There were 582 supply chain events reported across the United States and Canada in the second quarter of 2023, a 57 percent increase when compared to the second quarter of 2022, according to the latest CargoNet report.

Ongoing shipment misdirection attacks, a kind of strategic cargo theft in which thieves use stolen motor carrier and logistics broker identities to obtain freight and misdirect it from the intended receiver so they can steal it, make up much of the increase.

Over $44 million in shipments were stolen in the second quarter of 2023, Verisk’s CargoNet reported. The average shipment value per event increased nearly $100,000 to $260,703 per theft as cargo thieves focused on high-value shipments.

Theft of a loaded conveyance, such as a full trailer, increased 17 percent year-over-year in the second quarter of 2023. This type of theft was most common in California, Texas, Florida and Illinois, with regional activity around New York City and Philadelphia significant.

Due to increased focus by law enforcement, burglary of a loaded conveyance decreased slightly year-over-year but still remains a significant threat to shipments — especially high-value shipments traveling on the I-40 corridor through Arizona, California and New Mexico, the report noted.

CargoNet has found significant growth in extortion and theft by conversion schemes, particularly in Illinois and California. According to the report, the organized groups in these states focus on obtaining shipments from logistics brokers, tacking on extra (often exorbitant) fees for “various manufactured reasons like overweight tickets or previous rate penalties charged to non-affiliated motor carriers”.

Organized groups have begun to exploit these tactics because criminal enforcement for this type of crime is complex and rare, according to CargoNet.

There were 127 more fictitious pickups of cargo year-over-year, according to the report. Fictitious pickups were most common in the Los Angeles Metropolitan Area.

The report noted some counties recorded a significant problem due to their local industry like Maricopa County, Ariz., Travis County, Texas, Chambers County, Texas, and DeKalb County, Ga.

Shipments from 39 different product categories were stolen in the second quarter of 2023, CargoNet found.

Mainly focused on a smaller grouping of freight, including alcoholic beverages, non-alcoholic beverages — specifically soda and energy drinks, solar power energy generation equipment, as well as various kinds of automobile supplies including auto parts, fluids, oils and tires.

Fictitious cargo pickup relies heavily on subcontracting the shipment to a legitimate motor carrier and having the shipment misdirected to another address, the report stated.