With cargo theft and fraud on the rise, transportation and shipping organizations are urging the U.S. House of Representatives to pass legislation that would create a multi-agency federal task force to tackle cargo crime and strengthen penalties against offenders.
The primary legislation in focus is the Safeguarding Our Supply Chains Act, introduced in June, alongside the Household Goods Shipping Consumer Protection Act, which was reintroduced in December.
CargoNet, a subsidiary of Verisk, reported a 27% increase in cargo theft in 2024, with industry experts warning that the true scale of the problem is even larger.
“The rewards for cargo crime are huge, and criminals don’t even need to be in physical contact with the goods—or even in the country,” said Danny Ramon, Director of Intelligence and Response at Overhaul, during the Transportation & Logistics Council’s (TLC) 51st annual conference in Houston.
The bipartisan Safeguarding Our Supply Chains Act, introduced by Rep. David G. Valadao (R-Calif.) and Brad Schneider (D-Ill.), would establish a Supply Chain Crime Coordination Center and a Supply Chain Fraud & Theft Task Force involving multiple federal agencies, local law enforcement, and railroad police. The bill also seeks to allocate $100 million over five years to support enforcement efforts and make cargo theft reporting mandatory to improve data accuracy.
Multiple federal agencies already investigate cargo theft, which Homeland Security Investigations (HSI) estimates costs U.S. businesses between $15 billion and $35 billion annually. However, regulatory confusion and lack of coordination have made enforcement inconsistent.
“There’s a lot of finger-pointing about which federal agency is actually responsible,” said Chris Burroughs, CEO of the Transportation Intermediaries Association (TIA). “Every regulatory agency should be involved, because this affects everyone.”
A major hurdle in addressing cargo crime is inaccurate reporting. Scott Cornell, National Practice Transportation Lead at Travelers Insurance, believes that official statistics severely underestimate the problem.
“Cargo theft is often misclassified—as auto theft, general theft, or fraud,” Cornell explained. “The 3,625 thefts CargoNet reported for 2024? That’s just the tip of the iceberg. I estimate the real number is between 50,000 and 100,000 cases.”
While industry leaders support the proposed task force, many emphasize that it’s just one tool in the fight against cargo crime.
“It’s not a silver bullet, but it’s a step forward,” Cornell said. “We need stronger enforcement, better coordination, and clear accountability to make real progress.”
Source: joc.com