The trucking industry takes great pride in delivering America’s freight safely and on time; however, the billions of tons of goods transported by trucks from coast to coast have increasingly become a prime target for organized crime rings, including transnational organizations.
This week, Ӱɴý President and CEO Chris Spear testified before a House Judiciary Subcommittee to urge Congress to take decisive action to combat this rapidly escalating crisis. This was the ninth time Ӱɴý has been invited to speak on Capitol Hill this year.
In his remarks to lawmakers, Spear revealed how these thieves structure their criminal operations, explained the real-world impact on Americans and on the supply chain, and called for passage of the Combating Organized Retail Crime Act (CORCA).
Cargo Theft is Raising the Cost of Living
, cargo theft costs the trucking industry $18 million per day. Across the supply chain, cargo theft is estimated to cost up to $35 billion annually.
Motor carriers not only have to replace stolen products, but shoulder higher insurance premiums and invest in new security measures. These added expenses put jobs and businesses at risk. And those elevated costs for fleets are felt by consumers at the store.
Cargo Theft is Evolving
There are two categories of cargo theft, straight theft and strategic theft.
Straight theft has been around since trucks have been on the road a century ago. It involves the physical theft of cargo from a distribution center or the back of a truck. Crews will stalk tractor trailers and strike when they are stopped at a rest area or even a traffic light, putting truck drivers and other essential supply chain workers directly in harm's way.
In contrast, strategic theft involves the use of advanced cyber tactics and identity theft to trick shippers, brokers, and carriers to divert and hand over their loads. This high-tech form of cargo theft has become a digital renaissance for thieves, surging 1,500 percent since 2021.
Cargo Theft is International in Scope
Economic security is national security. The unfortunate reality is that America's national security has been compromised because transnational criminal organizations have successfully infiltrated our domestic supply chains and exploited enforcement gaps in the stream of interstate commerce. Proceeds from stolen goods finance other criminal activities, including drug trafficking, organized crime, and even potentially terrorism.
In just one example cited by Spear, a shipment of high-end refrigerators was stolenfrom one of Ӱɴý’s members in St. Louis. The local police filed a report but declined to investigate further. Several months later, federal agents with the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives stumbled across the refrigerators when they raided a warehouse as part of an unrelated investigation. The appliances were being stuffed with U.S. drug profits before being sent back across the southern border.
Ultimately, what the under-resourced local police department had dismissed as a simple insurance matter turned out to be a pivotal piece of a Mexican cartel's operation.
Local Law Enforcement Lacks the Resources and Jurisdiction to Respond to Cargo Theft
Trucking is interstate by nature, which means the thieves targeting the cargo that our industry hauls are interstate as well. When cargo thieves strike, it can be difficult for motor carriers to report it because it is sometimes impossible to know precisely where the crime originated or occurred, particularly when thieves use complex digital tactics to perpetrate attacks and cover their tracks.
State and local governments often lack the resources and the legal jurisdiction to adequately investigate cross-border crimes. Only the U.S. government is equipped with the resources and the constitutional authority to pursue criminals across state and international lines.
Cargo Theft Affects Motor Carriers Both Large and Small
Over 90 percent of motor carriers are small businesses operating 10 trucks or fewer. Yet fleets both large and small are forced to compete in an arms race, trying to match the formidable technological capabilities of sophisticated criminals who are often based overseas.
The companies on the front lines of this battle are investing enormous sums to harden their IT systems, but it is impossible to keep up with this ever-evolving threat. Additionally, even when motor carriers can accumulate evidence of hackers and stolen shipments, they often face road blocks when they attempt to report it to the proper authorities.
Until there is a coordinated approach led by federal law enforcement, motor carriers will be locked in an endless game of “whack-a-mole,” and emboldened cargo thieves will continue to operate with impunity.
Fighting Cargo Theft Requires a Team Effort
Motor carriers invest millions of dollars every year in multilayered security, including guards, surveillance equipment, vehicle barriers, tracking technology, cybersecurity, engine immobilizers, and SOS buttons for drivers. Without a backstop from federal law enforcement, however, trucking companies are left battling this scourge on their own
To the maximum extent possible, the trucking industry works with state and local law enforcement. But as Spear explained to Congress, what is missing is the federal piece of the puzzle. Better information sharing will help reveal the bigger picture and dismantle criminal networks.
Congress Must Pass CORCA to Combat Cargo Theft
Ӱɴý strongly supports the enactment of the Combating Organized Retail and Crime Act.
This legislation would provide law enforcement with the tools and enhanced legal frameworks to combat this highly complex national and international threat.
CORCA would centralize data and coordination – federal, state, local, and industry – and proactively unravel schemes orchestrated by transnational criminals.