Combating Cargo Theft: Utilizing Cloud Video for Logistics and Warehouse Security 

According to Verisk’s 2023 Supply Chain Risk Trends Analysis, there’s been an astounding 59 percent increase in cargo theft when compared to 2022. The problem isn’t expected to go away anytime soon either, with the same study predicting that many of the methods criminals are using to steal cargo will continue for the foreseeable future. In an interview with Forbes, Barry Conlon, Overhaul founder and CEO, said that the spike in cargo theft crime is “unprecedented…I’ve been in this industry now for nearly 30 years. What’s really changed in the last number of years since Covid is the buying community’s willingness to accept product through anonymous sites that they don’t really know a lot about, but they’re getting promises like it’s still in factory packing. That’s what’s really changed here. Supply and demand.” 

For those transporting cargo in the logistics industry, the effects of cargo theft are felt much more closely. A string of cargo theft incidents in Philadelphia saw criminals breaking into trailers while the drivers were asleep in the cab, leading to higher stress for these drivers who are already performing demanding jobs. The waves from this rising issue have many logistics companies looking for proactive security solutions that can help them quickly respond to theft and investigate it thoroughly. 

While there are many systems out there that can aid in securing cargo for logistics and warehousing companies, cloud video security provides a solution designed to streamline investigations and proactively alert organizations to suspicious or criminal activity. In this article, we’ll explore what cargo theft is, how it’s impacting the logistics industry, and how cloud video security can defend logistics companies against cargo theft. 

What is Cargo Theft? 

According to the FBI’s Uniform Crime Reporting (UCR) Program, cargo theft is defined as “the criminal taking of any cargo including, but not limited to, goods, chattels, money, or baggage that constitutes, in whole or in part, a commercial shipment of freight moving in commerce, from any pipeline system, railroad car, motor truck, or other vehicle, or from any tank or storage facility, station house, platform, or depot, or from any vessel or wharf, or from any aircraft, air terminal, airport, aircraft terminal or air navigation facility, or from any intermodal container, intermodal chassis, trailer, container freight station, warehouse, freight distribution facility, or freight consolidation facility.” 

In short, cargo theft is the theft of any cargo from a shipment. As stated above, cargo can include many different kinds of merchandise and happen anywhere from the storage facility to an airplane to a truck. Because of this, cargo theft’s impact is felt broadly and affects multiple different industries, which adds to the devastation it has, not just on the businesses, but on the larger population as well. 

The Impact of Cargo Theft 

Cargo theft’s growing impact shouldn’t be underestimated. In 2019, cargo theft resulted in $139.6 million in losses. In 2023, that number nearly tripled with $331.9 million in losses across organizations. Those losses are primarily affecting warehouses and distribution centers, with 48 percent of crimes being committed in these areas in Q1 of 2024. Because cargo theft is typically a coordinated event between groups of criminals, there tend to be hot spots for this type of crime around the U.S. State-wise, California, Texas, and Illinois, all areas connected to major ports and inland railways, are the most vulnerable, making up 52 percent of cargo theft in the U.S. 

Cargo theft has been an identified issue within the U.S. since 2006, and the impact from this crime is only growing as criminals find ways to navigate around existing security measures or take advantage of blind spots. 

How Pilferage Masks Criminal Activity 

One of the tactics modern thieves are employing against logistics and warehousing companies is deceptively simple, but immensely hard to track.  

Pilferage, which makes up around 25 percent of all cargo theft, is the partial theft of goods from a shipment. When thieves steal only a portion of a truck load while drivers are parked at a warehouse, most drivers won’t even realize a theft has occurred until, at best, the next stop, but realistically not till later in the route. This can sometimes occur between states as well, which adds another layer of complexity, as drivers won’t know which law enforcement entity to report to. In an interview with CBS MoneyWatch, Scott Cornell, a crime and theft specialist for Travelers, said the delivery drivers don’t “have any idea where [the theft] happened…the questions become, ‘who do we report this to?’ Well, if you can’t tell somebody where it happened, you don’t really have anybody to report it to.”  

Having security measures in place is one thing, but compiling evidence to build a case so that your organization can collaborate with law enforcement is another. Pilferage presents the difficult issue of reliably identifying and tracking criminal activity, something that cloud video security can help solve. 

How Cyberattacks Threaten Logistics Companies 

While tactics such as pilferage are still widely used by cargo thieves, other advanced methods, such as cyberattacks, are becoming more prevalent than ever. These attacks from hackers are being used to obtain information about shipment contents and locations, which can then be used to coordinate cargo theft. In some cases, cyberattacks can completely halt shipments, in which cases hackers usually demand some kind of ransom to restore supply chain operations. 

Because the technology used within logistics operations is becoming increasingly cloud-based, it’s vital that these companies find a solution that implements the proper cybersecurity practices to safeguard their data. 

Fighting Cargo Theft with Cloud Video Surveillance 

Cloud video surveillance provides logistics and warehousing companies with powerful tools built to confront cargo theft head on. 

Cover Critical Entry Points 

As most theft and pilferage occurs at warehouses along logistics routes, a complete cloud video security system placed around critical entry and perimeter points can help identify and alert on suspicious and criminal activity. Integrating your video system with access control and intrusion alarms can add to your security coverage by providing visual verification of access or intrusion events, allowing you to proactively respond to criminals who are attempting to access doors or other entry points. Bar code reader integrations can also be leveraged for investigations to track and identify where shipments may be disappearing. 

Stay Proactive with AI-Powered Video Analytics 

Leveraging video analytics, such as person, object, and vehicle detection, as well as loitering, intrusion, and line crossing can help you and your organization strategize against cargo theft and conduct investigations more thoroughly while also reacting to critical situations faster. If you’re dealing with repeat thieves, license plate recognition technology can notify you if a known vehicle enters your property so you can quickly alert law enforcement. If you’re able to identify cargo theft in real-time, utilizing live video monitoring with talk down can also be a powerful deterrent, as you may be able to discourage potential thieves before any loss occurs. For workplace operations, video analytics can also be used to recognize suspicious or unauthorized activity, such as the proximity to unsafe machinery, a person detected in a restricted area, or lack of personal protective equipment. 

Monitor Parking Lots with Powerful Security Cameras 

For large parking lots where trucks may be stopped for hours or days on end, having powerful multisensor cameras to get better coverage of these vulnerable areas can help as well. Cloud cameras for areas that are harder to reach with cabling around your facilities can also broaden your security net, allowing you to place analytics-enabled cameras strategically without connecting to a recorder or server. 

Enforce Cybersecurity Best Practices to Protect Your Supply Chain 

Cybersecurity plays a crucial role in preventing cargo theft by protecting the data that controls logistics operations. Here is how cloud security can help enforce cybersecurity best practices and efforts to prevent cargo theft:  

Implementing multi-factor authentication ensures that only authorized personnel can access critical systems, such as cargo management platforms or warehouse control systems, reducing the risk of insider threats or external breaches. Additionally, limiting system access based on roles ensures that employees only have access to the information and systems necessary for their job, minimizing the risk of unauthorized access to sensitive cargo data. With that feature, you can apply permission changes to users and recorders by adding or removing a user to the cloud surveillance platform.  

Another way to protect your business and prevent cargo theft with strict cybersecurity measures is to always keep video management software and analytics tools up to date to ensure optimal performance. Administrators can be notified when updates are available and can initiate them with the simple click of a button. Reducing the likelihood of vulnerabilities being left unpatched. 

By using an outbound trusted connection, you can enable remote connectivity without the increased risk of port forwarding or punching holes in the firewall. Encrypting communication between devices, systems, and personnel ensures that information about cargo location, routes, and schedules cannot be intercepted and exploited by thieves. 

Finally, ensuring that third-party vendors, such as transportation companies or software providers, have strong cybersecurity practices in place reduces the risk of vulnerabilities in the supply chain being exploited to facilitate cargo theft. 

Share Security Video for Logistics Insurance Claims 

Cloud video security provides an additional layer of protection against cargo theft by providing evidence during insurance investigations so logistics companies can recoup lost revenue due to theft. Additionally, video can also significantly lower insurance costs by allowing logistics companies to settle claims quickly and efficiently, improving ROI in the long term. 

For incidents when cargo has been stolen, most businesses will want to file a loss claim, which covers cargo that has been lost due to theft. The important factor to consider here is that you have documented evidence that can prove the cargo was stolen. Thankfully, cloud video surveillance can provide that evidence. From there, you can leverage cloud-based clip sharing to immensely fast track investigations. Clip sharing allows for easy export and sharing of video clips with law enforcement, insurance agencies, or other members of your team. 

Before filing your claim, be sure you understand your existing insurance policy to determine what’s covered, as well as what additional evidence you may need before submitting. Also, make sure you consider any time frames or national/international regulations that may affect your claim. 

OpenEye’s Cloud Solution Helps Minimize Cargo Theft 

OpenEye Web Services (OWS) provides a powerful cloud video platform for logistics companies to leverage, equipping you with powerful tools to fight cargo theft. 

OWS’ open ecosystem integrates with bar code readers, access control, and intrusion systems for a complete, end-to-end solution, allowing you to leverage your additional security measures for better monitoring of critical entry points around your facilities. Additionally, OpenEye’s AI-powered video analytics search and alert on events such as license plate recognition, person/vehicle detection, loitering, unsafe proximity to equipment, and more, can help minimize cargo theft. OpenEye also offers a wide range of powerful IP cameras for enhanced monitoring, including versatile 20MP multisensor cameras and flexible cloud cameras. 

Clip sharing in OWS allows you to quickly export and share video to your entire team, law enforcement, and insurance for streamlined investigations and resolutions. Finally, OpenEye Web Services keeps your video surveillance and data secure by implementing cybersecurity best practices throughout the platform, including multi-factor authentication, identity management integration, and no open inbound ports. 

Ready to learn about these features? Book a demo with us now to see how OpenEye Web Services can benefit your bottom line and protect your logistics company against cargo theft.