Cargo theft is a growing threat across the transportation industry, affecting both truckload and intermodal shipments. As organized theft rings become more sophisticated, companies must take proactive steps to protect their goods in transit.
While truckload shipments remain the primary target for theft, the rise in theft incidents on U.S. railways has drawn increased attention to the vulnerabilities of intermodal shipping.
With the right strategies, shippers can minimize the risk of theft and ensure the safe, secure delivery of their goods.
Cargo theft refers to the unauthorized stealing of goods during transport, and it has become a significant issue for both truckload and intermodal shipments. In the first half of this year alone, reported cargo theft incidents surged by 49%, with 787 cases documented across the U.S. However, this figure likely underrepresents the true extent of the problem due to unreported crimes handled without local or federal authorities.
In the intermodal sector, where freight moves via both truck and rail, the risk of theft is generally thought to be lower than in truckload shipments.
A contributing factor to intermodal theft is that not all intermodal freight lanes move daily, which causes freight to spend extended time at rail terminals, giving criminals greater opportunity to breach containers. The Los Angeles theft wave of 2022 highlighted this issue when millions of dollars' worth of goods were stolen from railcars during extended terminal stops.
Freight moved by rail often has fewer touchpoints compared to truckload shipments, where a driver is typically in close proximity to their cargo for more in-transit supervision. Without frequent monitoring, containers can sit and become prime targets for thieves. Some intermodal shipments remain vulnerable in under-secured rail yards, increasing the risk of theft, although this issue is being addressed as security is quickly being added.
Criminals access containers using portable grinders and other tools to break into them, making traditional locks and seals largely ineffective. The criminals working on railcars and intermodal containers typically operate in teams, allowing them to quickly convey stolen goods to their transport vehicles.
Organized crime rings are increasingly targeting high-value goods. For example, in Los Angeles, criminals stole over $5 million in Nike shoes from intermodal containers.
Rail ramps and terminals are frequent hotspots for theft, with criminals focusing on idle rail equipment. One notable case in Memphis involved a rail yard employee who was arrested for his role in stealing approximately $1 million in cargo. This example underscores the internal risks that companies face when managing security at intermodal terminals.
Criminals often target containers by bypassing traditional seals and locks using advanced tools like portable grinders. This practice renders many traditional security devices ineffective, leading companies to explore new technologies like tamper-resistant seals and digital tracking systems.
One of the key debates in the industry is whether heavy-duty locks and security seals deter theft or draw more attention to high-value shipments. While advanced security devices like War-Lok can make containers harder to breach, some experts argue that they may also signal to thieves that the container holds valuable goods. Shippers must weigh the pros and cons of using these devices.
Locks and security seals can offer added protection, but they come with their own logistical challenges. Managing these systems—especially in an intermodal environment involving multiple stakeholders (railroads, carriers, and shippers)—can complicate operations.
Cargo theft isn’t always a physical issue; sometimes, sensitive information is the target. Thieves can gain access to shipment details from insiders with access to crucial data, making it imperative for companies to protect sensitive information to minimize cargo theft risk.
Cargo theft results in significant financial consequences for businesses. The rise in cargo theft on both trucks and trains has driven up the overall cost of shipping for many companies. In addition to the direct loss of goods, companies often face increased insurance premiums and higher costs associated with replacing stolen items.
When a container is breached or stolen, it causes delays throughout the supply chain. These disruptions can lead to production stoppages, missed delivery deadlines, and lost revenue, as companies must replace stolen goods and reschedule shipments.
Customers expect their goods to arrive safely and on time. When theft incidents occur, companies may experience damage to their reputation, particularly if high-value goods or sensitive products are stolen. This loss of trust can have long-term consequences for businesses, affecting their relationships with clients.
Placing containers in the bottom well of railcars offers additional security, as these containers are harder to access and less visible. BNSF offers a specialized program where, for an additional fee, shippers can guarantee their containers will be placed in the bottom well, providing an extra layer of protection from theft.
New security seal technologies have been developed to make it harder for thieves to access containers. These advanced locks are tamper-resistant and reusable, but coordinating the return of these seals to shippers can become a logistical challenge.
Rail companies like the Union Pacific have implemented cutting-edge tracking technology that monitors where and when container doors are opened during transit. This technology helps pinpoint theft locations and identify patterns, allowing companies to better understand where thefts are most likely to occur and take proactive measures to protect their cargo.
Intermodal marketing companies (IMCs) and class I railroads collaborate to reduce the risk of theft by utilizing data-driven insights. By analyzing theft patterns, they can identify high-risk locations along shipping routes and reroute high-value shipments onto faster trains that avoid theft-prone areas like switching yards. These faster trains reduce idle time, thereby minimizing the exposure of high-value containers to potential theft.
Truck drivers are often the first line of defense against cargo theft. Ensuring that drivers are trained on best practices—such as avoiding high-risk areas, securing vehicles during stops, and being aware of surroundings—can significantly reduce the likelihood of theft.
Installing security systems like alarms, cameras, and immobilization devices can deter criminals and provide real-time monitoring for truckload shipments. These technologies offer an added layer of security to prevent theft during transit.
One of the key benefits of intermodal shipping is that it typically involves fewer stops compared to traditional truckload shipments. With fewer points of vulnerability, intermodal shipping reduces the opportunities for theft. Once a container is loaded onto a railcar, it remains in motion for longer periods, decreasing the risk of theft.
Intermodal shipments gain significant advantages over truckload with the fact they are not open to stops along the highway because of the dray segments of an intermodal shipment are in close proximity to their origin and destination intermodal ramps.
Intermodal providers that have strong relationships with class I railroads are better positioned to offer secure transport. Partnering with railroads that implement advanced security protocols and tracking technologies helps shippers reduce the risk of theft and ensures that their goods are delivered safely.
Cargo theft is a significant and growing threat to both intermodal and truckload shipping.
As criminals continue to evolve their tactics, the need for vigilance across the supply chain has never been greater. However, by implementing advanced security measures, collaborating with trusted partners, and leveraging technology to monitor shipments, companies can reduce their risk.
At InTek Freight & Logistics, we specialize in providing secure, reliable intermodal solutions that help minimize the risk of cargo theft. With a focus on advanced technology, strong partnerships, and tailored strategies, we’re committed to ensuring the safe transport of your goods.
Contact us today to learn more about how we can protect your high-value shipments.
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