Cargo Theft Losses Are Surging: Is Your Coverage Keeping Up?

Cargo theft is becoming more costly and sophisticated as organized thieves use compromised email accounts, impersonation and other tactics to misdirect high-value shipments. Transportation companies can reduce their exposures by assessing their risk management practices, including their insurance coverage.

Why Cargo Theft Losses Are Getting More Severe

Cargo theft severity has increased as attacks become targeted and sophisticated.

According to CargoNet, cargo theft incidents actually showed a 14% quarter-over-quarter decrease and a 26% year-over-year decrease in the second quarter of 2026, with 677 reported incidents. However, severity has surged as cargo thieves target high-value shipments. Total estimated cargo losses reached $304.6 million, more than double the total losses seen just a year earlier. The average value among thefts with a reported commodity value reached $564,009, although CargoNet notes that several extreme multimillion-dollar losses significantly influenced the average.

High-value metals and technology are drawing particular attention. Metal theft incidents rose from 54 to 80 year over year, while organized groups continued targeting enterprise-grade computer and networking equipment that can be worth millions of dollars per shipment.

Attack methods have also changed. CargoNet says physical theft of loaded equipment and certain non-delivery schemes declined, while compromise-based schemes involving business email fraud and shipment misdirection persisted. Criminals can use compromised accounts to obtain shipment information, impersonate trusted parties and redirect freight.

For transportation leaders, the decline in incident frequency can be misleading. There may be fewer thefts, but this does not necessarily mean less financial exposure when criminals are selectively targeting higher-value shipments.

Managing Cargo Theft Risks

Transportation companies can reduce the risk of cargo theft by tightening security both digitally and physically.

• Look for weak points in your shipment process. Consider everything that happens from loading to unloading, including where the shipment goes and who has access to it, and look for ways to reduce any vulnerabilities that could be exploited.
• Strengthen your cybersecurity. Some modern cargo theft incidents involve compromised accounts, so cybersecurity measures such as anti-phishing training, flagging outside emails and strong multifactor authentication, phishing training, email security and access controls around shipment data can help reduce the risk. Pay particular attention to your shipping data and limit who has access to it.
• Review your routes. If you have experienced cargo theft incidents, determine where these incidents typically occur and take steps to reduce your risk, such as boosting security or adjusting your routes.
• Assess your insurance coverage. If you experience a high-value cargo theft incident, will your insurance provide sufficient coverage? Consider various scenarios before an incident occurs and adjust your insurance if needed.

Questions to Ask When Reviewing Your Cargo Theft Coverage

When reviewing your coverage, there are many issues to consider.

• Which policies could potentially respond to a cargo theft incident? Because modern thefts often involve cyber and impersonation tactics rather than purely physical attacks, coverage can be more complicated. Depending on your policy terms and the nature of the theft, you may have coverage under cargo insurance, crime or cyber insurance policies. Consider how different policies would respond to different types of theft.
• Do you have any coverage gaps? Don’t assume that you’ll be covered for all possible incidents simply because you have some cargo theft coverage. Cargo theft incidents can take many forms, and some policies may cover some incidents while excluding others. Check your policy for exclusions. For example, does a policy that would respond to a cargo theft contain exclusions that could apply when cyber-enabled fraud or impersonation is involved?
• Do your policies work together as intended? A sophisticated cargo theft could potentially implicate more than one policy. Review how your cargo, crime and cyber coverage interact, including applicable exclusions, sublimits and other insurance provisions, to identify potential gaps before a loss occurs.
• Are your limits sufficient? Inflation has increased the value of many shipments, and targeted cargo theft incidents are leading to higher loss severity. When you put these two factors together, there’s a chance that your limits may not be sufficient, especially if they haven’t been updated in a while. Assess your limits, as well as any applicable sublimits.
• How would coverage and liability work in incidents involving partners, clients, subcontractors or vendors? Operations often involve multiple parties, and this can complicate liability issues. Evaluate your contracts and consider how different loss scenarios could play out. If necessary, update your contracts to clarify insurance requirements and responsibility for losses.
• Do your business partners have sufficient cargo theft coverage? It’s one thing to agree that a business partner is liable for losses in certain circumstances. It’s another thing to ensure that your business partner can actually cover a loss. Contracts often include insurance requirements. This is a start, but it’s also important to check coverage periodically to confirm that it is still in place with sufficient limits.

Is your cargo theft insurance keeping up with modern risks? As cargo theft tactics evolve, insurance coverage and risk management strategies need to evolve, too. Heffernan Insurance Brokers can help you review your coverage and determine whether it’s sufficient for today’s exposures. Learn more about how we can help you protect your transportation operation.