A New Supply Line Concern — Cargo Theft

This is what happened in the supply chain in the United States and Canada in the second quarter of 2023.

582 thefts

Top targets

1. Warehouse & distribution centers

2. Parking lots

Top targeted commodity type

1. Food & beverages

2 Electronics

Total loss value: $44,840,189

The information above comes from Verisk’s CargoNet. It’s a 57% increase in thefts when compared to 2022’s second quarter.

CargoNet’s vice president of operations, Keith Lewis said thieves mostly focus on high value products. The biggest percentage of thefts is when thieves use a stolen motor carrier and logistic broker identities to misdirect freight delivery to a location that makes it easy for them to steal.

Most of the Over $44 million in losses average $100,000 to $260,000 per incident.

“Freight moves almost like online dating. You match your type of equipment up with the type of load looking for a destination, and in one click the load is awarded to you if you meet the broker’s criteria,” Lewis said. “The frauds are committed when they pick up the load. It’s not the distribution centers that are vulnerable; it’s the way the loads are moving.”

CargoNet says thieves targeted 39 different product categories in the second quarter of 2023. They are:

  • Alcoholic beverages
  • Non-alcoholic beverages, mostly soda and energy drinks
  • Solar power energy generation equipment
  • Autos
  • Auto supplies — parts, fluids, oils, tires

The biggest percentage of cargo thefts are in California, Texas and Arizona.

Source link: Insurance Journal — https://bit.ly/3sf4ObK

Source link: Insurance Business America — https://bit.ly/3YALO3q

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