By Andrea Wells
Cargo theft has reached record levels across the United States, prompting some insurers to increase rates, raise deductibles, and impose new coverage exclusions as criminals employ increasingly sophisticated methods to steal freight.
Scott Cornell, executive vide president, SPG Cargo & Logistics, and crime and theft specialist for LogistIQ Insurance Solutions, said the dramatic rise in strategic cargo theft has complicated risk management for trucking companies, freight brokers, and their insurers.
In the first five months of 2026, Verisk CargoNet recorded 1,120 cargo theft incidents and more than $121 million in estimated losses. In 2026, estimated losses more than doubled to $304.6 million, while theft incidents across the U.S. and Canada fell 26% year over year.
Organized crime continues to strong arm the cargo industry, Verisk CargoNet notes, where organized theft groups increasingly targeted high-value shipments with cyber tactics like business email compromise.
Business email compromise continues to be the primary access point for most sophisticated cargo theft schemes, which gain access to shipment information, communications, contacts, and transportation management tools to identify high-value shipments, impersonate trusted parties, and alter shipment details while appearing legitimate, according to Verisk.
However, Cornell cautioned that traditional cargo theft remains the industry’s largest exposure. “A lot of people lose sight of the fact that straight theft is still 70% of all cargo theft,” he said.
Traditional theft occurs when criminals physically steal freight from trucks, trailers, warehouses, or parking facilities. Cornell said theft of individual pallets, known as pilferage, has also increased as criminals seek to avoid tracking devices installed in commercial trucks.
“There’s an old adage that we use in the industry: freight at rest is freight at risk,” he said. “Anywhere that the freight stops and sits is where it’s going to be stolen. So, that’s truck stops, drop lots, parking lots, staging lots, outside of warehouses and distribution centers.”
The surge in theft has prompted some insurers to reconsider their underwriting approaches.
“When cargo theft exploded, we started to immediately see more exclusions around theft across the insurance industry,” Cornell said. That trend is not going to apply to every insurance carrier, he said, but risks without good loss mitigation, risk mitigation in place around theft, will probably see increased rates, increased deductibles, and exclusions.
Some insurers have eliminated theft protection from standard cargo policies, requiring insureds to purchase separate coverage.
He said effective risk management begins with established procedures, employee training, and careful vetting of transportation partners rather than relying exclusively on cargo theft technology.
For freight brokers, that includes recognizing suspicious carrier credentials and fraudulent pickup attempts. For trucking companies, it means educating drivers about high-risk routes, parking locations, and cargo theft hotspots.
“If you lean too heavily into the technology and you leave the human element out of it, the technology will ultimately fail you,” Cornell said. Drivers, he added, remain essential to preventing traditional theft. “Your first and best line of defense is always your driver.”
Cornell also encouraged insureds to make sure their agents communicate their loss prevention investments to underwriters. Companies demonstrating stronger-than-average security practices may qualify for better coverage and pricing.
Plus, it’s a great way to bond with the client, he said. “Show your client that you have an interest in their success, and it’s mutual success. The better the client is at preventing the theft, the better that you can help stabilize their rates, help stabilize their coverages.”
He advises to first review the client’s process and procedures for theft prevention. “Don’t go right to technology, don’t go right to hard locking devices, don’t go to those things until you have good process and procedures in place,” he said.
Good process and procedures include good education as well, he added. “Then you go to things like hard locking devices if you’re a trucking company, or if you’re a freight broker, you go to some of the vetting technology platforms that help you vet carriers.”
Then hire good drivers, Cornell said. Good companies get good drivers.
“I think if a company operates well, treats their people well, and not only do they pay well, but they try to be creative around what can they offer their drivers,” he said. “There are companies out there that will offer free online college education, a two-year college education for a driver’s child.” Or full gym options, health dieticians, some even collect the driver’s mail for them, he said. “As a cargo theft expert, when you talk about street theft, your first and best line of defense is always your driver.”
