DOT launching crackdown on cargo theft

Data collection will be used to coordinate with law enforcement

DOT wants to close loopholes used by fraudsters in trucking. (Photo: Jim Allen/FreightWaves)

WASHINGTON — The U.S. Department of Transportation has issued an information request aimed at combatting the growing theft and fraud that has been driving up costs in freight markets.

“Although law enforcement agencies and industry stakeholders track incidents, reporting is fragmented and inconsistent, and national-level visibility is limited,” DOT stated in its request titled, “Protecting America’s Supply Chain from Cargo Theft,” published on Thursday.

“DOT is uniquely positioned to improve coordination across modes, support data collection, and strengthen resilience by working with law enforcement, industry, and Federal partners.”

The department breaks the issue down into two general categories: “straight thefts” involving stolen trailers and containers or theft of parked trucks at truck stops, marine terminals and distribution centers, and “strategic theft networks” involving fraudulent carriers, staged diversions, cyber-enabled thefts, and insider collusion.

“Both categories create significant economic losses, disrupt supply chains, and in some cases fund broader illicit activities such as narcotics trafficking, counterfeiting, and human smuggling,” DOT stated.

DOT said it may use the responses it receives to “identify and close loopholes that allow carriers or transporters removed from service to re-enter operations under different names or affiliations.”

A recent webinar hosted by the Travelers Institute highlighted data from CargoNet revealing that cargo theft spiked by more than 90% from 2021 to 2024, with the average cost of a stolen load exceeding $200,000.

The problem is significant enough to have led to several hearings on Capitol Hill within the last several months, the latest held on July 15. An executive with an intermodal logistics company told lawmakers at the hearing that cargo theft at her company has exploded from five incidents in 2021 to 876 in 2024.

“We’re talking about hundreds of thousands of dollars stolen in incidents across the United States with no resolution,” said Donna Lemm, the company’s chief strategy officer, testifying on behalf of the American Trucking Associations.

DOT acknowledged in its information request that cargo theft at marine terminals and during vessel-truck-rail transfers “present a particular challenge due to the high volumes and values of goods moving through U.S. ports.”

DOT is seeking data and comments within five stakeholder categories:

General

  • What are the most significant cargo theft risks facing the U.S. supply chain today (e.g., opportunistic thefts, organized theft rings, insider threats, cyber-enabled diversion)?
  • How do these risks vary across trucking, rail, marine, air, and at multimodal exchange points, including airports, seaports, and intermodal facilities?
  • What barriers prevent timely detection, reporting, and response to cargo theft incidents, and how can DOT reduce them?

Law enforcement/security

  • How can federal, state, and local law enforcement better coordinate to address both opportunistic thefts and multi-jurisdictional organized cargo theft cases?
  • What role should federal intelligence functions play in identifying and mitigating theft risks across this spectrum?

Federal agencies

  • How should DOT operating administrations – FMCSA, FHWA, FRA, MARAD, FAA, and PHMSA – contribute to addressing cargo theft while avoiding duplication of FBI/DHS roles?
  • What data collection improvements should DOT pursue to enhance cargo theft visibility?
  • Are there regulations that cause or contribute to vulnerabilities that lead to cargo theft?

Industry

  • What industry best practices or technologies have proven most effective in reducing both opportunistic thefts and organized thefts?
  • How should DOT measure success in reducing cargo theft, and what performance metrics would be most valuable to track?
  • To what agency or jurisdiction does industry currently report cargo theft? What barriers prevent industry from reporting theft incidents to federal agencies? How can DOT reduce these barriers?
  • Which commodities face the highest risks and do those risks vary depending on if the commodity is domestic, imported, or exported?

Forward-looking

  • What potential practices, technologies, or focal points for investigation could DOT initiate over the next year to test innovative approaches to cargo theft prevention, reporting, and enforcement partnerships?

Click for more FreightWaves articles by John Gallagher.

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John Gallagher

Based in Washington, D.C., John specializes in regulation and legislation affecting all sectors of freight transportation. He has covered rail, trucking and maritime issues since 1993 for a variety of publications based in the U.S. and the U.K. John began business reporting in 1993 at Broadcasting & Cable Magazine. He graduated from Florida State University majoring in English and business.