White Papers

2 )) Introduction In the fast-paced world of the supply chain, logistics professionals have long grappled with an array of challenges ranging from optimizing on-time performance to navigating transportation capacity fluctuations and far-flung supply chain disruptions, all while striving to meet customer demands. In addition to these concerns, a new specter looms large, becoming top-of-mind for shippers today: the rising threat of cargo fraud and theft. Traditional cargo theft—the pilfering of goods directly from trailers—has been an ongoing, but periodic, concern that often increases during economic downturns, as witnessed in the aftermath of the 2008-09 recession. The current escalation in the frequency and sophistication of cargo theft can be tied to today's inflationary economic climate, as well as the overall increase of cargo on the road as a result of the ecommerce boom that took hold during the COVID-19 lockdowns. Beyond the realm of physical theft, a parallel threat has emerged in the form of cargo fraud, where instances similar to the phishing and digital fraud schemes consumers face have made their way into the supply chain. From double-brokering—where unscrupulous motor carriers take a load from a shipper and then unlawfully broker it to another motor carrier without the shipper's knowledge or consent—to digital identity fraud— where criminals electronically pose as a legitimate broker or carrier, sometimes using phishing and other scams to steal passwords and log in to accounts to commit cyber-theft— opportunistic "bad actors" have added a new layer of security concerns for shippers. The occurrence of cargo theft and fraud has obvious negative outcomes for shippers, ranging from financial loss to customer service failures to disruption of carefully coordinated supply chain plans. In addition, companies who fall victim to cargo fraud and theft face great risk to their brand reputation—a crucial but often overlooked outcome that companies must work to prevent. In order to protect supply chains from disruption and preserve brand integrity, shippers today must take a more proactive approach to preventing cargo theft and fraud. In this whitepaper, we will explore the evolving landscape of cargo theft and fraud and examine ways for shippers to protect their supply chains in order to keep their brand names untarnished. The approach includes savvy strategies, sophisticated technologies, and partnerships with experienced 3PL providers who offer the required expertise to help keep cargo crime at bay. 2023 Supply Chain Risk Trends 2,852 Theft Reports Total Loss Value $ 331,965,445 Top Targeted Location Types Top Targeted Commodity Types Top 3 Targeted States Represent 52 % of all theft in 2023 California | Texas | Illinois 1. Warehouse/ Distribution Centers 1. Food and Beverage 2. Household Goods 2. Parking Lots 1 2 3 Source: CargoNet

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