2023-07-20 19:48:30
CargoNet claims that theft of goods in Canada and the United States increased by 57% during the second quarter, compared to the same period last year, as strategic and organized theft continues to spread in the industry.
Recently, Greater Toronto Area Police officers arrested 15 members of an organized crime group and recovered $9.24 million worth of stolen merchandise, tractors and trailers in Peel Region.
“The theft of goods and vehicles is not a victimless crime. It hurts people, inflicts financial damage and often leads to the funding of other criminal activities,” said Nick Milinovich, Deputy Chief of peel regional police (PRP).
According to’CargoNet Q2 2023 Supply Chain Risk Analysisthe 582 thefts recorded during this period cost the industry more than $44 million, with the average value of stolen cargo estimated at nearly $261,000, an increase of nearly $100,000.
This increase is due to thieves focusing on high-value cargo and more misdirected shipments, where thieves are using the stolen identities of carriers and logistics brokers to redirect cargo from legitimate recipients.
(Illustration : CargoNet)
The theft of a loaded transport vehicle, for example a loaded trailer, also increased by 17% in one year. This type of theft is most common in California, Texas, Florida and Illinois. But this type of activity was also strong in the New York and Philadelphia areas during the second quarter.
Burglaries of loaded vehicles have decreased thanks to the recent intervention of law enforcement. However, high value cargo traveling the I-40 corridor through Arizona, California and New Mexico is still at great risk.
While California, Illinois and Texas account for 51% of all stolen goods, CargoNet reports that California and Illinois have also seen an increase in extortion and conversion schemes by organized crime groups.
“These groups focus on obtaining shipments from logistics brokers, adding additional and often exorbitant fees for a variety of trumped up reasons, such as overweight tickets or past tariff penalties imposed on unaffiliated motor carriers. Law enforcement in such cases is complex and rare, which has emboldened organized groups,” the report reads.
False pickings
On a yearly basis compared to the second quarter of 2022, 127 additional cases of fake pick-ups were recorded, with thieves posing as licensed drivers. Although the Los Angeles metropolitan area is the most affected by this type of crime, it occurs throughout the United States.
Although 39 different product categories have been targeted, the thieves are focusing on beverages – alcoholic and non-alcoholic – particularly energy drinks and soft drinks. Solar power generation equipment and automotive supplies, from oils and tires to spare parts and fluids, are also popular with criminals.
The false picking technique has become a major problem for Maricopa County (Arizona), Travis and Chambers counties (Texas), and DeKalb County (Georgia), due to the nature of their local industries.
To avoid false pickings, shippers and logistics brokers should verify carrier quotes using the contact information of the Federal Motor Carrier Safety Administration (FMCSA) on file, and double check the shipper and driver names instead of once.
“Motor carriers should be wary of new customers who blindly ask them to transport a load to an address different than the one on the bill of lading, especially if it is a public warehouse or transshipment in California,” CargoNet warns.
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