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Cargo theft hit a record high in the U.S. and Canada for the second consecutive year, and the trend is expected to continue as criminal enterprises have become more sophisticated in their methods.
Verisk CargoNet’s annual analysis released this week found that cargo theft surged 27% from 2023 to 2024, hitting a record 3,625 reported incidents last year with an average value of $202,364 per theft. All told, the losses are estimated at more than $454 million.
Cargo theft hit a record high in the U.S. in 2024 according to CargoNet, which expects the trend to continue. (CargoNet / FOXBusiness)
The study found California and Texas saw the greatest surge in theft activity, with heists jumping 33% in the Golden State and an eye-popping 39% in the Lone Star State.
Trailer burglaries and full trailer theft continued at elevated levels, particularly in major metropolitan areas, including Los Angeles, Dallas-Fort Worth, Atlanta and New York City, according to the findings. Dallas County, Texas, led with a 78% spike in reported incidents. Los Angeles County, California – traditionally a high-activity area – saw a 50% increase.
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CargoNet reported notable shifts in the type of goods stolen last year, too. While 2023 saw frequent theft of engine oils, fluids, solar energy products and energy drinks, 2024 marked a strategic pivot by criminal enterprises. New targets included raw and finished copper products, consumer electronics and cryptocurrency mining hardware.
Cargo theft surged to another record high in 2024. (iStock / iStock)
The analysis also revealed increased targeting of specific consumable goods, including produce like avocados and nuts, along with personal care products ranging from cosmetics to vitamins and supplements, especially protein powder.
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CargoNet Vice President Keith Lewis explained in an interview that there are two major types of cargo theft: The first is the traditional method of thieves stealing directly from a truck or train, and the other method is through fraud, which often involves manipulating online shipping exchanges to redirect entire loads using false information like fake companies.
He said that cargo theft – often conducted by criminal enterprises overseas – is up by a staggering 1,445%, while traditional theft is up by around 20%. Since the COVID-19 pandemic began, he explained, cargo theft overall is up by some 90%.
A cargo ship and tugboat sail through the Cocoli Locks at the Panama Canal, in Panama, on August 12, 2024. Lewis says one rising method of cargo theft involves criminals redirecting shipments using fraud. (Arnulfo Franco/AFP via Getty Images / Getty Images)
Lewis, a former state police officer, says that federal law enforcement does not have the resources to adequately address the issue, so the burden of solving it falls back on the logistics industry to come up with solutions.
“But solutions cost money, and that’s the pushback,” he told FOX Business. “And also, when you change the way we’re moving freight, you slow down the supply chain. And when you slow down the supply chain, that could possibly cripple the infrastructure. It also generates a higher cost of moving goods.”
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Meanwhile, the surge in thefts is contributing to higher prices for everyone.
“Everybody’s paying for this now,” Lewis said. “The rates go up, the insurance goes up, the costs go up, the freight rates, what I’m charging the shipper goes up. The shipper takes that and puts it back in their cost, and they raise the price, and you and I pay for it every time we make a purchase.”
