There was a 20% jump in reported cargo thefts last year. The most common locations for these thefts are parking lots and truck stops, as thieves take advantage of drivers’ needs to sleep or take a break from the road. In many cases, it’s not just the cargo that’s missing but the whole trailer, and criminal rings have been responsible for more than $150 million in stolen product in some states. Other emerging risks include the falsification of loads by employees and the fraudulent dispatch of loads through cyberattacks. In these cases, drivers are being deceptively rerouted by hackers or brokers with fraudulent information to deliver and leave the cargo at the wrong destination.
True stories: A freight carrier booked a shipment of solar panels with an unknown party who was pretending to be the insured party. The fraudulent party picked up the load in California, which was supposed to be delivered to Utah, but stole the load instead. A claim was submitted to the insured for $141,000, but since the insured never had possession of the shipment, it was not covered.
In another incident, a semi, along with the two lowboy trailers being hauled, was stolen when the driver left the items parked at a motel over the weekend. The policy covered up to $100,000 for the stolen goods, but the value of the two lowboy trailers was estimated at $181,610. No suspects were ever located, and the lost items were never recovered. The fleet company was responsible for the difference.
Best Practices for Avoiding Theft
Companies can implement defensive measures to mitigate losses in these situations while still providing drivers’ much needed rest for safety.
These tactics can include tracking devices such as portable GPS devices to track and locate stolen vehicles and trailers, or cargo tracking that uses cell phone technology for high-value items. While these tools can be costly, expenses can be minimized by adding trackers to a select number of products, as criminals typically steal in batches.
Strong employment practices can also help fight theft. With more experienced and trusted drivers and planned routes that avoid red zones and high-crime rate areas, you can better protect a load from potential theft. Good hiring and training practices should extend to dispatchers, load planners, warehouse, and dock workers.
Source: IAT Insurance Group
