Navigating Cargo Theft: Protecting Freight with Communication and Vigilance

The freight industry has been grappling with a significant surge in cargo theft, particularly through fraudulent means.

At Aerona, we are all too aware that these thefts impact all stakeholders including drivers, carriers and freight brokers. 

Craig Leinauer, Director of Inland Marine claims at Travelers Insurance, highlights the emergence of strategic cargo theft. 

Understanding the Rising Threat of Strategic Cargo Theft

This has dramatically escalated in recent years. 

This type of theft now accounts for approximately 33% of all cargo theft incidents, an astonishing increase from just 3-6% two years ago. 

Thieves have become increasingly sophisticated, often impersonating legitimate trucking companies. 

As Leinauer explains, “An imposter might use a trucker’s identity or DOT number to steal cargo, but the real driver has to have physically accepted the cargo to be liable and for his cargo insurance coverage to trigger.” 

This loophole can create significant challenges for truck drivers, who may find themselves liable for losses despite having no involvement in the theft. 

While drivers are often the first line of defence, freight brokers are not exempt from liability either. 

Previously, brokers were not considered liable for cargo loss since they do not handle the freight directly. 

Now though, shippers are increasingly requiring brokers to accept liability contracts, treating them as if they were directly carrying the cargo. 

This new reality stresses the importance of understanding the nuances of liability for all parties involved. At Aerona, we wouldn’t have it any other way. Direct and frequent limes of communication support all parties at all stages.

To combat the rising trend of strategic cargo theft, best practices vary by sector. 

Leinauer suggests that truckers should ensure that the bill of lading matches the rate or load confirmation, particularly confirming addresses during both pickup and delivery. 

Key Strategies to Prevent Fraudulent Cargo Theft

“Always confirm the addresses with the shipper. If anyone attempts to redirect a shipment, contact the shipper immediately to confirm that change,” he advises. 

Equally important is communication. 

If truckers suspect their identity has been compromised, they should notify all freight brokers and confirm that their correct contact information is on file. 

This proactive approach is essential in ensuring everyone is on the same page regarding potential threats. 

Freight brokers can also play a critical role in mitigating risk. 

They should encourage shippers to transmit signed bills of lading to the consignee as soon as the shipment is accepted. 

This practice not only allows the consignee to verify cargo information upon delivery but also minimises the opportunity for fraudulent activities to occur unnoticed. 

A thorough understanding of contracts is vital for all stakeholders. 

“Take time to review contracts, as you need to understand your liability exposure,” Leinauer states. 

It’s essential to ensure that all parties involved agree to provide notice when a shipment is suspected to be susceptible to theft or fraud. 

At Aerona Customs Clearance Agents, we prioritise first-class communication and vigilance in combating cargo theft. 

The Role of Communication and Vigilance in Cargo Protection

We believe that timely communication and a robust policy are critical components in protecting your business from potential losses. 

Working closely with all parties, we emphasise the importance of staying informed and proactive to navigate these complex challenges successfully. 

Together, we can safeguard the integrity of our operations and maintain the trust vital to the freight industry. Check the FAQ section for answers to questions you may have.