A new type of organized crime is wreaking havoc in the retail sector. Organized cargo theft is when thieves target cargo shipments. And usually execute elaborate schemes to misdirect massive deliveries away from their intended recipients.

 This surge in stealing shipments of high-value brands is having a significant impact. And it is matched by the decline in traditional smash-and-grab robberies.

According to recent statistics by CargoNet, the United States and Canada have experienced a staggering 57% increase in cargo theft during this quarter, compared to the previous year's data. 

The perpetrators have managed to get away with stolen shipments worth over $44 million in the second quarter of 2023 alone.

These audacious thefts occur on a daily basis in various locations, particularly in Los Angeles, where dozens of freight cars fall prey to thieves exploiting their stops to loot packages. 

The aftermath leaves thousands of abandoned packages and internet-bought goods scattered on the tracks, never to reach their intended destinations.

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Organized Cargo Theft Impacts

Theft of loaded conveyances, such as train cars or full trailers has experienced a 17% year-over-year increase in the second quarter of 2023. 

The states most affected by these thefts include California, Texas, Florida, and Illinois, with significant activity reported around major cities like New York and Philadelphia.

While smash-and-grab burglary of loaded conveyances showed a slight decrease, it remains a significant threat, especially for high-value shipments traveling along the I-40 corridor through Arizona, California, and New Mexico.

Although smash-and-grab robberies still occur, organized cargo theft has become increasingly rampant, leaving industry leaders concerned about the brazen nature of these thieves. 

Cargo thieves target shipments of popular brands, with Nike being one of the most commonly stolen products. 

The rise in average value can be attributed to cargo thieves increasingly focusing on high-value shipments, especially Nikes and other limited-edition items that fetch a premium on the resale market.

Retailers' Close Outlets

These organized criminals employ stolen credentials from logistics brokers or falsified pickup addresses to execute their elaborate schemes successfully. 

Due to the complexity and rarity of criminal enforcement in such cases, these groups have become emboldened to continue their illegal activities.

The average value of each stolen shipment has also surged, with an increase of nearly $100,000, resulting in an average loss of $260,703 per theft. 

E-commerce continues to gain popularity, as retailers navigate the new consumer landscape. Many large retailers have shut down locations to mitigate losses. 

Major retail chains like Walmart and Target have been forced to close stores. Walmart closed stores in Chicago, Portland, and Albuquerque this year. And Target shuttered locations in Minneapolis, Philadelphia, and the DC area.

The surge in organized cargo theft is a pressing issue in the retail sector. These crimes have surpassed traditional smash-and-grab robberies in terms of frequency and financial impact. 

Now that thieves increasingly target high-value shipments and popular brands like Nike, retailers, and law enforcement agencies face a challenge to protect supply chains.