Transportation industry leaders warned lawmakers in a recent Senate hearing that the rising trend of cargo theft is costing U.S. supply chains billions of dollars and jeopardizing the livelihoods of carriers.
Multiple speakers in the hearing claimed that cargo theft is costing domestic supply chains up to $35 billion annually in lost commodities, insurance claims, delays, etc.
By the numbers, Cargo theft incidents totaled 3,625 in 2024, up from 2,852 in 2023. Estimated losses rose to $454.9 million in 2024, up from $331.9 million in 2023. Notably, California, Texas, and Illinois accounted for 46% of all cargo theft in 2024, severely impacting the trucking industry in these states.
What can Congress do?
Will Johnson, Chief Special Agent at BNSF Railway Police Department, offered some solutions that he believes could put a damper on cargo theft and strengthen supply chain security:
- Establish a Federal Supply Chain Crime Coordination Center and Task Force to address cargo theft across the entire supply chain.
- Allocate funding for dedicated federal prosecutors to handle cargo theft cases.
- Modernize FMCSA vetting by implementing stronger authentication, real-time carrier verification, and controls over DOT and MC number transfers.
The Safeguarding our Supply Chains Act (H.R. 8834) was introduced by Representative David Valadao last June. It received high praise from multiple supply chain associations, including the American Trucking Association, the Association of American Railroads, and the Retail Industry Leaders Association.
The bill proposed $100 million in appropriations between 2025 and 2029 to bolster cargo theft prevention, but as of right now, it’s only a proposal. No further significant action has been taken since the bill’s introduction on June 25, 2024.
