Cargo thefts at freight hubs in major cities across North America increased 49% year-over-year in the first half of 2024. According to data released by cargo security company Overhaul on August 22, 45% of cargo thefts were in California, the largest share of any state. Roughly 36% of those thefts took place in what Overhaul calls the “Southern California Red Zone,” encompassing a 200-mile radius centered on the Ports of Los Angeles and Long Beach. That red zone also experienced as many cargo thefts in the first six months of the year as Texas, Tennessee, Illinois, Georgia and Arizona combined.
“This report should be a wake-up call,” Overhaul CEO and founder Barry Conlon stated. “Criminals are not only more organized, but they’re also tracking loads as they leave warehouses and distribution centers known to store valuable products, waiting to strike when vehicles are left vulnerable.”
The increase in cargo thefts in the Southern California Red Zone is attributed to its status as the West Coast’s largest shipping hub and the presence of numerous large distribution centers. Thieves typically monitor a warehouse or distribution center, wait for a shipment to leave, and then follow it until the vehicle stops and is left unattended. They then break into the vehicle, take its cargo, and load as much as they can into a nearby van or truck. Police data gathered by Overhaul showed that thieves often follow shipments for more than 200 miles, waiting for drivers to stop for breaks mandated by the Department of Transportation.
In Canada, cargo thefts were predominantly concentrated in Ontario, which accounted for 92% of all incidents in the country. The remaining thefts were scattered across British Columbia (3%), Saskatchewan (2%), Alberta (2%), and Quebec (1%).
Analysis and implications of rising cargo thefts
The dramatic increase in cargo thefts at North American freight hubs is an alarming trend with significant implications for the logistics and supply chain industries. The data from Overhaul reveals that criminals are becoming more sophisticated and organized, focusing on high-value targets and employing calculated strategies to execute thefts.
The Southern California Red Zone’s prominence as a shipping and distribution hub makes it especially vulnerable. The high concentration of thefts in this area can be linked to its logistical importance and the availability of goods stored in large distribution centers. This corridor’s role as a critical node in the domestic and international supply chain increases the appeal for cargo thieves.
The tactics of monitoring and following shipments highlight the importance of enhancing security protocols and technological interventions for tracking and protecting cargo. Overhaul’s report suggests that intervention strategies focusing on driver vigilance, real-time cargo tracking, and tighter coordination with law enforcement could mitigate risks.
In the Canadian context, the overwhelming majority of thefts in Ontario underscores the need for regional-specific security strategies. Since Ontario is a critical hub for Canadian trade, especially with the extensive distribution and warehousing infrastructure, bolstering security measures in this area could have resounding positive effects.
This rising trend in cargo theft not only has direct monetary implications due to lost goods but also disrupts the entire supply chain, causing delays and increasing operational costs. As companies grapple with this issue, there may be a shift towards investing in more robust security technologies and comprehensive risk management solutions.
For businesses involved in freight forwarding and logistics, this spike in cargo thefts could lead to higher insurance premiums and stricter regulations. The increased threat level calls for industry-wide reforms and a collaborative approach to developing resilient and adaptive security strategies, ensuring the safe and timely delivery of goods across North America.