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The U.S. Capitol building’s west front.

Congress hears about cargo theft

On July 15, 2025, Donna Lemm, Chief Strategy Officer for IMC Logistics, testified before the U.S. Senate Judiciary Committee on behalf of the American Trucking Associations (ATA), urging Congress to address the escalating crisis of cargo theft. Representing the trucking industry, Lemm advocated for the Combatting Organized Retail Crime Act, a bipartisan bill aimed at establishing a coordinated multi-agency response to combat the surge in thefts plaguing the nation’s supply chain.

Cargo theft has become a pervasive threat, with incidents skyrocketing across the United States. According to industry estimates, these crimes cost the supply chain up to $35 billion annually, driving up consumer prices and insurance premiums. Particularly alarming is the rise in "strategic theft," which employs sophisticated methods like deception, fraud, and cybertheft. This form of crime has surged by 1,500% since the first quarter of 2021, with the average value per incident exceeding $200,000. Lemm emphasized that without immediate intervention, cargo theft will continue to "metastasize," undermining economic stability and national security.

The hearing, initiated by subcommittee senators, highlighted how organized criminal enterprises exploit vulnerabilities in the trucking sector. Motor carriers face significant challenges not only in preventing thefts but also in reporting them effectively. Local law enforcement often classifies these incidents as mere vandalism or insurance matters, failing to investigate deeper connections to broader criminal networks, including transnational organizations. This fragmented approach allows patterns of criminal behavior to go undetected across jurisdictions.

Lemm illustrated these issues with real-world examples from IMC Logistics. In one case, thieves stole two containers of refrigerators, which local police dismissed after filing a basic report. Months later, federal agents discovered the appliances during a warehouse raid, revealing they were being used to smuggle cash across the southern border—a stark indication that what appeared as isolated theft was part of a larger conspiracy.

Safety concerns for supply chain workers, including truck drivers, were a key focus. Trucking companies invest millions in advanced security measures, such as guards, surveillance systems, vehicle barriers, GPS tracking, cybersecurity protocols, engine immobilizers, and emergency SOS buttons. However, smaller operators struggle to match the criminals’ evolving tactics without federal support. Lemm argued that the industry cannot combat this alone, as thieves’ sophistication outpaces individual efforts.

The proposed Combatting Organized Retail Crime Act, introduced in April by Senators Chuck Grassley (R-Iowa) and Catherine Cortez Masto (D-Nevada), offers a comprehensive solution. Endorsed by the ATA, the legislation would enhance legal frameworks, bolster enforcement capabilities, and promote collaboration among federal, state, and local agencies. The Department of Homeland Security would lead a unified national strategy to "connect the dots" and match the coordination level of criminal adversaries.

In her testimony, Lemm expressed gratitude to the bill’s authors, stating, "This bill would put law enforcement’s level of coordination on par with their sophisticated criminal adversaries and safeguard our national security." The trucking industry views this as a critical step to protect the supply chain, reduce economic losses, and ensure the safety of those who keep goods moving nationwide. As cargo theft continues to evolve, congressional action is seen as essential to stemming the tide and preventing further escalation.

We’ll see about that… (Giphy)

Freight Fraud Video of the Week 🤩

This week on The Long Haul, Adam Wingfield sits down with Brian Woodring, owner-operator and outspoken advocate for protecting drivers from load board fraud. Brian shares what fraud really looks like behind the scenes, how to spot the warning signs before you get burned, and why carriers need to be more cautious than ever when booking freight.

Cargo theft is increasingly an inside job

(Photo: FreightWaves])

According to a July 16, 2025, FreightWaves article, cargo theft involving insider participation surged in the second quarter of 2025, as reported by Tony Pelli, global director of supply chain resilience at BSI Consulting. BSI’s Q2 global cargo theft report, covering April 1 to June 25, identified Miami and Los Angeles as the top U.S. hotspots for these incidents. The rise in insider threats is attributed to criminals exploiting employees, often unknowingly, through sophisticated methods like phishing emails and cybersecurity vulnerabilities. Pelli emphasized that these thefts are becoming more coordinated, with criminals soliciting insiders to gain access to sensitive shipment data.

The report highlights a broader cargo theft crisis, with North America seeing a 27% year-over-year increase in incidents in 2024, totaling 3,625 cases and losses exceeding $455 million. Mexico led with 63% of North American incidents, while the U.S. saw a significant uptick in insider-driven thefts. High-value goods like electronics, which comprised 24% of U.S. thefts, are prime targets due to their resale value. Strategic theft, involving fraud and deception, has grown increasingly sophisticated, leveraging technology to exploit supply chain weaknesses.

Pelli stressed the importance of cybersecurity training to combat insider threats, urging companies to educate employees on recognizing phishing attempts and safeguarding sensitive information. For example, criminals may pose as legitimate contacts to extract details about load schedules or shipment routes. Economic pressures, such as the ongoing freight recession, have also fueled insider threats, with some employees succumbing to financial desperation or unknowingly aiding criminals.

The article cites specific cases, such as a warehouse employee in Arizona leaking pharmaceutical load schedules, enabling a theft during a rest stop. Such incidents underscore how insider information amplifies vulnerabilities, particularly in high-risk areas like ports or border regions. Industry experts warn that without proactive measures, the crisis will worsen, especially as criminal networks exploit technology originally designed to enhance supply chain efficiency.

To address the issue, the trucking industry is pushing for stronger federal intervention, including the Combatting Organized Retail Crime Act, which aims to enhance coordination among agencies to tackle organized theft. Companies are also investing in advanced security measures, such as AI-powered monitoring and IoT beacons, to protect cargo. Pelli’s insights highlight the need for a multi-layered approach, combining employee training, technology, and legislative support to safeguard the supply chain against escalating insider threats.