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While organized retail crime (ORC) as a whole has been a hot-button topic of discussion and debate for some time, the connected discussion surrounding cargo theft more specifically came into focus during a recent Senate Judiciary Committee hearing zeroing in on the growing supply chain issue.
One person to offer a concrete definition in testimony offered before the committee was Scott McBride, chief global asset protection officer for American Eagle Outfitters. He defined the issue as follows:
"Cargo Theft, Reverse Logistics, & Exfiltration of Stolen Goods: These groups demonstrate sophisticated logistical capabilities. They establish robust reverse logistics networks to efficiently transport, warehouse, consolidate, repackage, container load, and ship stolen products, effectively exfiltrating them across land and sea borders."
In a concise breakdown outlined by Retail Dive senior reporter Daphne Howland, the increasingly obvious pain point of cargo theft was detailed in brief. For his part, Committee Chair Chuck Grassley (R-Iowa) gave opening remarks related to the threat posed by the criminal action on U.S. supply chains, citing one example in particular — a recent federal indictment of 11 defendants accused of “stealing nearly half a million dollars worth of Nike shoes [from a train]" to back his claim.
Consumers, Retailers Both Bear the Brunt of Cargo Theft Costs
Without speaking to the act of cargo theft almost certainly funding illicit activities domestically and abroad, the problem of such theft also damaging retailers' bottom lines and necessarily pushing some costs to consumers was also tabled during Senate committee discussions.
According to testimony from David Glawe, president and CEO of the National Insurance Crime Bureau, cargo theft surged by 27% in 2024 year-over-year, with estimated losses topping $1 billion. However, as Glawe added, "other estimates suggest that cargo losses may reach up to $35 billion annually."
Donna Lemm, chief strategy officer for IMC Logistics, reinforced Glawe's position, suggesting that "cargo theft is robbing our supply chain to the tune of $35 billion per year," a figure which has been bandied about by the American Trucking Associations and attributed to estimates provided by federal agencies.
As for individual incidents, CargoNet tallied 3,625 reported incidents of cargo theft spanning Canada and the U.S., matching the 27% YoY increase noted above, but with a focus on incidents rather than value lost.
Cargo Theft Reporting May Need an Overhaul
On another note, many interested parties exhibited concern over a lack of organization related to the tracking, reporting procedures, and overall structure needed to deter or otherwise prevent cargo theft.
Aside from imprecise reporting data — something Ronald Burns of Texas Christian University and Charles Crawford of Western Michigan University indicate is at least partially due to “decentralized organization approach to law enforcement” in the U.S. — a connected concern of where, exactly, to report incidents of cargo theft emerges.
Proposed legislation re-introduced in both the House and the Senate in April seeks to address this issue, and Lemm spoke to the importance of getting a regulatory framework solidly in place.
"We don’t know where to report. We need a centralized place to report,” Lemm said.
“I explained the incident in St. Louis, where we basically had the [Bureau of Alcohol, Tobacco, Firearms and Explosives] calling us … It’s this ability to connect the dots — local, state and federal — that we don’t have today," she added.