After 2022 cargo theft increased 15% across the United States and Canada, in Q2 2023, “supply chain risk events” increased 57% year-over-year. All total, 582 incidents valued at $44 million in stolen shipments were reported in North America, according to CargoNet’s second quarter report released July 18.*
As the frequency of cargo theft continues to rise, freight claims automation offers the opportunity to improve operational efficiency and tackle challenges created by escalating cargo theft claims.
Moreover, autonomous logistics solutions streamline claims management and help organizations avoid theft claims, ultimately saving time, resources, and costs.
In the following sections, we explore ways autonomous logistics can address the challenges posed by cargo theft. Find our how we deliver new efficiencies through automation.
* Stats in this blog were updated after initial publication.
Cargo Theft’s Impact on Transportation Economics
Cargo theft’s cost impact to trucking companies and retailers is at least $15 billion to $30 billion per year.
In the second quarter of 2023, theft increased 17% year-over-year for loaded conveyances such as a full trailer. These thefts were most common in California, Texas, Florida, and Illinois. CargoNet analysis indicates the average shipment value per theft event increased nearly $100,000 to $260,703 per theft.
Thieves tend to target specific types of goods. Some commodities are more attractive than others due to their high value or ease of resale. The top commodities targeted in the 2023 second quarter were food and beverage, followed by electronics.
Combined, household goods, electronics and food and beverage commodities account for a significant portion of the overall theft incidents, highlighting the need for businesses in these sectors to prioritize cargo security.
Certain locations and geographical areas are more prone to cargo theft due to factors such as their proximity to major ports, intermodal facilities, distribution centers, and truck stops.
Regional theft activity increased in New York and Philadelphia in the second quarter, according to CargoNet. Theft of high-value shipments is a threat along the I-40 corridor through Arizona, California, and New Mexico.
Autonomous Logistics and its Role in Tackling Cargo Theft
Autonomous logistics goes beyond the traditional route planning concept and encompasses many applications throughout the supply chain.
By considering the supply chain as a logistics continuum, autonomous logistics combines transportation planning with dynamic workflow effectiveness to maximize efficiencies across the entire network. This approach allows logistics service providers (LSPs) and shippers to proactively address cargo theft and implement strategic measures to mitigate and manage potential cargo theft risks.
One of the key benefits of autonomous logistics is the enhancement of supply chain visibility. This goes beyond simply tracking the location of goods in transit and extends to gaining insights into the operational process efficiency.
With improved visibility, businesses can monitor the movement of their shipments and identify potential vulnerabilities or anomalies that may indicate theft or security breaches. Furthermore, autonomous logistics systems provide real-time data and analytics. As a result, businesses make data-driven decisions to strengthen their security measures and minimize the risks associated with cargo theft.
Claims Automation Efficiency through Autonomous Logistics
Digitizing filing processes and tracking claim status updates throughout the lifecycle significantly reduces the need for manual intervention and human error. Likewise, automation accelerates the submission of claims documents to carriers and insurance providers.
And technology-enabled follow-up communications with carriers minimize delays in claim acceptance, denial, dispute, and payment. These factors contribute to a more efficient and effective freight claims management system.
Claims Data Drives Decisions Downstream
- Adjusting carrier selection.
- Modifying routes.
- Enhancing security measures.
A Powerful Tool Against Cargo Theft
By leveraging advanced technologies and data analytics, autonomous logistics enables organizations to gain better visibility over their supply chains, streamline processes, and proactively address risks associated with cargo theft.
Future outlook on logistics automation and cargo theft mitigation
As the logistics landscape evolves and the demand for efficient, data-driven solutions grows, the adoption of autonomous logistics solutions will continue to gain momentum. The industry can expect further technological advancements, such as machine learning and artificial intelligence, to play a more significant role in logistics automation and cargo theft mitigation.
Discover how MercuryGate’s Claims Management can Aid in Cargo Theft Claims
Keep cargo theft claims from holding your operations back. Measure the value of MercuryGate’s Claims Management software. Directly accessible in the TMS, our claims application empowers your organization with the tools and insights to effectively manage and mitigate cargo theft risks.
To explore the benefits of our cutting-edge solution and learn how it can transform your claims management process, see it live in a demo today.
Learn more about how automating freight claims reduces your costs to help protect your bottom line. Watch this webinar today for a short demo of our MercuryGate Quick Claim form.