It seems that no matter how hard Dora tries, Swiper will always continue to swipe. Overhaul has released some new quarterly cargo theft data for Q3. To no one’s surprise, cargo theft numbers haven’t improved. Overall cargo theft is up 6.2% compared to Q2.
The average loss value of shipments was $176,290 in Q3 with 5.56 cargo thefts happening on an average day in the U.S.. The main type of cargo theft was pilferage (65%) which is atypical with some of the larger cargo theft trends in which a full truckload might be stolen or someone might be the victim of identity theft.
As for what products were the hottest commodity for theft in Q3, electronics takes home the prize with 30%. The rest of the categories were fairly evenly matched. Miscellaneous goods came in second with 18%, auto parts got 12%, food and drink got 11%, and home and garden took 10%.
An interesting thing to note is that Thursday was the most popular day for theft with 18% of all reported cargo thefts happening that day. Saturday and Sunday have the lowest likelihood of theft. The top location for theft in Q3 was unsecured parking lots with 25% of all thefts happening there. That is separate from truckstops and fuel stops; 19% of all cargo thefts happen there.
Cargo theft rates are climbing, but this is data on reported thefts. The true numbers are significantly higher as not all freight fraud and cargo theft are reported.
TRAC Tuesday. The Future of Freight Festival kicked off Tuesday in Chattanooga, Tennessee. In honor of the first day of the event, the TRAC lane of the week is from Chicago to Chattanooga. This 556-mile trip has spot rates declining to $2.72 per mile. Outbound tender rejections in Chicago have started rising after a sharp decline in rejections. However, rejections have settled in at 7.36%, indicating that spot rates will continue to remain elevated compared to early October or rates over the summer. The impacts of peak season will likely not be heavily felt in this lane, but it could impact freight coming into Chicago, depending on the balance of freight in the market.
Who’s with whom. While the freight recession might be ending, we are entering a slightly different time for the broker segment. Depending on how the freight market recovers over the next few months, brokers and 3PLs could be in a tight spot. Carriers will look to seek rate revenge on shippers, and shippers who have grown accustomed to rates of the past few years are hesitant to accept large rate increases, putting brokers and 3PLs in the middle.
Ahead of that squeeze, it’s looking like a bleak end of 2024 for a significant number of logistics companies. Within the past few weeks, the logistics industry has seen 2,402 job cuts over seven states.
The major players that have had to go through layoffs:
- True Value Co., a hardware wholesaler based in Chicago, filed for Chapter 11 bankruptcy affecting over 1,100 people.
- GXO Logistics Supply Chain Inc., a Connecticut-based warehouse operator, is laying off 343 workers at the Bloomington, California, location.
- CJ Logistics America, the Illinois-based supply chain services provider, is laying off 275 people at its Dalton, Georgia, location.
- DHL Supply Chain, the major shipping company, is laying off 216 employees across multiple locations in Texas as well as Tracy, California.
- PepsiCo Inc. is shuttering a bottling plant and logistics warehouse in Chicago, laying off 131 employees.
There are more but the gist is it’s looking to be a dark winter for those in logistics. If winter is looking surprisingly hectic and you need some hands to lighten the load, this is great news as far as being able to get some highly qualified candidates.
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Brokerage Compliance Symposium
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
F3 Awards Dinner
The night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
F3: Future of Freight Festival
Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowThe night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now