Cargo theft is an escalating global concern that is disrupting supply chains and causing significant financial losses for businesses.
In 2024 alone, reported cargo theft incidents in the United States and Canada surged by 27%, with an average loss of $202,364 per incident. As criminal tactics evolve, companies must adopt proactive measures to safeguard their shipments.
Azure Risk, a trusted business insurance broker, provides comprehensive risk management solutions for your businesses. We are helping everyone across the Asia Pacific region mitigate cargo theft and ensure operational resilience.
To dive deeper into this topic, keep reading and uncover more!
What Is Cargo Theft?
Cargo theft refers to the unlawful taking of goods during transit or from storage facilities. Criminals use various methods, from hijacking trucks to falsifying shipment documentation and infiltrating warehouses. High-value industries such as logistics, transportation, and retail remain prime targets of this crime.
It comes in two primary forms, which are
1. Straight Cargo Theft
This one is a major threat to businesses like recycling plants and warehouses, as it involves stealing unattended goods directly from storage areas.
Thieves exploit security gaps, targeting exposed items for quick resale. To prevent this, companies can install electric fencing for physical deterrence, shock protection, and alarm systems to alert staff of unauthorized access. These measures reduce the chances of opportunistic theft by blocking criminals from entering in the first place.
2. Strategic Cargo Theft
Strategic cargo theft is more calculated than straight cargo theft and involves exploiting supply chain vulnerabilities. Criminals often use fake IDs or impersonate legitimate businesses to deceive carriers, brokers, and shippers into releasing valuable goods.
Timing their schemes close to critical deadlines, they rely on employee haste to create opportunities for theft. To counter this, businesses need advanced security measures like perimeter systems with video surveillance. Retaining footage helps analyze thefts, revealing criminal tactics, and improving future security protocols.
Standard Methods of Cargo Theft
Here are several standard methods typically used by cargo thieves:
- Hijacking: Criminals forcibly take control of shipments in transit.
- Deception: Fraudulent actors pose as legitimate transporters to divert cargo.
- Warehouse Theft: Poorly secured storage locations become prime targets.
- Cyber Attacks: Digital fraud manipulates shipment data to misappropriate goods.
Also Read: Top Benefits of Cargo Insurance for Your Business
When Is Cargo Theft Most Likely?
This crime tends to occur more frequently under certain conditions, for example:
1. Holiday Periods
Major holidays like Christmas and New Year’s often lead to increased cargo shipments, making these times prime targets for theft. The busy nature of these periods can cause lapses in security, creating opportunities for criminals.
2. Nighttime
The risk of theft is significantly higher during the night when visibility is reduced and fewer people are present to deter criminals. Isolated areas with little surveillance are especially vulnerable during these hours.
3. Weekdays
Data from the National Insurance Crime Bureau (NICB) shows that most cargo thefts happen on weekdays, particularly Mondays and Fridays. In 2017, of the 8,676 reported thefts, 6,752 occurred on these two days, while weekends saw fewer incidents.
However, as of February 2025, a report by Overhaul, a supply chain risk management company, revealed that the total volume of cargo thefts in the United States increased by nearly 50% in 2024 compared to the previous year.
The report noted that approximately 60% of these thefts occurred in the latter half of the year, highlighting persistent vulnerabilities in cargo security during these periods.
Causes of Cargo Theft
1. Lack of Security Measures
Insufficient surveillance, GPS tracking, and access control systems make shipments vulnerable. Companies without comprehensive security protocols face higher risks of cargo theft.
2. Economic Motivation
The resale value of stolen goods continues to drive organized crime. In 2024, electronics accounted for 23% of all cargo theft cases, highlighting the appeal of high-demand items to criminals.
3. Insider Involvement
Weak background checks and minimal internal oversight enable insider threats, where employees or contractors facilitate cargo theft.
Most Stolen Cargo
The most stolen cargo items vary by region and market trends, but specific categories consistently top the list due to their high value and demand, such as:
1. Electronics
As we mentioned before, electronics remain more vulnerable to cargo thieves. Smartphones, laptops, tablets, and gaming consoles are prime targets due to their portability and resale value. According to Security Info Watch, electronics accounted for 23% of all cargo thefts.
2. Food and Beverage
Perishable goods like food and drinks are often stolen for quick resale or consumption. CargoNet reports a rise in food and beverage thefts in recent years.
3. Household Goods
Items like appliances and furniture are common targets, too, especially during peak demand seasons like holidays.
4. Automotive Parts
High-value car parts like engines and transmissions are easy to sell on the black market. Therefore, these items require enhanced protection throughout their shipment process.
5. Luxury Goods
Jewelry, watches, and organized crime syndicates frequently target designer clothing worldwide.
6. Pharmaceuticals
Prescription drugs, especially opioids, are highly valuable and can be sold for a significant profit on the black market.
Consequences of Cargo Theft
1. Financial Losses
Cargo theft leads to substantial monetary losses, including replacing stolen goods, higher insurance premiums, and costly security upgrades. According to Fox Business, in 2024, cargo theft losses exceeded $454 million only in the US and Canada.
2. Reputational Damage
Frequent cargo theft incidents can erode customer trust, damage supplier relationships, and impact long-term business success.
Learn More: Carrier Liability vs. Cargo Insurance, What Sets Them Apart?
3. Legal and Compliance Issues
Failure to implement adequate security measures may lead to regulatory penalties, legal liabilities, and increased scrutiny from authorities.
Prevention Strategies for Cargo Theft
Your businesses must adopt robust prevention strategies to safeguard valuable assets and minimize financial losses.
Strong security measures such as:
1. Implementing Advanced Security Systems
Surveillance cameras, GPS tracking, and smart locks enhance shipment security. According to PR Newswire, companies using real-time tracking solutions report a 99.9% delivery success rate for monitoring shipments, especially electronics, pharmaceuticals, and automotive parts.
2. Employee Training and Vetting
Security awareness training and stringent background checks reduce insider threats and ensure employees remain vigilant. Educating your staff on recognizing suspicious activity and securing sensitive cargo, especially for pharmaceuticals, can also prevent this crime.
3. Working with Trusted Brokers and Insurers
Azure Risk provides tailored insurance solutions that protect businesses from cargo theft losses, guaranteeing business continuity and risk resilience. Connect with us!
4. Technology Integration
Utilizing RFID tags or smart sensors for tracking and monitoring the condition of the cargo can help your business ensure the safety of valuable items like electronics and luxury goods.
5. Enhancing Supply Chain Visibility
Integrated digital tracking systems improve transparency, allowing businesses to detect irregularities in real-time and respond proactively.
6. Seals and Locks
Tamper-proof seals and high-security locks can help secure containers, particularly for luxury goods and food & beverage shipments.
These measures, combined with vigilance at every stage of the supply chain, can help safeguard these high-risk cargo items.
Also Read: What is Project Cargo Insurance?
Cargo theft remains a significant challenge, but your businesses can mitigate risks through strategic security investments, employee diligence, and expert risk management solutions. Protect your shipments with a proactive risk strategy by contacting Azure Risk, the Official Asia Pacific Broker for World Insurance. This will safeguard your supply chain and ensure peace of mind.
