Cargo thieves making insurance difficult

Mashrukh Khan: Strategic cargo theft is emerging as a major force reshaping the logistics insurance landscape, as organised criminal groups increasingly rely on sophisticated deception rather than physical force to divert high-value shipments.

Instead of traditional break-ins, perpetrators are exploiting vulnerabilities in freight operations. Criminals steal the identities of legitimate carriers or brokers, pose as authorised parties, secure loads through double-brokering schemes, or impersonate consignees to take possession of cargo. Because these transactions often appear to be routine handoffs, thefts can go undetected until the goods have already disappeared.

Industry data highlights the scale of the problem. According to Verisk CargoNet, cargo theft losses approached $725 million in 2025, a 60% increase from 2024, even though the number of incidents remained relatively stable across North America. The average theft value rose 36% to roughly $274,000, reflecting criminals’ growing focus on high-value commodities such as electronics, storage drives, computing equipment and other premium goods.

Analysts also report a sharp rise in ‘strategic’ cargo theft, which involves fraud, cyber manipulation and identity impersonation. Some supply chain security analyses suggest these incidents have surged more than 1,500% since 2021, accounting for an expanding share of total cargo theft events.

The trend is placing mounting pressure on logistics insurance underwriting. Insurers are facing higher claim severity and increasingly complex fraud schemes. In response, underwriters are tightening standards by raising deductibles on high-risk cargo, increasing premiums, imposing coverage sublimits and requiring stronger loss-prevention measures from policyholders.

As a result, coverage for certain vulnerable shipments is becoming harder to secure, prompting logistics companies to invest more heavily in verification protocols, shipment tracking technologies and industry data-sharing initiatives to reduce exposure.

Industry experts warn the threat is likely to persist into 2026 as organised criminal networks continue to exploit digital vulnerabilities across global supply chains. Insurers, brokers and logistics providers are increasingly emphasising collaboration and stronger risk controls to mitigate the financial and operational impact of this evolving form of cargo crime.