorldCraft Logistics: Cargo Theft—A Rising Concern in the Logistics Industry
   Estimates global cargo theft losses exceeded $34 billion in 2021, supporting the scale of the issue.
   
6. KXAN: Holy guacamole! 34,000 stolen avocados found in Central Texas
   Case study of a November 2024 transit theft involving a fake carrier in Texas.
   
7. Houston Chronicle: Texas Avocado Bust
   Follow-up reporting on the same avocado theft case, confirming recovery and organized crime suspicion.
   
8. Yahoo Sports: Ex-Augusta National employee gets 1 year in prison for Masters theft
   Example of long-term insider theft from a high-profile warehouse, used to illustrate internal threats.
   
9. Supply Chain Brain: Cyber Scams and High-Tech Heists
   Highlights how criminals use hacked TMS systems to reroute or intercept freight—used in the cyber theft section.
   
10. Vancouver Sun: $500K Worth of E-Bikes Stolen in Delta
    Example of theft at a facility involving the use of a semi-tractor to steal a full container of electric bikes.