The good news: During the first quarter of 2018, the number of cargo thefts in U.S. and Canada dropped 23% year-over-year.
The bad news: cargo theft is still costing U.S. businesses billions of dollars, and experts agree that it’s most likely under-reported. Trucking Insurance Costs are, of course, impacted by all forms of cargo theft.
What is Cargo Theft?
The FBI defines cargo theft as “The criminal taking of any cargo including, but not limited to, goods, chattels, money, or baggage that constitutes, in whole or in part, a commercial shipment of freight moving in commerce, from any pipeline system, railroad car, motor truck, or other vehicle, or from any tank or storage facility, station house, platform, or depot, or from any vessel or wharf, or from any aircraft, air terminal, airport, aircraft terminal or air navigation facility, or from any intermodal container, intermodal chassis, trailer, container freight station, warehouse, freight distribution facility, or freight consolidation facility.”
There are Several Types of Cargo Theft Including…
- Theft of a full truckload that may also include the theft of the trailer, truck, or storage container.
- Theft of goods from a warehouse or facility storing goods.
- Pilferage – the theft of a few pieces or a small quantity of a relatively large shipment. Experts believe that this is one of the more under-reported types of cargo theft.
- Fictitious pickup – Technology was responsible for an increase in this type of theft that includes the use of deception such as using aliases to divert or steal cargo.
- Hijacking – Taking control of a truck and its cargo. This form can be dangerous to drivers and carries more severe criminal penalties.
Cargo Theft Statistics
According to CargoNet®, there were 159 events involving cargo theft reported in the first quarter of 2018– a drop of 23% year-over-year. The average value also dropped from $164,185 in the first quarter of 2017 to $90,883 per event in the first-quarter of 2018. Sounds good for lowering trucking insurance costs, right?
An increase in successful law enforcement investigations is attributed for much of the decline in cargo thefts. For example, New Jersey State Police now have specialized cargo theft units working with local and county law enforcement agencies.
The food and beverage industry is still the hardest hit with nonalcoholic beverages being the most stolen kind of food and beverage freight. Household cargo was the second and electronics cargo (up 64% year-over-year) was the third most stolen commodity.
Timing of Cargo Thefts
Most cargo thefts occur on the weekend. According to Keeptruckin.com, in 2017, 19 % of all cargo thefts occurred on Friday, 17% on Saturday, and 16% on Sunday. 37% of those thefts happened when the cargo was left unattended for multiple days without electronic tracking.
High Risk States
The three states with the highest number of cargo thefts are California, New Jersey, and Texas, which is no surprise because California and New York contain the three largest container ports in North America and Texas is at the center of cross-border freight.
Preventing Cargo Theft
Prevention is always the best line of defense when it comes to theft. Here are five tips to help prevent cargo theft.
- Driver awareness – A driver should be aware of his or her surroundings. Before getting back in the truck after a stop, they should walk around the vehicle to see if anything looks amiss. If a theft has occurred, there’s a better chance of catching the thief if law enforcement knows where it happened.
- Keep the cargo moving – Many thefts occur at rest stops, so if you can keep the load moving, there are fewer opportunities for thieves. For example, driver teams and mileage minimums can reduce the number of stops and keep the cargo moving.
- Tail-to-tail parking – This is such a simple approach. Whenever possible, drivers should park trailers back-to-back or tail-to-tail when parked at a rest stop to block the entrance to the trailer.
- Utilize electronics – More trucking companies are using things like GPS tracking devices and geofencing apps to protect their cargo. CargoNet has a tool that – RouteSearch – that is supposed to be able to identify theft risk by route. There’s even technology that can remotely shut down a stolen vehicle. If you can’t or don’t want to invest in technology, padlocks and kingpin locks can also help deter thieves.
- Know the “hot” spots, times, and cargo – When you’re in California, New Jersey, or Texas, be extra careful, when traveling on the weekend be extra vigilant, and when transporting food items or electronics, be more cautious.
Protecting Your Business with Cargo Insurance
Cargo Insurance is often covered by transportation insurance policies, but it’s important to make sure it’s there and to make sure you have enough coverage for whatever you’re hauling. Practicing these preventative tips can reduce the number of thefts and reduce your risk, which often translates into lower insurance premiums.
How to Get the Right Insurance Coverage for Your Trucking Operation
To learn more about saving on all types of truck insurance, contact American Insuring Group at (800) 947-1270 or (610) 775-3848 or contact us online.
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