Cargo Theft on the Rise; The Impact of Truck Driver Detention; and Other Logistics News

“An Industry Under Siege”

An alarming rise in cargo theft has shippers and trucking providers on edge—and unhappy with existing efforts to combat the surge of fraudulent activity. Cargo theft increased by 33% in the second quarter of 2024 compared to the previous year, finds the Transportation Intermediaries Association’s (TIA) latest report on the state of fraud in the transportation industry.

“We are an industry under siege right now and we are not getting the support from government and law enforcement authorities to help us combat this scourge on the supply chain,” says Anne Reinke, president and CEO of TIA. “When people think of fraud in the supply chain, they only see what is happening to a business; they are not seeing the trickle-down effect to consumers and the economy. Fraud is a multi-million-dollar problem that needs to be addressed today.”

The report highlights these key cargo theft data points:

• Truckload freight remains the primary target for fraud, with 98% of respondents identifying it as the most vulnerable mode of transport.
• The average gross cost of fraud reported by TIA members stands at approximately $402,340, with an average cost per load of around $40,760.
• Certain states, particularly California, Texas, Illinois, Georgia, and Florida, have been identified as hotspots for cargo theft.
• The most commonly stolen commodities include electronics, solar panels, and household goods.

In addition, as cargo theft becomes increasingly sophisticated, new tactics are emerging. For example, criminals are manipulating motor carrier (MC) numbers, purchasing previously vetted MC numbers to pose as legitimate trucking companies, notes Scott Cornell, transportation lead and crime and theft specialist for Travelers. This allows them to steal multiple loads before being detected.

How can shippers combat these growing threats? Cornell recommends the following actions:

• Enhanced vetting processes. Freight brokers should implement more rigorous background checks and continuously update carrier information to avoid partnering with potentially compromised carriers.
• Improved real-time communication. Establishing better communication channels between shippers and brokers can help share load details promptly, making it harder for thieves to exploit information gaps.
• Prioritize thorough checks. Despite the industry’s fast-paced nature, prioritizing detailed checks and verifications can prevent thieves from slipping through the cracks.

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Slow Warehouse = Speeding Truck Drivers?

Next time a truck speeds by you on the highway, consider that the driver may be trying to make up for lost time after being detained at a warehouse or distribution center.

That’s one hot take from the American Transportation Research Institute (ATRI)’s recent report that quantifies the productivity and safety consequences of truck driver detention at customer facilities.

Detained trucks drove 14.6% faster on average than their undetained counterparts, indicating a troubling correlation between detention and unsafe driving practices, finds ATRI. The research quantifies the direct costs for fleets, truck drivers, and supply chains in general. It also corroborates previous research that found detained trucks drive faster both after and before a detained trip occurs.

Here are some other key data points from the report:

• Drivers reported being detained at 39.3% of all stops in 2023. The frequency of detention was even higher among women drivers (49.1%), refrigerated trailer drivers (56.2%), and among fleets that operate in the spot market (42.5%).
• Truck drivers were detained between 117 and 209 hours per year, depending on the sector. In for-hire trucking alone, the total time lost to truck driver detention exceeded 135 million hours in 2023.
• While 94.5% of fleets charge detention fees, they are paid for in fewer than 50% of those invoices. As a result, the trucking industry lost $3.6 billion in direct expenses and $11.5 billion in lost productivity from driver detention in 2023.

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Getting to Digital

Digitalization of the container shipping industry is gaining ground—and that’s a good thing, according to the Digital Container Shipping Association’s State of the Industry Report 2024. The report reveals that stakeholders from across the container shipping sector perceive clear benefits of digitalization.

For instance, 86% of cargo owners see digitization as a tool for operational efficiency while ports and terminals highlight its value in enabling scalability. Banks, meanwhile, highlight the potential for risk reduction.

The container shipping industry still has a way to go on the path to digitalization, however. Outdated infrastructure, a lack of proactive investments, and resistance are among the challenges to digitalization. Additionally, respondents indicate that digital standards will be key to enabling seamless operations.

STAKE HOLDER GROUP	CURRENT TOP DRIVERS FOR DIGITALIZATION	CURRENT TOP BARRIERS TO DIGITALIZATION
	• Is a tool for improving operational efficiency • Provides better real-time tracking and visibility	• Lack of visibility into supply chain • Technological limitations
	• Improves customer satisfaction • Enables competitive differentiation	• Job security concerns • System complexity
	• Supports enhanced communication and operational efficiency through a shift toward real-time data	• Technical issues—integration with legacy systems • Insufficient investment
	• Enables scalability • Eliminates manual processing and human interaction through data integration	• Job security concerns • Pushback from unions

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Resourceful Sourcing for the Win

In September 2024, the Biden Administration finalized its plan to raise tariffs on $18 billion worth of Chinese imports, including:

• 100% tariff on electric vehicles
• 25% tariff on lithium-ion EV batteries
• 50% tariff on photovoltaic solar cells

In an online poll, Inbound Logistics asked shippers how they expect these tariff hikes will change their supply chain strategies. A clear winner emerged: 43% of respondents say they most likely will begin sourcing goods from other countries as a way to circumvent these tariffs. This approach can help reduce reliance on Chinese goods and mitigate potential losses.

While 36% of respondents cite investing in domestic production as a likely new strategy, just 22% say that using alternate import routes will be key to reducing the impact of these new tariffs.

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Where Are the Women?

While women working in the supply chain sector are no longer an anomaly, the growth of female representation in supply chain roles seems to have stalled. Results from Gartner’s 2024 Women in Supply Chain Survey show that women represent just 40% of the supply chain workforce, which is a one-point decrease from 2023.

While gains were achieved in frontline roles, the study uncovers the need for chief supply chain officers to recommit to goals, inclusive leadership, and accountability to ensure gains from previous years are not erased, according to Dana Stiffler, vice president and distinguished analyst in Gartner’s Supply Chain practice.

Three key takeaways highlight the roadblocks and accomplishments on the way to greater female participation in the supply chain workforce:

1. Lack of formal goals: While 70% of supply chain organizations have an objective or goal to increase the number of women leaders in supply chain organizations, only 29% have direct accountability for this goal on their management scorecards. This is a decrease of four percentage points from 2023.

2. Less focus on pay equity: In the 2024 results, a lower percentage of supply chain organizations have a plan to close pay gaps, and a higher percentage of respondents say they have no plans to close their gaps.

3. Progress in frontline roles: Of the organizations surveyed that have frontline workforces, respondents indicate over one in three (36%) frontline employees are women, an increase of five points over 2023.

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