Understanding Freight Theft: Causes, Effects, and Solutions

It’s an issue with which we’re all too familiar, especially in a post-pandemic world. “Supply chain issue” is a catch-all term that encompasses any and all hiccups in a cargo shipment’s journey from creation to consumer, and no matter what the individual application entails, it’s bound to result in frustration for all parties involved.

One particularly prevalent type of supply chain disruption is the theft of freight from checkpoints, facilities, vehicles, and destinations. A growing concern for shippers, carriers, manufacturers, logistics companies, and consumers alike, cargo theft can deal a catastrophic blow to the flow of goods and the economy at large. 

In this post, we will look at the root causes behind freight theft, the effects it has on the shipping industry, as well as actionable solutions for mitigating and preventing this growing problem. With the right surveillance technology and a trained team of experts in your corner—both trademark offerings of LiveView Technologies—you can prevent freight theft and offer a smoother, more secure supply chain to your partners and customers. 

Freight and Logistical Security: A Different Ball Game 

Welcome to the world stage. While there are many important settings in which businesses need to secure their assets, data, and processes, freight security is a uniquely public and delicate industry. The stakes are high, there are many parties involved, and high-value goods are often at the center of shipping operations. If something goes wrong along a supply chain, it could potentially become an industry-wide—or even worldwide—news story.

Besides having a strong effect on your company’s reputation, even a smaller rash of cargo theft can lead to dips in revenue for your customers. Every little hiccup in the supply chain has the potential to cause major issues.

Freight Theft: An Issue that Rocks the World 

Not all crimes are created equal. Freight theft, or the hijacking, threatening, pilfering, or direct theft of cargo, is an extremely costly offense that can impact countless businesses and lives.

According to CargoNet, 2024 saw a 27% rise in cargo theft from 2023, which was already a record-breaking year for this economically devastating brand of criminal activity. Per the Homeland Security Investigations agency, via Talk Business & Politics, supply chains lose up to $35 billion every year to cargo theft, including crimes such as shipment interception and broker fraud. 

So many industries and businesses rely on a functional supply chain, which makes freight security an absolute necessity for logistics companies and their partners.

Factors that Contribute to Freight Theft 

There are a variety of factors that may facilitate cargo theft, but most boil down to a few root causes. 

First, a lack of adequate physical security can contribute heavily to theft along the supply chain. Poor fencing, faulty locks, gaps in perimeters, and the absence of alarms, access control, or surveillance cameras can open your shipped assets up to theft. 

Second, when sensitive areas aren’t being monitored in real time, criminals can run off with your precious goods undetected. Trailers, yards, docks, depots, and other environments along the shipping journey need to be monitored for suspicious activity at all times—whether by a human team or sophisticated AI—to prevent unnecessary vulnerability. Poor tracking systems also lend to theft on the supply chain, allowing freight to vanish without a trail to follow.

Third, one of your most potent threats could be lurking within your own organization. Drivers, warehouse staff, and other employees or contractors can become compromised and participate in the theft of your cargo. These individuals are often emboldened by weak company policies and a lack of accountability protocols or audits.

Fourth and finally, networks of organized crime thrive on stolen goods sold on the black market. These covert webs of bad actors are coordinated and sophisticated, and they tend to target specific shipments or routes. These groups are successful as long as your security strategy remains primitive and closed; proactive, predictive security measures (such as AI-powered security technology) and the sharing of intelligence could go a long way in mitigating organized freight theft. 

An Economy-Crippling Domino Effect  

For any business, the consequences of freight theft can be far-reaching and devastating. Financial loss can include the cost of replacing stolen goods, rising insurance premiums, long-term customer loss, and more. Delayed shipments can sow distrust and dissatisfaction among your customer base, leading to even deeper loss in the long run.

Unchecked crime along the supply chain will ripple across businesses and industries, and the measure of its impact cannot be predicted. Proper freight security is vital not only to the success of your business, but to the health of domestic and international trade.

Solutions to Freight Theft

Though the crime facing businesses is serious and its consequences are daunting, take heart: there are tried-and-true solutions that can help to prevent loss and protect supply chains from nefarious characters. 

Surveillance 

As a proprietor or security professional in the shipping sector, high-quality surveillance technology is going to be your best friend. Install a surveillance system equipped with thermal and infrared vision capabilities, high-definition security cameras, real-time monitoring and alerts, and AI-powered analytics for detecting potential breaches.

Internal Protections

As you invest in defending against the threats outside, be sure to pay due attention to potential danger from within your own ranks. Conduct thorough background checks on new hires, audit logs and other internal records, and monitor employee behavior for any suspicious activity. Maintain data security and closely manage the lifecycles of passwords and other sensitive information. Foster security awareness within your teams, and encourage employees to report any questionable behavior to a supervisor.

Perimeter Security and Access Control 

The dynamic and nontraditional nature of the shipping industry can make it a little tricky to set up and maintain a tight perimeter, but even if you can’t build an impenetrable stone wall around every truck and checkpoint, there are still plenty of ways that you can control who has access to sensitive areas and valuable cargo.

Verify the identities of any personnel handling or transporting your freight with badge or biometric access, logs detailing the chain of custody, and driver verification. 

Real-Time Tracking

Know exactly where your freight is at any point in its journey by using a reliable tracking system. Whether by telematics or GPS, track your cargo and its transport vehicles in real time. You may also use geo-fencing to be alerted when a vehicle goes off-course. 

System Integration 

Make sure that all of your security technology can integrate, or work in tandem to detect and deter crime. Your surveillance cameras should be able to connect to your alarms, access control, dashboards, and alert systems for a more comprehensive security approach.

The LVT Difference: Freight Security and the Mobile Surveillance Unit

The unique environments of the shipping and logistics industries call for an adaptable security solution, one that’s not bound to the power grid or wired into the wall. LiveView Technologies is thrilled to present the answer to your complex, ever-changing security needs: the mobile surveillance unit. Equipped with the following cutting-edge features and more, these units can be customized to suit any security situation.

• High-definition surveillance cameras 
• Easy deployment and maintenance 
• Real-time monitoring and alerts 
• Seamless integration 
• Talk down communication 
• Motion detection 
• Night vision 
• Independent power 
• AI-powered analytics

With LVT’s advanced surveillance technology and a tailored, proactive approach based on your unique shipments, you can respond rapidly and effectively to mitigate risks to your cargo and make sure that your valuable assets arrive safely at their destinations.

Ship Safely with LVT

Ready to safeguard your freight from theft and fortify your supply chain against threats of all kinds? 

‍LiveView Technologies leads the freight security industry as experts in innovative, intuitive, and dependable surveillance technology. Schedule your demo today, and take your first essential step toward protecting your business from the serious and ever-evolving threat of freight theft.