House committee approves $2M for cargo theft task force

The U.S. House Appropriations Committee has approved a bill appropriating $2 million to establish a supply chain cargo theft and fraud task force under the Department of Homeland Security . [caption id="attachment_57139521" align="alignright" width="300"] (Courtesy/Overhaul)[/caption] The appropriations committee noted in a June 12 report that it “remains concerned with the alarming rise in supply chain fraud and theft through interstate commerce, particularly in the rail, motor carrier and intermodal systems, including attempted burglary, theft of merchandise or possession of merchandise stolen from a railcar and/or motor carrier.” Working with the Department of Homeland Security, the FBI , and state and local law enforcement, the task force will “employ a coordinated, multi-agency, intelligence-based and prosecutor-led approach to identifying, disrupting and dismantling organizations primarily responsible for the theft and theft-related violence in the American supply chain,” according to the report. Formation of the task force was spearheaded by Rep. David Valadao , R-Calif. Its focus on intelligence sharing is valuable, Brandon Fried , executive director at the Airforwarders Association , told Air Cargo Next . “Centralizing intelligence gathering and analysis allows for identifying trends, common theft tactics and areas with high cargo theft activity,” Fried said. “This information can then be used to strategically deploy resources and deter future thefts.” The public-private partnership, or government working together with shippers and associations, is also crucial, he said. “Collaboration with industry stakeholders like trucking associations and freight forwarders is essential,” Fried said. “This two-way communication helps identify vulnerabilities within the supply chain and ensures enforcement efforts align with industry needs.” By the numbers Cargo thefts accounted for between $15 million and $35 million in losses in the United States in 2023. Between 2021 and 2022, 25% of thefts were from cargo warehouses near airports, according to the National Insurance Crime Bureau . These kinds of thefts are less common than road or rail interceptions; however, they can be costly, as was the case in the heist of $14.8 million in gold from Air Canada Cargo in April 2023. Cargo thefts are projected to rise 35% in 2024, according to a March report from risk management solutions company Overhaul . “We’re definitely seeing much more cargo theft activity [this year],” the company told Air Cargo Next at the time. “And the activity that we’re seeing is much more sophisticated and targeted, such as that [criminals] able to get away with much more value in freight” because of improved technological tools . Overhaul’s report also showed that in 2023 there were: 229 cargo thefts in the first quarter; 208 cargo thefts in Q2; 457 cargo thefts in Q3; and 289 cargo thefts in Q4. “A theft by fraud or strategic theft does require a little bit more technical and specialized know-how, but that’s not necessarily difficult to get, especially if you’re already involved in the supply chain and logistics industry,” Danny Ramon , intelligence and risk manager at Overhaul, previously told Air Cargo Next . Resources needed While support from government is a welcome start, the “Airforwarders Association is concerned that with only $2 million allocated, the task force’s effectiveness may be limited,” Fried said. “Since the theft problem is so extensive, we advocate for increased funding to ensure it has sufficient resources to make a significant impact,” he said. “Additionally, addressing cargo theft requires a long-term plan. We therefore emphasize the need for a strategy extending beyond the initial establishment of the task force.” The appropriations committee passed the bill with a 33-26 vote and it will now move to the House floor for a full vote at a later date.

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