The global supply chain makes the world go around, carrying products to their destinations each and every day, and usually right on time.
But all of this has come to an abrupt end over the last two years. Thieves have quickly stepped in to profit off of these newly weakened links in our supply chain.
Transportation and Logistics Getting Hit Hard
Annual Losses From Cargo Theft Alone In The United States
2016
2017
2018
2019
2020
2021
- Blue Bar = Value of Items Stolen
- Yellow Line = Total Number of Thefts
One industry that’s getting hit hard on the front lines is transportation and logistics (T&L.) T&L includes the air and ground express delivery services, freight trains, trucks, cargo ships and more, that store and distribute goods from the manufacturers or warehouses to the consumer.
What makes T&L so vulnerable?
During COVID, consumers shifted their spending from traveling and out-of-home entertainment to things like clothing, electronics, furniture and other home goods and activities. E-commerce orders surged, causing a massive influx of imports ready for delivery.
But shortages of employees, like truckers, to deliver the products, along with rapidly declining warehouse space, to store the products before shipment, is causing unprecedented inventory backups.
Many T&L companies tasked with holding inventory until it can be shipped are now at maximum capacity.
According to global real estate services firm CBRE, as of November 2021, warehouse space availability in the U.S. had reached a record low of 3.6%, a level many experts view as “effectively zero.”
The Problem of Theft
T&L carriers and holding locations – warehouses, shipping ports, rail and truck yards and stops – are often full to the brim with goods sitting idle, waiting to be delivered.
These companies and locations are more exposed than ever to theft, which could lead to massive financial loss for businesses. And this fact isn’t lost on criminals. In the third quarter of 2021 alone:
Union Pacific saw about 90 of its railway containers in LA County jeopardized every single day, resulting in $5 million in damages, losses and claims.
Union Pacific also experienced a 160% increase in theft, assaults and armed robberies along its rails in 2021 overall.
