In a significant move applauded by the American Trucking Associations (ATA), the U.S. House Appropriations Committee has included language in the fiscal year 2025 Department of Homeland Security funding bill to address the escalating issue of cargo theft. This action, championed by Congressman David Valadao (R-CA), directs Homeland Security Investigations (HSI) to establish a Supply Chain Fraud and Theft Task Force and allocates $2 million to support this initiative. This step aligns with ATA’s strategic priorities and seeks to counter the rising tide of cargo theft and broader supply chain fraud.
Cargo theft has become a growing concern for the trucking industry and the broader supply chain. The billions of tons of goods transported by trucks to every American community have increasingly become a target for organized crime, raising costs for consumers and putting truck drivers at risk. The ATA has identified security, including cargo theft and cyber threats, as a critical area of focus.
Rising Cargo Theft Incidents
Recent data from CargoNet reveals a troubling rise in cargo theft. In 2023, cargo theft incidents spiked by 57% compared to the previous year. The trend has continued into 2024, with a 10% increase in the first quarter alone. During this period, there were 925 documented incidents of cargo theft, with an average loss of $281,757 per stolen shipment. The states with the highest incidents of cargo theft were California, Texas, and Illinois, which together accounted for 61% of all cases. Given that motor carriers are not required to report these robberies, the actual number of incidents is likely much higher.
The Appropriations Committee’s Response
The U.S. House Appropriations Committee has recognized the need for a coordinated response to this issue. The 2025 Department of Homeland Security Appropriations Bill report includes a provision directing $2 million to establish a Supply Chain Fraud and Theft Task Force. This task force will focus on countering the rise in cargo theft and broader supply chain fraud, employing a coordinated, multi-agency, intelligence-based, and prosecutor-led approach. The bill also emphasizes the need for the task force to consult with state, local, and federal law enforcement agencies, as well as relevant private sector stakeholders.
Industry Support and Collaboration
The ATA has expressed strong support for this initiative. According to ATA Senior Vice President of Legislative Affairs Henry Hanscom, “The billions of tons of goods transported by trucks to every American community have increasingly become a prime target for organized crime, putting truck drivers at risk and raising costs for consumers. ATA commends the House Appropriations Committee and Congressman Valadao for directing Homeland Security Investigations to leverage its unique cross-border authorities to address this alarming trend. This provision will strengthen the partnership between the government, law enforcement, motor carriers, and our supply chain partners to strike an effective blow against these organized theft groups.”
Mark Savage, Chairman of the ATA’s Law Enforcement Advisory Board (LEAB) and Director of Connected Truck Solutions at Drivewyze, highlighted the changing landscape of cargo theft. He noted that while cargo thefts were less prevalent during his time with the Colorado State Patrol, organized theft groups have become more systematic and sophisticated in targeting the nation’s supply chains in recent years. LEAB is already working with the trucking industry and law enforcement agencies in Florida and California to raise awareness and connect local officers with federal resources.
Implications and Future Steps
The establishment of the Supply Chain Fraud and Theft Task Force represents a significant step in addressing cargo theft. This initiative aims to disrupt and dismantle organizations primarily responsible for theft and theft-related violence in the American supply chain. The coordinated effort between various law enforcement agencies and private sector stakeholders is expected to enhance the effectiveness of anti-theft measures and improve the safety of truck drivers and motor carriers.
The U.S. House Appropriations Committee’s action on cargo theft issues marks a crucial development in the fight against organized crime targeting the nation’s transportation, distribution, and logistics supply chains. By establishing a Supply Chain Fraud and Theft Task Force and allocating $2 million to support this effort, the committee has taken a proactive stance to address the growing problem of cargo theft. This initiative, supported by the American Trucking Associations and championed by Congressman David Valadao, underscores the importance of collaboration between government, law enforcement, and industry stakeholders in safeguarding the supply chain and protecting American consumers.
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