Cargo theft incidents continue to climb across the United States, with California emerging as the nation’s primary hotspot. According to a recent report by Overhaul, a supply chain risk management firm based in Austin, Texas, the U.S. saw 500 recorded cargo thefts from July through September 2024, a 6.2% increase over the previous quarter. California accounted for a staggering 47% of these incidents.
This spike in cargo theft underscores the challenges supply chains face in securing valuable goods. Overhaul’s report also highlighted that electronics remain the most frequently targeted items, accounting for 30% of all reported thefts this quarter. The average loss per incident stands at $176,290, reflecting the high cost of these crimes.
Year-over-Year Trends and Increased Risks
The report showed a 7% year-over-year increase in Q3 thefts, up from 486 incidents during the same period in 2023—a year which itself marked a significant rise in cargo theft, with 177% more incidents than in 2022. This increase is partly attributed to heightened activity from organized crime rings, which continue to target key logistics hubs, particularly in cities like Chicago and Los Angeles.
Overhaul warns that, heading into the fourth quarter, cargo theft incidents are likely to rise further. The company advises shippers to remain vigilant, noting that organized crime remains a key driver of these thefts.
California: The Epicenter of U.S. Cargo Theft
California’s struggle with cargo theft is not new, but its share of national incidents has continued to increase despite substantial investments in preventive measures. In October 2023, Governor Gavin Newsom announced a $267 million allocation to aid law enforcement agencies in tackling organized retail and cargo crime. “We’re ensuring law enforcement agencies have the resources they need to take down these criminals,” Newsom stated in response to a string of high-profile thefts.
Since this funding began, the state has reported over 10,000 arrests related to retail, motor vehicle, and cargo theft offenses. In August, the state further intensified its crackdown by enacting a legislative package imposing stricter penalties on property theft and providing additional support for felony prosecutions.
Federal Measures to Combat Cargo Theft
On the federal level, the Safeguarding our Supply Chains Act, introduced by Rep. David G. Valadao, R-Calif., seeks to tackle the rising cargo theft problem by improving communication between federal, state, and local authorities. The act currently has 16 co-sponsors across 11 states, underscoring bipartisan recognition of the need to address organized cargo crime at a national level.
As the freight industry and government agencies strive to address these rising security challenges, California’s battle against cargo theft serves as both a cautionary tale and a blueprint for action. With organized crime rings becoming increasingly sophisticated, securing America’s supply chain will require collaborative and robust efforts across state and federal levels.
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Original Article – California Accounts for Nearly Half of U.S. Cargo Theft Incidents in Q3 2024, Driven by Organized Crime – Class A Jobs 411
