Testimony on Cargo Theft Offers a Look Into Enormous Surge

Cargo Theft Surge: How Criminal Networks Are Targeting America’s Supply Chain

Cargo Theft on the Rise Across the U.S. Trucking Industry

Cargo theft is becoming a bigger threat to America’s trucking industry and supply chains. During a recent Senate Judiciary Committee hearing, Donna Lemm, Chief Strategy Officer at IMC Logistics, testified on behalf of the American Trucking Associations (ATA). She explained how widespread and organized these crimes have become. Lemm said cargo theft is not only growing but also evolving. Today’s criminals are using more sophisticated methods to target freight across the country.

According to Lemm, IMC Logistics has seen a sharp increase in cargo theft incidents over the past three years. In 2021, the company reported just five cases of theft. By 2024, that number had exploded to 876 incidents. This marks a 17,520% increase. Industry-wide data confirms this alarming trend. CargoNet, a company that tracks cargo theft, recorded 3,625 thefts in 2024. That is a 27% increase from the previous year. The value of the stolen goods totaled more than $450 million.

Lemm said these thefts are not random crimes. Organized theft groups (OTGs) and transnational criminal organizations (TCOs) are targeting freight with clear intent. They take advantage of weaknesses at every stage of shipping. This includes cargo moving on trucks, trains, ships, and stored in terminals and warehouses. The motivation is simple. Cargo theft is considered low-risk but offers high financial rewards.

How Cargo Theft Works in Today’s Supply Chain

Cargo theft today typically falls into two categories. The first is called straight theft. The second is known as strategic theft.

Straight theft involves directly stealing cargo from trucks, trailers, or storage facilities. This includes burglaries at truck stops, parking lots, or hijackings where criminals use force or deception. These thefts often target items that are easy to resell, like food, electronics, and household goods.

Strategic cargo theft has become more common and is often more complex. This type of theft relies on fraud, deception, and cyber tactics. Criminals pretend to be legitimate carriers or brokers. They use fake paperwork or hack into systems to redirect shipments. Lemm shared examples of fictitious pickups, fake bills of lading, and double-brokering scams. These scams allow criminals to steal cargo without ever physically touching it.

These criminals take advantage of digital freight booking platforms. Doing business online has become normal in the industry. This makes it easier for scammers to create fake companies and steal shipments.

Examples of Cargo Theft in the Trucking Industry

Lemm shared several real-life examples involving IMC Logistics. These stories show how cargo theft happens.

In one case, criminals broke into an IMC terminal in Memphis during the night. Several vehicles stormed the yard. They cut through fencing and targeted specific containers with valuable goods. Even though security intervened quickly, the thieves still escaped with tens of thousands of dollars’ worth of cargo in just minutes.

Another example involved a theft in broad daylight. A truck driver was stopped at a red light in Memphis. The trailer began to shake. Looking in the mirror, the driver saw thieves unloading boxes into a waiting pickup truck. Within seconds, the thieves stole 116 boxes.

Fraud and cybercrime also play a role in cargo theft. In one case, criminals used a fake email address to impersonate a customer. This allowed them to redirect shipments to a fraudulent destination. In another case, criminals impersonated a motor carrier. They used fake placards and IDs to steal cargo.

How Intermodal Freight Faces Higher Theft Risks

Companies like IMC Logistics face special risks from cargo theft. They specialize in intermodal freight. This means cargo transfers between ships, railroads, and trucks. These handoffs create more opportunities for theft.

Criminals often target these transfers at ports, rail yards, and distribution centers. Motor carriers are often held responsible for stolen cargo if theft goes unnoticed during transit. This makes cargo theft a costly problem for trucking companies.

Carriers are investing heavily in security. This includes GPS tracking, surveillance, fencing, and security guards. Despite these efforts, criminals continue to exploit weak points.

How Cargo Theft Impacts Safety and the Supply Chain

Cargo theft doesn’t just cost money. It also puts people at risk as thieves are becoming more aggressive. Some crimes involve hijackings and armed robberies. In Memphis, two drivers were robbed at gunpoint in separate incidents on the same day.

The food and agriculture industries face unique dangers from cargo theft. Thieves often target perishable goods. A broken seal on a load of produce or meat can lead to the shipment being rejected. This results in big losses for shippers. Food theft also raises concerns about safety.

Lemm said theft of food, agricultural products, and beverages was the most common type of cargo theft in 2024. Thieves also change their targets based on market trends. During the COVID-19 pandemic, medical supplies were targeted. During egg shortages, thieves stole truckloads of eggs.

How Criminal Profits Fund Other Crimes

Authorities warn that cargo theft profits fund more serious crimes. The National Insurance Crime Bureau (NICB) and FBI say these thefts support drug trafficking, weapons smuggling, and even terrorism. Organized crime groups use stolen goods to fund larger illegal operations.

Some criminal organizations run warehouses and call centers for stolen goods. In one case, IMC reported refrigerators stolen from their yard. Later, those appliances were found in a warehouse used for smuggling cash out of the country.

Why Federal Action Is Needed

Lemm and the ATA are calling for stronger federal action to fight cargo theft. They support the Combating Organized Retail Crime Act (CORCA). This bill would create a central reporting center within Homeland Security Investigations. The center would help improve data sharing and coordination across jurisdictions.

Right now, cargo theft often slips through the cracks. Local police may treat it as a simple property crime. Companies are often told to file insurance claims instead of seeking justice. Criminals know this and take advantage of the gaps in enforcement.

CORCA aims to close those gaps. It would make reporting easier and give law enforcement better tools to investigate and prosecute these crimes.

Why Cargo Theft Is Now a Cost of Doing Business

For many trucking companies, fighting cargo theft is just part of doing business. Investments in security, technology, and fraud prevention services are costly. Smaller carriers struggle to keep up.

Lemm warned lawmakers that without action, these crimes will continue to grow. The trucking industry moves 72% of all freight in the U.S. About 80% of communities rely solely on trucks for their goods. Protecting the supply chain from cargo theft is a national issue. It affects not only the trucking industry but also the safety and security of everyday Americans.