Cargo theft has long been a concern for supply chains of high-value products such as electronics and other consumer goods, but in recent years food and beverage cargo is now one of the most stolen categories of freight, according to Thom Albrecht, Chief Revenue Officer for Reliance Partners, a fast-growing commercial insurance agency in trucking and logistics.

In fact, in the United States alone millions of dollars’ worth of consumables are lost each year to theft during transport, at distribution centers, or from unsecured warehouses.

But cargo theft doesn’t just hit the bottom line, Albrecht points out. It undermines supply chain trust, impacts insurance rates, and can even lead to shortages of food products on grocery shelves. In addition, food companies and their providers may suffer long-term reputational damage if stolen goods are tampered with or end up on the black market.

Quantifying the Problem

Record-breaking cargo theft activity across the United States and Canada reached unprecedented levels in 2024, with 3,625 reported incidents representing a stark 27% increase from 2023, according to an annual analysis by Verisk CargoNet, a business unit of Verisk which is a leading global data analytics provider. The estimated average value per theft rose to $202,364, up from $187,895 in 2023.

Geographic trends show California and Texas experiencing the most significant increases in theft activity, according to Keith Lewis, Vice President of Operations with CargoNet. California reported a 33% rise in incidents, while Texas saw an even more dramatic 39% surge. Other states with high rates include Illinois, Florida, Georgia, Tennessee and Arizona.

Unlike electronics or luxury goods, stolen food items can be harder to trace due to their lack of serial numbers or traceable packaging. This makes them attractive to criminals, especially when demand for certain products spikes due to supply chain disruptions, inflation, or natural disasters.

While 2023 saw frequent theft of high-value or high-volume food products such as energy drinks, 2024 marked a strategic pivot by organized criminals. These organized criminals now are targeting specific consumable goods such as produce, avocados, nuts, vitamins and supplements, including protein powder.

Organized Criminals Dominate Food Cargo Theft

Cargo theft is a multi-billion-dollar criminal enterprise worldwide, and while both straight theft (otherwise known as “tactical”) and organized criminals engage in it, organized crime rings are proving to be far more effective, efficient, and damaging, according to Albrecht. What makes organized crime more successful and dangerous in cargo theft than their tactical counterparts?

Straight theft is done by tactical criminals who oftentimes are opportunists, according to Scott Cornell, National Practice Leader with Travelers Inland Marine, a major insurance provider that serves companies that haul cargo. “These typically are small crews, usually people who are related or have known each other since childhood, and they are relatively unsophisticated.”

“They are physically on location and they go straight out to the cargo, they steal it where it sits,” Cornell explains. “They rely on short-term planning, limited resources, and impulsive decisions.” A classic example might be a thief or small crew who target an unattended truck at a truck stop or an under-secured facility.

On the other hand, organized criminals operate like a business, says Cornell. They have structures, hierarchies, logistics networks, and sometimes even connections within shipping companies or logistics providers. They oftentimes work across multiple states or even countries, so if one operation is compromised, they shift to another. They diversify the types of goods they steal and can carry out multiple heists at once. This level of redundancy makes them more resilient and profitable and less likely to get caught.

The significant cargo theft problem was the topic of discussion among Thom Albrecht with Reliance Partners Insurance, Will Johnson with BNSF, Scott Cornell with Travelers Inland Marine, and Keith Lewis with CargoNet at the recent Food Shippers Conference.  

Organized rings conduct strategic planning and surveillance on potential targets. They study patterns, track routes, and analyze vulnerabilities in the supply chain. Tactical criminals may strike when opportunity arises, but organized groups create the opportunity.

Organized criminals can gain access to insider knowledge such as real-time data on shipments, routes and security protocols by bribing employees. They also can use advanced tools to intercept communications, clone GPS signals, and hack into TMS or WMS systems to reroute shipments or impersonate legitimate carriers —techniques that are far beyond the reach of a tactical criminal opportunist.

Stealing a truckload of goods is only half the battle. Cargo thieves oftentimes have pre-arranged channels to offload and resell stolen cargo—whether through gray markets, online platforms, or distribution networks. Tactical criminals, in contrast, often lack the means to convert goods into cash quickly or safely.

Ways to Combat Organized Cargo Theft

There are a number of ways to minimize the risk of cargo theft throughout the food chain.

First, make sure your facilities and equipment are fully secure and proper security protocols are in place. Incorporate into your operations tamper-evident seals and packaging to deter or reveal theft attempts. Whether cargo theft activities involve hijackings or break-ins, physical attacks on trucks while in transit or parked overnight remain common—especially in known hotspot areas.

Second, food shippers need to thoroughly vet carriers and third-party logistics providers. This includes asking questions such as: What are your onboarding and monitoring processes? Do you post to public or private load boards? What are your verification and compliance policies, and what software do you use?

Third, invest in technology, whether that includes cybersecurity technology, GPS tracking and geofencing for real-time location monitoring and alerts. In fact, some industry experts recommend using at least two tracking devices per trailer. Lastly, thoroughly train your employees to recognize signs of fraud or infiltration. They should be trained to recognize any bill of lading or other fake documents that look suspicious. Train them to recognize a fictitious pick-up that could involve a nervous criminal posing as a legitimate truck driver and ensure they verify drivers they don’t know.

Moving Forward with a Secure Food Chain

While tactical criminals may pose a nuisance, it’s organized criminal groups that represent the real, sustained threat to global cargo security. As global food supply chains become more interconnected, protecting cargo from theft must be a top priority. The stakes are high—not just in dollars lost, but in consumer safety and supply chain resilience.

In a world where the efficiency of the supply chain is more critical than ever, food companies must shift their focus from just protecting assets to fully understanding and disrupting the organized networks that threaten them. When they invest in smarter logistics, stronger partnerships, and a culture of security awareness, they effectively defend against the evolving threat of cargo theft.

Related Articles:

• Bipartisan Bill to Crack Down on Cargo Theft
• Food Shippers Conference Highlights Key Focus Areas: Technology, Theft and Tariffs
• Ask Our Experts: Food Safety & Security
• How to Navigate Cargo Security and Food Safety Challenges

Like this kind of content? Subscribe to our "Food For Thought" eNewsletter!

Now more than ever, professionals consume info on the go. Distributed twice monthly, our "Food For Thought" e-newsletter allows readers to stay informed about timely and relevant industry topics and FSA news whether they're in the office or on the road. Topics range from capacity, rates and supply chain disruption to multimodal transportation strategy, leveraging technology, and talent management and retention. Learn More