Thefts are costing the industry $35 billion in losses, ultimately impacting consumer cost. Since 2021, there has been a 1500% increase in cargo thefts.
SAN ANTONIO — A San Antonio CEO of a trucking company is sounding the alarm to the U.S. Senate about cargo thefts.
According to the National Insurance Crime Bureau, thefts are costing the industry up to $35 billion annually, raising consumer prices.
On Thursday, Adam Blanchard, co-founder and CEO of Double Diamond Transportation & Tanager Logistics testified before Congress, stating when his company because the target of thieves, he felt he was on his own.
“About a year ago, our American dream turned into a nightmare, when some unscrupulous criminals stole our identity by capitalizing on our good name. They tarnished the reputation, we’d spent a decade, over a decade to earn,” said Adam Blanchard.
Blanchard explained how thieves were able to mimic their website, emails and operating authority to divert loads.
“In just one example, they diverted a full truckload of energy drinks with the retail value well over six figures, over a thousand miles from Texas to California. Because they spoofed my company’s emails, the drivers was tricked into believing, we had made the request for the transportation of that load,” said Blanchard.
Blanchard says thieves were also able to add their counterfeit company to the Federal Motor Carrier Safety Administration website, to appear legitimate.
“Even at this very moment, two Tanager Logistics are listed on the FMCSA’s official website, my company and an imposter,” said Blanchard.
When Blanchard tried to report the thefts to federal, state and law enforcement agencies, he was met with dead ends.
“The Texas Department of Public Safety informed us this wasn’t their jurisdiction. The FBI recorded our information, but never returned our call. The Department of Homeland Security met with us, but refused to investigate. We did our due diligence, but the message was clear, you’re on your own,” said Blanchard.
Other stats show since 2021, cargo thefts have risen 1500%, with the average theft costing $200,000.
For Crimes this sophisticated and complex, what frustrates Blanchard the most is how there’s no coordinated response from law enforcement.
Here is what Blanchard says Congress can do.
“First, direct the FMCSA, the Federal Motor Carrier Safety Administration, to remove illegitimate carriers and brokers from the Safer website. The industry should be able to trust what’s safe, and publicize only legitimate entities, so that we can make informed decisions, when vetting business partners,” said Blanchard.
Second, pass the Safeguard Our Supply Chain Act, which would establish a federal task force dedicated to cargo theft.
Third pass the Household Goods Shipping Consumer Protection Act, which would strengthen penalties against bad actors, and protect consumers,” said Blanchard.
Blanchard believes these changes by Congress will protect businesses, and consumers.
“Currently criminals view trucking as a low risk, high reward target. We must invert that calculus,” said Blanchard.
If you would like to see the testimony in full, you can click here.
You can read the statement from Blanchard on senate testimony related to freight theft in the truck industry below:
On Thursday, February 27, I was proud to testify before the U.S. Senate Commerce Subcommittee on behalf of the American Trucking Association (ATA) to shed light on the serious and growing problem of freight theft in the U.S. trucking industry and advocate for legislation to help fight it. Freight theft does not just threaten trucking companies, it threatens the U.S. supply chain and ultimately U.S. consumers, public safety and national security. Exasperating the problem is the fact that there has been virtually no recourse for trucking companies that have been the victims of freight theft as local, state and federal law enforcement agencies have either had no jurisdiction or are otherwise unable to help us to identify and punish these criminals.
My companies, San Antonio-based Double Diamond Transport and Tanager Logistics, have been the victims of various forms of freight theft. Most recently, through a sophisticated identity theft scheme that is common in our industry, our company identity was stolen. A bad actor, representing themselves as Tanager Logsitics, was able to steal and sell a truckload of goods to another motor carrier. Beyond the significant monetary impact to our small business and others, our outstanding reputation was sullied in the industry, and we’ve had to work hard to explain the issue to our customers and business partners in order to restore it. Unfortunately, local and state law enforcement said they had no jurisdiction in this matter, and federal agencies were not responsive.
The Federal Motor Carrier Safety Administration (FMCSA) has within the last 9 months implemented a fraud prevention team to help address these crimes, and my companies have worked alongside the ATA to urge Congress to provide oversight and legislation to ensure that the FMCSA and other regulatory bodies have stronger mechanisms to help us detect and respond to these scams in real time. More importantly, federal agencies must prioritize cyber capabilities to track and shut down these criminals before they can continue defrauding businesses like ours, and ultimately defrauding U.S. consumers.