Mark Solomon joined DC VELOCITY as senior editor in August 2008, and was promoted to his current position on January 1, 2015. He has spent more than 30 years in the transportation, logistics and supply chain management fields as a journalist and public relations professional. From 1989 to 1994, he worked in Washington as a reporter for the Journal of Commerce, covering the aviation and trucking industries, the Department of Transportation, Congress and the U.S. Supreme Court. Prior to that, he worked for Traffic World for seven years in a similar role. From 1994 to 2008, Mr. Solomon ran Media-Based Solutions, a public relations firm based in Atlanta. He graduated in 1978 with a B.A. in journalism from The American University in Washington, D.C.
When it comes to cargo theft, there is good and not-so-good news. According to security consultancy CargoNet, nationwide incidents of cargo theft last year declined 17 percent from 2016 levels. Yet there were still more than 700 reported incidents last year, involving $89 million of stolen goods. Many more incidents were believed to have gone unreported. The bulk of the thefts occurred over long holiday weekends when drivers take extended breaks and often leave their rigs and cargo unattended.
Businesses are getting smarter, but so are thieves. Shortly after Memorial Day, Scott Cornell, transportation business lead and crime and theft specialist for Travelers Insurance, spoke to Mark B. Solomon, executive editor-news for DC Velocity, about the most current trends in cargo theft and what businesses can do to protect themselves from an expensive loss down the road.
Q: Do you have a read on theft activity over the holiday weekend?
A: This year's weekend wasn't the worst we've seen in terms of number of thefts, though it was slightly above the average weekend. During holiday weekends, it's important for shippers, carriers, and brokers to make sure shipments are secured and to educate drivers on cargo theft tactics and prevention methods. It would be ideal to avoid leaving loads unattended. However, when that's not an option, we recommend a layered approach to protecting shipments. This includes good processes and procedures, staff and driver education, and physical and technological security enhancements.
Q: Five or six years ago, most thefts were yard heists and inside jobs conceived by ex- or current employees in the distribution center. Given the abundance of digital tools and thieves' mastery of them, is the traditional scenario still commonplace?
A: What we call "straight" theft is the most common type of theft, and it happens most often at unsecured locations. However, evolving technology has contributed to a rise in strategic theft, such as identity theft and fictitious pickups, by helping thieves identify their targets and find new ways to trick people. It's important not only to use physical security to protect loads, but also to have strong practices in place for protecting critical information and defending your company from cyber-based threats. Having this type of protection in place for virtual threats is just as critical as the physical protection needed around a yard or for a load in transit.
Q: Over the past five years, how have these tactics evolved? What has changed about the way they are executed?
A: Strategic theft methods have changed over the years. There was a time when we primarily saw two tactics—identity theft and fictitious pickups—but in recent years, we have seen more than a dozen different methods used. These types of cargo theft involve the use of fraud and deceptive information intended to trick shippers, brokers, and carriers into giving the load to the bad guys instead of the legitimate carrier. Organized cargo groups now use strategic methods such as double-brokering scams and "ghost trucks," and they will even trick legitimate trucking companies into picking up the loads for them. Additionally, thieves will combine two or three methods to further complicate things. Victims may not be able to tell how they've actually been hit.
It is important to thoroughly vet all carriers and brokers through the Federal Motor Carrier Safety Administration (FMCSA), Internet search engines, third-party vetting companies, and industry associations. Work closely with shippers to confirm driver identification at the point of pickup, and don't hesitate to contact your customers and business partners if there is any question or concern. Often, the additional scrutiny will deter thieves from pursuing the load in question.
Q: Freight brokers and third-party logistics service providers (3PLs) play key roles in procuring truck capacity for their shipper customers. Do you find these intermediaries are up to speed on anti-theft strategies and tactics?
A: It depends on whom you are talking about. Some larger brokers have dedicated teams with very detailed vetting procedures and security teams that can respond if they have a theft. Others may not have the same awareness or necessary procedures in place or dedicated resources needed to respond because they haven't yet experienced a theft.
Q: It's been said that freight posted on spot market loadboards becomes a target as soon as it is visible. Loadboards are getting more traffic today as spot market demand remains very strong. What are the security holes in loadboard freight and how can they be fixed?
A: Loadboards are as much a victim as the shippers and carriers in this situation. They are being taken advantage of while trying to provide a valuable resource and service, and there's only so much that can be done to stop it. Some boards restrict membership, but even that can be worked around, and when bad guys do get through, it's simple for them to profile a load to target.
In this situation, it's important for users to exercise caution when coordinating through these boards. There are some steps they can take to help keep a shipment safe: First, establish strong pickup security policies and procedures. For example, require the driver to have a specific and secure pickup number to gain access to the load. Second, ensure everyone involved in the haul is who they say they are. This also goes for the freight broker assigned to choose the carrier. Third, check if your insurer offers the right coverages for these perils and has the resources to prevent theft issues and recover goods if the worst happens.
Q: You said at a recent conference that thieves will "go to the well until the well goes dry." Does that mean they will leverage the same scenario until they are stopped? How do shippers and carriers combat this?
A: Thieves know what they're doing. If they know they can target a specific company with good cargo and insufficient preventive measures, they'll do so until someone stops them. But they're also smart enough to move on when law enforcement or the targeted company starts cracking down. We've seen several shifts over the years where law enforcement will be on the lookout for one type of theft, and in response, thieves will shift their tactics to evade detection. Similarly, we've seen thieves make sudden geographic shifts when they realize they've attracted too much attention in one area. For example, we've seen California-based crews move to Arizona, Utah, or Washington to evade detection. This creates a Whack-a-Mole effect.
Q: How much theft can be deterred just with common sense, such as fully vetting a carrier before providing pickup information? Or is that easier said than done?
A: Cargo theft doesn't take only one form, and neither should theft prevention. I can't stress enough the importance of taking a layered approach to protecting loads. Remember, processes and procedures are free, and they are often the best methods to prevent theft.
The U.S. manufacturing sector has become an engine of new job creation over the past four years, thanks to a combination of federal incentives and mega-trends like nearshoring and the clean energy boom, according to the industrial real estate firm Savills.
While those manufacturing announcements have softened slightly from their 2022 high point, they remain historically elevated. And the sector’s growth outlook remains strong, regardless of the results of the November U.S. presidential election, the company said in its September “Savills Manufacturing Report.”
From 2021 to 2024, over 995,000 new U.S. manufacturing jobs were announced, with two thirds in advanced sectors like electric vehicles (EVs) and batteries, semiconductors, clean energy, and biomanufacturing. After peaking at 350,000 news jobs in 2022, the growth pace has slowed, with 2024 expected to see just over half that number.
But the ingredients are in place to sustain the hot temperature of American manufacturing expansion in 2025 and beyond, the company said. According to Savills, that’s because the U.S. manufacturing revival is fueled by $910 billion in federal incentives—including the Inflation Reduction Act, CHIPS and Science Act, and Infrastructure Investment and Jobs Act—much of which has not yet been spent. Domestic production is also expected to be boosted by new tariffs, including a planned rise in semiconductor tariffs to 50% in 2025 and an increase in tariffs on Chinese EVs from 25% to 100%.
Certain geographical regions will see greater manufacturing growth than others, since just eight states account for 47% of new manufacturing jobs and over 6.3 billion square feet of industrial space, with 197 million more square feet under development. They are: Arizona, Georgia, Michigan, Ohio, North Carolina, South Carolina, Texas, and Tennessee.
Across the border, Mexico’s manufacturing sector has also seen “revolutionary” growth driven by nearshoring strategies targeting U.S. markets and offering lower-cost labor, with a workforce that is now even cheaper than in China. Over the past four years, that country has launched 27 new plants, each creating over 500 jobs. Unlike the U.S. focus on tech manufacturing, Mexico focuses on traditional sectors such as automative parts, appliances, and consumer goods.
Looking at the future, the U.S. manufacturing sector’s growth outlook remains strong, regardless of the results of November’s presidential election, Savills said. That’s because both candidates favor protectionist trade policies, and since significant change to federal incentives would require a single party to control both the legislative and executive branches. Rather than relying on changes in political leadership, future growth of U.S. manufacturing now hinges on finding affordable, reliable power amid increasing competition between manufacturing sites and data centers, Savills said.
The British logistics robot vendor Dexory this week said it has raised $80 million in venture funding to support an expansion of its artificial intelligence (AI) powered features, grow its global team, and accelerate the deployment of its autonomous robots.
A “significant focus” continues to be on expanding across the U.S. market, where Dexory is live with customers in seven states and last month opened a U.S. headquarters in Nashville. The Series B will also enhance development and production facilities at its UK headquarters, the firm said.
The “series B” funding round was led by DTCP, with participation from Latitude Ventures, Wave-X and Bootstrap Europe, along with existing investors Atomico, Lakestar, Capnamic, and several angels from the logistics industry. With the close of the round, Dexory has now raised $120 million over the past three years.
Dexory says its product, DexoryView, provides real-time visibility across warehouses of any size through its autonomous mobile robots and AI. The rolling bots use sensor and image data and continuous data collection to perform rapid warehouse scans and create digital twins of warehouse spaces, allowing for optimized performance and future scenario simulations.
Originally announced in September, the move will allow Deutsche Bahn to “fully focus on restructuring the rail infrastructure in Germany and providing climate-friendly passenger and freight transport operations in Germany and Europe,” Werner Gatzer, Chairman of the DB Supervisory Board, said in a release.
For its purchase price, DSV gains an organization with around 72,700 employees at over 1,850 locations. The new owner says it plans to investment around one billion euros in coming years to promote additional growth in German operations. Together, DSV and Schenker will have a combined workforce of approximately 147,000 employees in more than 90 countries, earning pro forma revenue of approximately $43.3 billion (based on 2023 numbers), DSV said.
After removing that unit, Deutsche Bahn retains its core business called the “Systemverbund Bahn,” which includes passenger transport activities in Germany, rail freight activities, operational service units, and railroad infrastructure companies. The DB Group, headquartered in Berlin, employs around 340,000 people.
“We have set clear goals to structurally modernize Deutsche Bahn in the areas of infrastructure, operations and profitability and focus on the core business. The proceeds from the sale will significantly reduce DB’s debt and thus make an important contribution to the financial stability of the DB Group. At the same time, DB Schenker will gain a strong strategic owner in DSV,” Deutsche Bahn CEO Richard Lutz said in a release.
Transportation industry veteran Anne Reinke will become president & CEO of trade group the Intermodal Association of North America (IANA) at the end of the year, stepping into the position from her previous post leading third party logistics (3PL) trade group the Transportation Intermediaries Association (TIA), both organizations said today.
Meanwhile, TIA today announced that insider Christopher Burroughs would fill Reinke’s shoes as president & CEO. Burroughs has been with TIA for 13 years, most recently as its vice president of Government Affairs for the past six years, during which time he oversaw all legislative and regulatory efforts before Congress and the federal agencies.
Before her four years leading TIA, Reinke spent two years as Deputy Assistant Secretary with the U.S. Department of Transportation and 16 years with CSX Corporation.
Serious inland flooding and widespread power outages are likely to sweep across Florida and other Southeast states in coming days with the arrival of Hurricane Helene, which is now predicted to make landfall Thursday evening along Florida’s northwest coast as a major hurricane, according to the National Oceanic and Atmospheric Administration (NOAA).
While the most catastrophic landfall impact is expected in the sparsely-population Big Bend area of Florida, it’s not only sea-front cities that are at risk. Since Helene is an “unusually large storm,” its flooding, rainfall, and high winds won’t be limited only to the Gulf Coast, but are expected to travel hundreds of miles inland, the weather service said. Heavy rainfall is expected to begin in the region even before the storm comes ashore, and the wet conditions will continue to move northward into the southern Appalachians region through Friday, dumping storm total rainfall amounts of up to 18 inches. Specifically, the major flood risk includes the urban areas around Tallahassee, metro Atlanta, and western North Carolina.
In addition to its human toll, the storm could exert serious business impacts, according to the supply chain mapping and monitoring firm Resilinc. Those will be largely triggered by significant flooding, which could halt oil operations, force mandatory evacuations, restrict ports, and disrupt air traffic.
While the storm’s track is currently forecast to miss the critical ports of Miami and New Orleans, it could still hurt operations throughout the Southeast agricultural belt, which produces products like soybeans, cotton, peanuts, corn, and tobacco, according to Everstream Analytics.
That widespread footprint could also hinder supply chain and logistics flows along stretches of interstate highways I-10 and I-75 and on regional rail lines operated by Norfolk Southern and CSX. And Hurricane Helene could also likely impact business operations by unleashing power outages, deep flooding, and wind damage in northern Florida portions of Georgia, Everstream Analytics said.
Before the storm had even touched Florida soil, recovery efforts were already being launched by humanitarian aid group the American Logistics Aid Network (ALAN). In a statement on Wednesday, the group said it is urging residents in the storm's path across the Southeast to heed evacuation notices and safety advisories, and reminding members of the logistics community that their post-storm help could be needed soon. The group will continue to update its Disaster Micro-Site with Hurricane Helene resources and with requests for donated logistics assistance, most of which will start arriving within 24 to 72 hours after the storm’s initial landfall, ALAN said.