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2023 Third Quarter Supply Chain Risk Trends Analysis

JERSEY CITY, N.J. — CargoNet® has recorded 692 events across the United States and Canada in the third quarter of 2023, a 59% increase when compared to the third quarter of 2022. Like in the second quarter of 2023, much of the increase is due to ongoing shipment misdirection attacks, a kind of strategic cargo theft in which actors use stolen motor carrier and logistics broker identities to obtain freight and misdirect it from the intended receiver so they could steal it. In total, thieves stole over $31.1 million in shipments in the third quarter of 2023.

In the third quarter of 2023, reported thefts increased in every event category. Documented strategic cargo theft events increased 430% year-over-year and theft of a loaded conveyance such as a full trailer increased 4% year-over-year. These kinds of thefts were most common in California, Texas, Florida, Georgia, and Illinois. CargoNet also recorded a significant increase in the "other" category, which combines several categories of reports like identity theft complaints, hostage loads, late shipment complaints, and other kinds of criminal intelligence records.

2023 Third Quarter Supply Chain Risk Trends

As we enter the final quarter of 2023, there is no indication that cargo theft activity will slow in the domestic United States. We anticipate that strategic cargo theft will remain at unprecedented levels of activity throughout the quarter. We caution the industry that throughout this year, strategic cargo theft rings have picked up activity around holiday periods. Additionally, strategic cargo theft groups have widened their preferred commodity targets to include truckload shipments of metal like copper, brass, and aluminum, apparel - especially officially licensed sports apparel, and shipments of personal care and beauty products.

We also caution that strategic cargo theft groups continue to pioneer new methods of strategic cargo theft that seek to evade common compliance practices used by logistics brokers. Strategic cargo theft groups have shown keen interest in perpetrating fraud against small motor carriers or owner/operators with intent of hijacking their accounts or convincing them to solicit shipments from logistics brokers on their behalf. Both strategies seek to evade identity theft checks a logistics broker may do prior to tendering a shipment.

CargoNet remains committed to our efforts to mitigate strategic cargo theft and assist law enforcement agencies investigating these crimes. Please report any suspicious activity to law enforcement immediately and contact CargoNet only after law enforcement has been notified and there are no immediate threats to life or property.

For more information, contact:

Michelle Pantina

Media Contact:

Mary Keller