Thieves targeting freight shipments—sometimes with an emphasis on food shipments—are costing the supply chain up to $35 billion annually and fueling price inflation for consumers. Strategic theft has risen 1,500% since the first quarter of 2021, and the average value per theft is over $200,000. In fact, cargo theft in the food industry has become such a significant challenge to food shippers that the Food Shippers Annual Conference earlier this year featured a panel discussion specifically on this topic.
Cargo theft comes in many forms and causes significant financial losses and operational disruptions, whether it involves imitating a legitimate company, pilfering goods over time, breaking into a parked tractor-trailer, double-brokering fraud, or holding freight hostage. Increasingly, thieves are employing sophisticated cyber methods to steal product.
Earlier this month, several associations such as the American Trucking Associations (ATA), the National Retail Federation (NRF) and the Retail Industry Leaders Association (RILA) applauded a bipartisan, bicameral group of lawmakers who introduced the Combating Organized Retail Crime Act. The bill seeks to establish a unified, federal response to the proliferation of cargo theft perpetrated by criminals who often operate across state and international borders.
Due to the complex nature of cargo theft, only the federal government has the authority, resources, and technical abilities to mount an effective defense. The Combating Organized Retail Crime Act would enhance legal frameworks; improve enforcement capabilities; and foster coordination among federal, state, and local agencies.
The bill was introduced in the Senate by Judiciary Committee Chairman Chuck Grassley (R-Iowa) and Sens. Catherine Cortez Masto (D-Nevada), Marsha Blackburn (R-Tennessee), Amy Klobuchar (D-Minnesota), James Risch (R-Idaho), Jacky Rosen (D-Nevada), Bill Cassidy (R-Louisiana), Martin Heinrich (D-New Mexico), Ted Budd (R-North Carolina), Bill Hagerty (R-Tennessee), Lindsey Graham (R-South Carolina), and Steve Daines (R-Montana).
Companion legislation was introduced in the House by Reps. David Joyce (R-Ohio), Susie Lee (D-Nevada), David Valadao (R-California), Dina Titus (D-Nevada), Michael Baumgartner (R-Washington), Brad Schneider (D-Illinois), Laurel Lee (R-Florida), Lou Correa (D-California), Brad Knott (R-North Carolina), Joe Neguse (D-Colorado), Nick LaLota (R-New York), Joe Morelle (D-New York), Mark Amodei (R-Nevada), Salud Carbajal (D-California), Juan Ciscomani (R-Arizona), Henry Cuellar (D-Texas), Troy Nehls (R-Texas), and Jim Costa (D-California).
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