industry insights

Cargo theft continues to surge across the U.S., as criminal groups blend old-fashioned opportunism with increasingly sophisticated, technology-driven schemes.

“They’re being smarter about it. There is more cyber awareness around freight and how it is moving, and they are interjecting themselves into the process earlier” said Scott Brunner, vice president of corporate security for Penske Transportation Solutions.

CargoNet’s annual incident analysis found that cargo theft in 2024 increased by 27% over the previous year, and the average value per theft increased to $202,364. According to new research released by the American Transportation Research Institute, theft is costing the freight transportation industry $18 million each day and as much as $6.6 billion annually in direct and indirect losses.

The Rise of Strategic Theft

Thieves are becoming more strategic and targeting high-value loads. Criminal groups are leveraging digital tools to obtain granular shipment details, including the specific brokerage handling the shipment, the assigned motor carrier, and the names and contact information of individual points of contact at both the brokerage and carrier level.

By using the correct names, company details and shipment specifics, criminals establish credibility that can allow them to redirect shipments to fraudulent addresses without ever being tendered the shipment.

“In the past, criminals might show up with fraudulent paperwork to pick up a load. Now, they are compromising shipper or carrier systems, impersonating legitimate companies, and dispatching unsuspecting drivers who may have no idea they are participating in a theft,” said Scott Kirsch, director of loss prevention for Penske Logistics.

One way to minimize the risk of freight being redirected is to confirm the delivery address with the driver picking up the load during the check-in process. “Look at the delivery address on the bill of lading and let them know they are only to deliver to that address and that they should not be rerouted for any reason,” Kirsch said.

Brunner noted that criminals are also creating legitimate-looking trucking companies with the sole purpose of picking up and stealing freight. “They’re creating these contract companies and picking up the cargo before it hits the road,” he explained.

Brunner recommends having the right processes in place to vet carriers and shipping partners, starting with using government and industry sources to verify the business is legitimate, has the appropriate operating authority and licensing, and has a strong safety and compliance history.

When vetting carriers, it is important to look for anomalies. “If a carrier is using a P.O. Box, run that P.O. Box number because you might find 10 to 12 carriers using it. If that is the case, they are either stealing identities or registering companies to commit a crime,” said Keith Lewis, vice president of operations for CargoNet.

While vetting carriers and checking paperwork before releasing a load takes time, Brunner said it is important. “Sometimes you just need to slow down, take a breath, and make sure you have all of your I’s dotted and T’s crossed to prevent the criminal entities from getting a foothold in the process,” he said, adding that strong communication internally and with vendors and partners is also essential.

Traditional Theft Methods Persist

While theft-by-deception schemes grab headlines, traditional methods still account for a large share of incidents. CargoNet found that trailer burglaries and full-trailer theft continued at elevated levels throughout 2024.

Unlocked trailers are targets for pilferage, with thieves opening a trailer, quickly removing a few cases or cartons, and closing it again. “Cargo at rest is cargo at risk. Something as simple as a hardened lock—not just a plastic seal—can make the difference between being targeted or being skipped,” said Aaron Henderson, vice president of loss prevention, food safety and safety at Penske Logistics.

Opportunistic thieves sometimes follow drivers leaving a pickup location, waiting for them to stop shortly afterward. Drivers, especially those handling high-value loads, should be prepared to drive a substantial distance, often around 200 miles, before making their first stop. “Be rested, be ready to go and have enough hours of service available,” Henderson said.

Strategies To Reduce Theft

Henderson recommends a layered, risk-based security strategy based on the commodities being transported rather than a one-size-fits-all approach. For lower-risk loads, locks and smart routing can be enough while high-value, frequently targeted commodities may require higher-tech solutions, such as tracking devices embedded in the freight, making them harder to locate and disable.

“On certain commodities, live tracing is valuable. We'll watch a load leave point A and watch it all the way to point B to make sure it's delivered on time,” Henderson said.

Additional technology-based safeguards include alarms on tractors and trailers and, in some cases, ignition modules that require a specific code before the truck can be started.

If a theft occurs, the first step is to contact law enforcement, and acting fast is critical. ATRI reported that 74% of stolen goods disappear forever.

Increasingly, stolen freight is exported rather than fenced in the U.S. “In years past, most of the freight stolen in the U.S. was then fenced in the U.S. That has flipped, Kirsch said. “If you don’t get it recovered quickly, it is probably getting loaded onto a container ship and heading to somewhere it will never be seen again.”

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Rising costs, labor shortages and a challenging operating environment have put immense pressure on fleets to optimize operations and increase efficiency. Benchmarking is a vital tool for companies to compare their performance and critical metrics to industry standards and similar operations to uncover opportunities for improvement and gain a competitive advantage.

Metrics To Monitor Include:

Fuel Efficiency: When even pennies per gallon add up, the cost savings from increasing fuel economy and minimizing fuel consumption become significant. Benchmarking fuel costs can help fleets determine if they’re above the industry average and then delve into contributing factors, such as driver behavior, poorly maintained vehicles or the wrong vehicle specs, and implement corrective measures.

Fleet Utilization: Fleet utilization — the extent to which trucks or trailers are being used relative to their total capacity or availability — is a key performance metric in transportation and logistics. Reviewing utilization rates can help maximize efficiency and reduce operational costs.

Maintenance Costs and Effectiveness: Effective maintenance reduces unexpected breakdowns, extends vehicle lifespan and ensures compliance with safety regulations. High maintenance costs or frequent breakdowns may indicate inefficient processes or the need for vehicle replacement. Metrics could include breakdowns per 100,000 miles and average vehicle downtime.

Cost Per Mile: Fleets’ average cost per mile includes all operating expenses, including fuel, maintenance, insurance, driver wages and overhead. The cost per mile can vary by truck or operating area. Tracking it and comparing it to industry averages or competitors can help identify trends in operational expenses, allowing fleets to dig into and correct issues that may be driving it higher. Knowing the cost per mile is also critical for setting rates.

Empty Miles: Empty miles represent lost revenue opportunities and higher operational costs due to unnecessary fuel usage and vehicle wear. Reducing empty miles improves profitability and resource utilization. Solutions can include optimizing routing and dispatching or sourcing backhauls.

Revenue Per Truck: Measuring total revenue generated by each truck over a specific period can help fleets uncover performance disparities, identify underperforming assets or operations, and determine which areas to optimize.

Driver Turnover: High turnover increases recruiting and training costs, disrupts operations, and can negatively affect customer service. Monitoring turnover helps fleets identify and address issues related to driver satisfaction.

​Benchmark Effectively

Historically, the freight industry has relied on static forecasting and metrics, such as static KPI reporting and comparisons of the fleet to static industry averages. There are several valuable industry reports, including the National Private Truck Council’s Benchmarking Survey, American Trucking Association’s (ATA’s) Driver Compensation Study, and the ATA Technology & Maintenance Council’s North American Service Event Benchmark Report.

While these reports are valuable, they limit fleets’ ability to create benchmarks that are exactly matched to their operations. Fleets are inherently distinct. They operate in all kinds of conditions. They are spec'd differently, and there are different kinds of vehicles, which means it can be challenging to get an apples-to-apples comparison using reports alone.

Penske’s fleet benchmarking tool powered by Catalyst AI™ allows fleet managers to measure key performance indicators and compare their fleets to create comparisons to their own fleet over time, while creating dynamic comparisons to similar operations and equipment. It looks at comparisons across fuel efficiency and vehicle utilization.

Catalyst AI leverages artificial intelligence, advanced machine learning algorithms and Penske’s rich data set to enable fleet managers to evaluate true fleet performance, allowing them to gain accurate, real-time fleet comparisons and make decisions with greater precision and accuracy.

It processes 57 billion data points, with 200+ million new data points added to the fleet dataset daily. It also synthesizes thousands of variables into digestible key performance indicators and diagnostic metrics, helping fleets uncover the root cause of their performance. More than 300 models run simultaneously to deliver the insights and actions that help drive real change and impact

Try Catalyst AI for free today.

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