Trucking news and briefs for Monday, Oct. 2, 2023:
Cargo theft up 57% year over year in second quarter
CargoNet recorded 582 cargo thefts worth nearly $45 million in the second quarter of 2023.CargoNet
Much of the increase is due to ongoing shipment misdirection attacks, a kind of strategic cargo theft in which bad actors use stolen motor carrier and broker identities to obtain freight and misdirect it from the intended receiver so they can steal it.
In total, thieves stole over $44 million in shipments in the second quarter of 2023 and the average shipment value per event increased nearly $100,000 to $260,703 per theft as cargo thieves focused on high-value shipments.
In the second quarter, theft of a loaded conveyance such as a full trailer increased 17% year-over-year. These kinds of thefts were most common in California, Texas, Florida, and Illinois. CargoNet also noted that regional activity around New York City and Philadelphia was significant.
[Related: Cybersecurity becomes bigger element in protecting cargo]
Burglary of a loaded conveyance decreased slightly year-over-year due to the impact of recent law enforcement activity but still remains a significant threat to shipments, especially high-value shipments that are traveling on the I-40 corridor through Arizona, California and New Mexico.
CargoNet has also seen significant growth in extortion and theft by conversion schemes, particularly from organized groups in Illinois and California. These groups focus on obtaining shipments from brokers, tacking on extra and often exorbitant fees for various manufactured reasons like overweight tickets or previous rate penalties charged to non-affiliated motor carriers. Criminal enforcement for such cases is complex and rare, which has emboldened organized groups.
Finally, CargoNet recorded 127 more fictitious pickups year-over-year. Fictitious pickups were most common in the Los Angeles metro area, but they occurred all over the continental U.S. Fictitious pickup groups stole shipments from 39 different product categories in the second quarter but primarily focused their efforts on a smaller grouping of freight, including alcoholic beverages, non-alcoholic beverages -- specifically soda and energy drinks -- solar power energy generation equipment, and various kinds of automobile supplies.
This style of fictitious cargo pickup relies heavily on subcontracting the shipment to a legitimate motor carrier and having the shipment misdirected to another address.
Motor carriers should be wary of new customers that want them to haul a blind shipment delivering to an address different from the bill of lading, especially if the address is a public warehouse or cross dock in California.
[Related: Convoy reduces freight fraud by 90% across its network]
Inland Truck Parts & Service expands in Montana
Inland Truck Parts & Service has acquired Powertrain Driveline Express of Belgrade, Montana.
The companies will both operate out of the Inland location at 209 Yukon Lane. It will be managed by Don Linder, who previously managed Inland's Billings, Montana, location.
"When we expand into a new area it naturally brings a high level of excitement to the business," Linder said. "Moving into Belgrade and then quickly adding driveline services to our offering should allow us to deliver a great value to the heavy-duty trucking industry here in Belgrade."
The Belgrade location is Inland's third in the state and 37th location overall. Other facilities are in Colorado, Iowa, Kansas, Louisiana, Missouri, Montana, Nebraska, North Dakota, Oklahoma, South Dakota, Texas and Wyoming.
"The Belgrade-Bozeman area is the fastest growing market in Montana and a great fit for Inland," said Greg Klein, president and CEO of Inland. "Adding this location will help us better serve our customers in Montana. Now, customers will get what they need faster and more efficiently."
Inland will celebrate its 80th anniversary next year.
