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Can federal security forces stop cargo theft in Memphis?

Memphis, Tennessee, is a vital transportation and logistics hub: it’s one of three cities (including Chicago and St. Louis) where all the Class I rails meet; its airport, thanks to FedEx, is one of the busiest cargo airports in the world; the Mississippi River itself carries 170 million tons of cargo on barges past Memphis each year; the city sits at the intersection of I-55, connecting Chicago and New Orleans, and I-40, connecting North Carolina and California.

This strategic location, however, has turned the Bluff City into a prime target for cargo thieves, fueling a persistent crime wave that drives up costs for consumers nationwide. As private companies own most railroad tracks yet operate under federal oversight, a recent influx of federal resources offers hope, but experts and locals question its lasting impact.

Data from Cargonet paints a stark picture: Memphis ranks second in the nation for such incidents. In 2024 alone, Shelby County accounted for nearly 70% of Tennessee’s reported thefts, highlighting the region’s vulnerability. Thieves exploit stationary trains, breaking into boxcars to pilfer goods ranging from electronics to apparel. "It’s shocking to see people either grab trucks or jump on trains and take cargo out of train cars," remarked U.S. Congressman Steve Cohen (D-TN 9th District), underscoring the brazen nature of these operations.

The FBI maintains a dedicated task force targeting cargo thefts, including Memphis’s notorious train burglaries. Amid the White House’s declaration of a "crime crisis" in the city, President Trump has deployed enhanced federal aid, including the creation of the "Memphis Safe Task Force" and a call for National Guard activation. Trump cited a direct conversation with Union Pacific Railroad’s leadership about local crime as a key motivator. Union Pacific, however, declined comment when approached by FOX13.

While Cohen praises the visibility of federal presence ("Visibility deters crime"), he cautions it’s merely a "short-term answer." National Guard troops won’t linger indefinitely, leaving gaps once they depart. Residents near the tracks echo this frustration. "They hit this train on the other side. It’s an opportunity because they sit there all day," one local observed, pointing to idle trains as easy prey.

Keith Lewis, Cargonet’s vice president, explains the appeal: "It’s an easy crime to get away with. Kind of difficult to commit, but once you get the M.O. down, it’s something that’s doable." He advocates for proactive measures like better surveillance to disrupt thieves mid-act.

Looking ahead, Cohen urges railroad operators to invest in private security, drone patrols, or fortified infrastructure. Yet, he frames cargo theft as symptomatic of deeper woes: "Most crime problems are endemic… years of economic lack of opportunity, issues with education, and issues with mental health." The Guard’s arrival may slow thefts temporarily, but without addressing root causes, Memphis’s tracks remain a thief’s playground. As federal boots hit the ground, the real test lies in sustaining momentum beyond the spotlight.

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Freight Fraud Video of the Week 🤩

This episode of Axel Live reveals 42 trucking authorities tied to two Florida addresses—a virtual office and a postal box. We break down MC/USDOT numbers, expose ongoing fraud, and show how both FMCSA and industry veterans are enabling this scheme.

How the FMCSA’s new rules are reshaping carrier trust amid rising cargo fraud

In the trucking industry, trust is paramount, yet cargo fraud and theft are eroding it at an alarming rate. The Federal Motor Carrier Safety Administration (FMCSA) introduced new rules in April 2025 to combat this, requiring new commercial driver applicants to undergo facial scans matching government documents and provide verifiable physical business addresses. These measures aim to enhance traceability for new carriers, fostering greater confidence among shippers and brokers as fraud tactics evolve.

Cargo theft has exploded, with strategic incidents surging 1,500% since the first quarter of 2021. According to CargoNet, thefts rose 13% in Q2 2025 compared to the prior year, contributing to an estimated $35 billion annual hit to the U.S. economy. This not only inflates operational costs but also drives up retail prices for consumers, as stolen goods disrupt supply chains.

Fraudsters are getting craftier. Common schemes include double-brokering, where loads are subcontracted illegally, and manipulating bills of lading (BOLs) to hide partial thefts. Thieves might offload portions of a shipment mid-route, altering paperwork so discrepancies surface months later. "Chameleon carriers" disguise illicit operations under legitimate facades, using unbranded trucks to impersonate trusted entities. Even technology is weaponized: AI-generated phone calls scam brokers by mimicking voices, though telltale signs like unnatural laughter can expose them.

These challenges highlight the need for innovation. While FMCSA’s rules modernize registration and reduce identity fraud, the industry must go further. Digitized BOLs eliminate paper-based vulnerabilities, enabling real-time verification. Advanced tools offer pre-tender visibility, assessing carriers’ compliance, insurance, lane history, and even VIN validation before loads are assigned. Real-time freight tracking disrupts theft by providing granular insights into shipments, allowing early detection of anomalies.

Experts like Danielle Spinelli, an account executive at Descartes and host of the "Tell Me Everything" podcast, emphasize that while fraud can’t be eradicated, proactive tech adoption can minimize losses. With her eight years in freight brokerage, Spinelli—who calls herself "The Fraud Girl"—advocates building resilient networks through comprehensive carrier data. As thieves adapt, so must the logistics sector, leveraging these tools to stay ahead and prevent further record-breaking thefts.

The FMCSA’s reforms are a step forward, but sustained momentum requires industry-wide commitment to technology. By prioritizing visibility and verification, shippers can rebuild trust, safeguard assets, and mitigate the economic ripple effects of cargo crime.