According to CargoNet, a company specializing in cargo theft prevention: (3)
- Nearly $130 million worth of goods were reported stolen in 2023, with the actual figure likely higher due to underreporting
- Most cargo thefts occur near warehouses, distribution centers, and unsecured parking lots
- Thieves are not only stealing full truckloads but also targeting smaller amounts of cargo and individual items from trucks
- Common targets are valuable loads that can easily be sold on the secondary market
- Cargo theft has become part of organized crime rings
- Hotspots include California, Texas, Georgia, and Illinois
The Costs of Cargo Theft to Businesses and Consumers
There is a disproportionate impact of cargo theft on small businesses, culminating in a financial burden that a company may not be able to overcome as well as operational disruptions faced by brokers and small warehouses that have experienced theft. Trucking companies that experience cargo theft will likely be held liable for the loss and have to pay for the stolen product, with insurance often not covering the entire loss because of the policy deductible and limits of coverage. Reporting such losses often results in higher insurance premiums as insurance companies are experiencing unprecedented losses. (4)
For the consumer, this can lead to higher prices. Trucking companies may have to raise rates for future shipments to cover losses incurred through out-of-pocket expenses or by paying higher insurance premiums, resulting in additional costs that frequently get passed on to consumers.
Martarazzo points out that an additional unknown cost related to cargo theft is the lost “chain of custody.” Many consumer-packaged goods have specific “chain of custody” or quality control requirements that need to be followed. When products are stolen and sold on the black market, the chain of custody and quality control aspect of handling the product is lost, leading to less-than-perfect customer satisfaction or increased health risks that are impossible to measure.
Fusion Transports Proactive Approach to Protecting Freight from Cargo Theft
Fusion Transport has managed to stand out in the world of freight by leveraging a unique approach to logistics:
- Operate proprietary less-than-truckload consolidation networks
- Designed and implemented a three-step carrier vetting process
- Designed a network of company-owned and partner warehouses as a forward delivery network
- Designed a custom cargo quality program
- Implemented cargo GPS tracking solution within network
Matarazzo and Fusion Transport have implemented proactive measures to combat this growing threat. He emphasizes the critical need for stringent vetting processes when selecting carriers to move cargo, highlighting the importance of thoroughly researching the background and history of potential partners. “Many of these carriers lack a substantial track record and have limited assets, making them hard to vet. It’s critical to have the ability to accurately check their credentials, providing the best protection against risk,” he states. “Furthermore, many of these small trucking companies are becoming the victims or unassuming accomplices in theft. It’s imperative for businesses to conduct thorough due diligence before entrusting their cargo to any carrier.” He stresses the need to begin the process at the ground level, looking for red flags, and, before handing over a load, asking basic questions to determine if everything checks out.
Fusion Transport also employs a multi-faceted approach to mitigate the risk of cargo theft, which includes comprehensive vetting procedures, on-the-ground inspections of carriers and equipment, and GPS tracking of freight to monitor its whereabouts in real time.
Along with these concrete approaches, Fusion Transport, under its CEO and Owner, Frank Matarazzo, has decidedly altered the approach to shipping issues by taking personal responsibility and actively collaborating with clients on solutions. “I expect the Fusion team to go above and beyond the root cause issues and improve our business,” he states. “When we experienced receiving discrepancies with retail customer shipments, we reviewed our internal processes first, then called Walmart, scheduled visits, watched the receiving process – how freight comes off the truck, how it’s received, how it is run through the conveyor system, and what happens when it fails – and we found several opportunities for improvement that we then worked through with the customer to improve. We want to create more ownership in the process, from beginning to end.”
Fusion Transport remains committed to enhancing security measures and collaborating with industry stakeholders to address the escalating threat of cargo theft. For more information about Fusion Transport and its comprehensive logistics solutions, visit Fusion Transport.
About Fusion Transport:
Freight industry visionary Frank Matarazzo responded to the complex challenges of shipping logistics, consumer demands, and the need for advanced supply chain solutions by creating Fusion Transport. Emerging from two third-party logistics brokerages and based in Rutherford, NJ, Fusion Transport has become a pivotal force in retail consolidation and is now a leader in technology-driven freight management solutions. With over 40 years of expertise, the company is revolutionizing the North American less-than-truckload (LTL) network through a technology-based approach that not only meets market demands but also reduces the inefficiencies typically seen in traditional LTL carrier networks. This innovative strategy offers a more streamlined and cost-effective option for shipping merchandise in LTL quantities across the country, epitomizing the disruptive, customer-focused ethos of Fusion Transport. For more information, visit their website at https://www.fusiontransport.com/.
References:
1. Garsten, Ed. “Cargo Thefts near $700 Million as Supply Shortages Create Dealer Desperation.” Forbes, Forbes Magazine, 5 Mar. 2024, http://www.forbes.com/sites/edgarsten/2024/03/04/cargo-thefts-near-700-million-as-supply-shortages-create-dealer-desperation/.
2. Mahoney, Noi. “Cargo Thefts Spiked 68% in Q4, Led by Food and Beverage Freight.” FreightWaves, 21 Mar. 2024, http://www.freightwaves.com/news/cargo-thefts-spiked-68-in-q4-led-by-food-and-beverage-freight.
3. “The Cargo Theft Threat.” Inbound Logistics, 8 June 2022, http://www.inboundlogistics.com/articles/the-cargo-theft-threat/.
4. Snape, Gia. “Fraud and Misdirection Schemes Drive Cargo Theft Surge.” Insurance Business America, Insurance Business, 10 Aug. 2023, http://www.insurancebusinessmag.com/us/news/auto-motor/fraud-and-misdirection-schemes-drive-cargo-theft-surge-455858.aspx.
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SOURCE Fusion Transport
