Staying Ahead of Cargo Thieves: The Latest Trends and Strategies for Supply Chain Security

The threat of cargo theft is a persistent risk for businesses operating in the global supply chain, with organized crime groups continually adapting and evolving their tactics to target high-value goods. According to our latest Cargo Theft Report, the rise in strategic thefts, which involve deception, fraud, and sophisticated planning, is a key trend in 2024, with an exponential increase in the United States in particular.

In North America, the risk of cargo theft is heightened, with the United States and Canada experiencing significant increases in thefts. The report highlights that food and beverage products dominate the list of targeted commodities, accounting for 22% of all incidents, followed by agricultural goods at 10%, electronics at 9%, and fuel at 7%. These patterns reflect both the rising demand for essential goods and the impact of broader socioeconomic factors, such as severe weather disruptions to agricultural production and the heightened cost of living.

To combat the growing threat of cargo theft, businesses must prioritize security and resilience in their supply chains. This includes implementing robust risk management strategies, such as:

• Conducting thorough risk assessments to identify potential vulnerabilities
• Implementing secure communication protocols to prevent data breaches
• Utilizing GPS tracking and monitoring systems to ensure real-time visibility of cargo
• Collaborating with suppliers and partners to co-manage risks and share best practices

The rise of technologically sophisticated thefts, including the use of artificial intelligence (AI) to craft phishing emails, deep fakes, and malware, poses a significant threat to businesses. To mitigate this risk, companies must invest in cybersecurity measures, such as:

• Implementing robust firewalls and intrusion detection systems
• Conducting regular software updates and patching
• Utilizing encryption technologies to protect sensitive data
• Providing training and awareness programs for employees to recognize and report suspicious activity

In addition to these strategies, businesses must also be aware of the tactics used by organized crime groups to execute fraudulent pick-ups. These tactics include:

• Cloning carrier trucks, including the correct colors, logos, and unit number structure
• Using deceptive tactics, such as impersonation, to gain access to cargo
• Exploiting weaknesses in supply chain infrastructure, such as outdated locks and insufficient security personnel on railcars

The report highlights the importance of building supply chain resilience, which can be achieved by:

• Understanding how risk is managed across the supply chain
• Having a detailed map of the supply chain to understand the impact of emerging risks
• Building relationships with suppliers to co-manage risks
• Investing in technology and data-driven insights to enhance decision-making

By prioritizing security and resilience, businesses can reduce the risk of cargo theft and protect their bottom line. As Tony Pelli, Practice Director at BSI Consulting, notes, ‘2024 and the start of 2025 have underlined the importance of flexibility and resilience in supply chains. From tariff threats to cargo theft, BSI Consulting is seeing risk at all levels of the supply chain, and we expect to continue through the rest of the year and beyond.’

The threat of cargo theft is a persistent risk for businesses operating in the global supply chain. By prioritizing security and resilience, investing in cybersecurity measures, and being aware of the tactics used by organized crime groups, businesses can reduce the risk of cargo theft and protect their bottom line. As Dr. Cyndee Garbrecht, SVP, Claims, Munich Re Specialty Group, N.A., notes, ‘Cargo claims trends in 2024 included increased theft, evolving tactics, and new targets for criminals. These trends are expected to continue into 2025, and it is essential that businesses take proactive measures to safeguard their supply chains.’

Cargo insurance and legal liability coverages can also provide valuable protection for logistics companies and cargo owners. Roanoke’s mission is to drive supply chain success for the trade and logistics industries through expert service and uniquely designed insurance, bond, and specialty solutions. By providing access to a range of cargo insurance and legal liability coverages, Roanoke can help cargo owners and logistics companies to mitigate the financial risks associated with cargo theft and other supply chain disruptions.

If you have any further questions or concerns about cargo theft and supply chain risk management, please do not hesitate to contact one of our insurance experts. Additionally, for more information on cargo essentials, please refer to Roanoke’s Cargo Essentials eBook.