The Truth About Cargo Theft and Why New Laws Are Needed

Senate Investigates Cargo Theft Crisis

Cargo theft is a growing problem in the U.S. supply chain. Criminals are stealing goods at an alarming rate. This theft is costing businesses and consumers billions of dollars each year.

To address the issue, the Senate Surface Transportation, Freight, Pipelines, and Safety Subcommittee held a hearing on February 27, 2025. The hearing was called “Grand Theft Cargo: Examining the Costly Threat to Consumers and the U.S. Supply Chain.” Lawmakers and industry experts gathered to discuss why cargo theft is rising and what can be done to stop it.

Cargo Theft on the Rise

Cargo theft has increased by 1,500% since 2021. Experts estimate that these crimes cost the economy up to $35 billion per year. Criminals use many different methods, including:

• Identity fraud – Thieves pretend to be legitimate trucking companies.
• Double-brokering scams – Fraudsters pose as brokers and steal loads.
• Freight hijacking – Criminals take entire shipments.
• Train robberies – Gangs steal cargo from railcars.

Senator Todd Young (R-Ind.) led the hearing. He warned that criminals from the U.S., Armenia, Colombia, and Mexico are behind many of these crimes. These groups are not just stealing goods. They are also funding drug smuggling and other illegal activities.

“The increased threat of strategic cargo theft is threatening our supply chains and hurting American businesses and consumers,” Young said.

Trucking Company Owner Shares His Story

One of the key witnesses was Adam Blanchard, CEO of Tanager Logistics and Double Diamond Transport. He shared how cargo thieves targeted his business.

Blanchard explained that criminals created a fake version of his company online. They used it to steal loads and scam trucking companies. One shipment of energy drinks worth six figures was rerouted more than 1,000 miles from where it was supposed to go.

His business suffered because of the fraud. “About a year ago, our American Dream turned into a nightmare when some unscrupulous criminals stole our identity,” Blanchard said.

When he tried to report the crime, he hit dead ends. “We sought to report these crimes, but kept hitting dead ends,” he told lawmakers. “The message was clear: you are on your own.”

Industry Calls for Federal Action

Blanchard and other industry leaders urged Congress to take action. They recommended several key steps:

• Make FMCSA remove fake trucking companies from its website.
• Pass the Safeguarding Our Supply Chains Act. This law would create a federal task force to fight cargo theft.
• Pass the Household Goods Shipping Consumer Protection Act. This law would increase penalties for fraud.

Blanchard said that criminals see trucking as an easy target. He urged Congress to change that. “Currently, criminals view trucking as a low-risk, high-reward target. We must invert that calculus,” he said.

Bipartisan Support for Solutions to Cargo Theft Rise

Senator Gary Peters (D-Mich.), the subcommittee’s ranking member, agreed that cargo theft is a serious issue. He stressed that stopping these crimes is not a partisan issue.

“I don’t believe that these issues—law enforcement or addressing cargo theft—should be partisan in any way,” Peters said.

Lawmakers are considering new laws to stop these crimes. One bill, the Household Goods Shipping Consumer Protection Act, would give FMCSA more power to investigate fraud in the trucking industry.

Senator Deb Fischer (R-Neb.) supports this bill. She stressed that cargo theft is a threat to businesses and consumers alike. “We cannot allow bad actors in the shipping and moving industry to violate consumer trust and harm our nation’s supply chain,” she said.

Cargo Theft Hurts the Economy

Cargo theft affects the entire economy, not just trucking. The American Trucking Associations (ATA) has made fighting theft a top priority.

The ATA wants lawmakers to create a Supply Chain Fraud and Theft Task Force. This group would improve security and increase enforcement.

ATA Chairman Dennis Dellinger stressed that stronger laws are needed. “Investing in freight infrastructure, enacting thoughtful federal safety and environmental regulations, growing the supply chain workforce, and protecting entrepreneurship are all areas where our supply chains can benefit from congressional action,” he said.

What’s Next?

Congress is expected to include cargo theft prevention in the next federal transportation bill. Senator Young has promised to push for stronger law enforcement and better coordination between federal agencies.

“Congress must provide agency guidance and resources to combat criminals who are exploiting small businesses that families spent years, decades, or even generations to build,” Young said.

Industry leaders hope that bipartisan support will lead to better enforcement, more protection for trucking companies, and lower costs for consumers.

The Senate will continue working on new laws to stop cargo theft and strengthen supply chain security.