Federal lawmakers have drawn up legislation aimed at curbing cargo theft across the U.S.
Introduced in the Senate last week, the Cargo Security Innovation Act would require the Transportation Security Administration (TSA) to establish a pilot project that would evaluate the effectiveness of cargo security and law enforcement technologies in combating the escalating cargo theft problem.
Sens. Marsha Blackburn (R-Tenn.) and Amy Klobuchar (D-Minn.), both of whom are senior members of the Committee on Commerce, Science and Transportation, co-sponsored the bill.
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Cargo theft has been continued to remain a consistent concern throughout the national supply chain, jumping 29 percent annually to 645 incidents in the third quarter, according to data from supply chain visibility firm Overhaul. On a sequential basis, cargo theft is up 23 percent from the second quarter.
The theft problem has increased with the proliferation of more organized criminal groups.
For example, in January, nine people were charged in part of a crime ring in which $200 million worth of counterfeit and other illegal goods from China were smuggled into the U.S. at the Los Angeles and Long Beach ports.
A separate L.A.-based crime bust in April saw law enforcement recover $3.9 million in cargo across various storage units, and arrest two men associated with a South American crime ring.
As part of the proposed pilot, the technologies used to fight cargo theft would be deployed at intermodal transportation hubs across the U.S., including airports, land ports and seaports, as well as rail yards.
Up to six pilot sites with elevated levels of cargo theft would deploy and evaluate the technologies. Any technologies used within the pilot cannot be produced in a foreign country.
Not later than two years after the date on which the tech is deployed, the TSA must submit to a report to Congress including a description of the tech, an evaluation of its effectiveness, a cost-benefit analysis and recommendations for scaling or modifying the pilot project.
The pilots would last three years, if implemented. A year after the sunsetting, the Government Accountability Office would send its own evaluation to Congress.
Trade associations and business organizations across various areas of the U.S. supply chain have endorsed the proposal, including the American Trucking Associations (ATA), the Association of American Railroads, the Intermodal Association of North America, the Greater Memphis Chamber of Commerce and drayage and storage company IMC Logistics.
“Skyrocketing incidents of cargo theft undermine our supply chain, raise costs for consumers, and place truck drivers and warehouse workers directly in harm’s way,” said Henry Hanscom, senior vice president of legislative affairs at the ATA. “Due to the complex, multi-jurisdictional nature of these highly sophisticated crimes, only the federal government has the resources to take down organized theft groups.”
These thefts happen all over the supply chain, although the warehouse remains the top spot for incidents to take place.
According to the Overhaul report released late last month, warehouses and distribution centers accounted for 40 percent of incidents where a location was specified. Truck stops and fuel stations ranked second, representing 13 percent of thefts.
From here, it gets fragmented. Unsecured and secured parking lots, the company’s yard/premises, and the cargo’s origin point each accounted for 9 percent of reported thefts.
Tennessee, the state Blackburn represents, has the third-highest share of cargo theft incidents nationwide. While California (35 percent of U.S. incidents) and Texas (22 percent) led the way with a wide margin, Tennessee came in at 14 percent.
“Cargo theft is a pressing issue impacting businesses in Tennessee, and we need to shut down these organized crime groups that steal essential goods from Tennesseans to traffic drugs and weapons,” said Sen. Blackburn, in a statement. “Our bipartisan Cargo Security Innovation Act would help law enforcement bring more of these criminals to justice and disrupt these sophisticated cargo theft rings to protect our supply chains.”
Electronics and food and drinks ranked as the most targeted product categories, each accounting for 17 percent of total thefts.
“Cargo theft significantly impacts the supply chain, harming American businesses and consumers, especially food shippers,” said Sen. Klobuchar. “When criminals break into shipments, businesses are forced to return containers and dispose of compromised products.”
Clothing and footwear reported an 8 percent share of all thefts.
