Cargo Theft Is a Growing National Security Issue

In October 2024, PFL Logistics a third-party logistics company based in Evansville, Ind. lost $60,000 due to a stolen shipment. Scheduled for delivery using a previously trusted carrier, the shipment was proceeding as normal until communication with the carrier completely stopped. The cargo was never delivered.
As PFL tried to figure out what happened to the shipment, it was forced to absorb a significant loss for a business of its size. Unfortunately, this story is not unique to PFL. Cargo theft is on the rise across the country, threatening our supply chains and hurting American businesses and consumers.
The term “cargo theft” encompasses all large-scale theft operations targeting the shipping and cargo industries. Since 2020, cargo theft has surged across the country, reaching a decade high by some calculations. With the rise of e-commerce, this crime domain includes sophisticated domestic and international groups from places like China, Eastern Europe, and Mexico. I’ve learned that these criminals not only hijack trucks and rob rail cars but also exploit vulnerabilities in the online ecosystem. They often concoct elaborate and fraudulent schemes to deceive businesses and other third parties and steal or hold their cargo hostage.
Transnational groups are using complex tactics and technology to target high-value goods to steal and finance illegal activities like drug smuggling. And, because cargo theft takes so many forms from spoofing and fictitious pickups to phishing and identity theft this crime is hard to spot and stop, enabling repeat offenders.
Homeland Security Investigations estimates that the annual loss from cargo theft accounts is $15-35 billion annually, with these costs ultimately being shouldered by customers when retailers are forced to raise prices to recover losses.
Eliminating cargo theft will require an “all hands on deck” approach that involves Congress, federal agencies, local law enforcement, and the private sector. We must come together to stop these criminals that are hurting our supply chains and threatening our national security.
Read my recent Washington Times column about this issue by clicking here. |