OOIDA Executive Vice President Lewie Pugh will testify this week at a Senate hearing focused on the increase in cargo theft along the U.S. supply chain.
The Senate Surface Transportation, Freight, Pipelines and Safety subcommittee will hold the hearing “Grand Theft Cargo: Examining the Costly Threat to Consumers and the U.S. Supply Chain” at 10:30 a.m. Eastern on Thursday, Feb. 27.
Pugh will provide insight into how freight fraud negatively affects truckers and the overall trucking industry. The Owner-Operator Independent Drivers Association represents approximately 150,000 small-business truckers.
The hearing will focus on the rise in cargo theft and specifically on crimes within the supply chain like brokering scams, fraudulent trucking companies and train robberies by highly organized gangs. Potential solutions, such as increased coordination and enforcement by federal agencies like the Federal Motor Carrier Safety Administration and the Department of Homeland Security, will be examined.
“The increased threat of strategic cargo theft is threatening our supply chains and hurting American businesses and consumers,” said Subcommittee Chairman Sen. Todd Young, R-Ind. “Organized crime units are operating from not only within the U.S. but also internationally from Armenia, Colombia and Mexico and targeting high-value goods to steal and finance their illegal activities like drug smuggling. This hearing will highlight the sophisticated tactics that criminals are using to target freight moving by rail and truck through the Crossroads of America and the rest of the U.S.”
Witnesses for the hearing will be:
- Chief Will Johnson, chief special agent of the BNSF Railway Police Department
- Robert Howell, chief supply chain officer of Academy Sports and Outdoors
- Adam Blanchard, principal and CEO of Tanager Logistics and Double Diamond Transport
- Lewie Pugh, executive vice president of the Owner-Operator Independent Drivers Association
A rise in cargo theft
According to a recent report from New Jersey-based logistics security firm CargoNet, cargo theft activity reached “unprecedented levels” in 2024.
CargoNet recorded 3,625 cases of reported cargo theft across the United States and Canada in 2024, which represented a 27% increase from 2023. The company estimated a total loss of nearly $455 million in freight was stolen in 2024.
Even more concerning, CargoNet said that the criminals have become increasingly sophisticated in their methods and target selection.
“Looking ahead to 2025, CargoNet anticipates a continuation of these trends, with organized criminal enterprises expected to maintain their aggressive targeting of supply chain vulnerabilities,” the company said in its report.
A recent theft of 100,000 organic eggs in Pennsylvania highlighted the criminals’ ability to seize whatever product is in demand. A new report from the U.S. Department of Agriculture predicts that egg prices will increase by 41% in 2025.
Efforts to combat fraud
Earlier this year, the Household Goods Shipping Consumer Protection Act was introduced in the House and Senate. The bipartisan bill would restore FMCSA’s authority to issue civil penalties against bad actors. The legislation also would require brokers, freight forwarders and carriers to provide a valid business address to FMCSA before acquiring operating authority.
The effort is supported by OOIDA, the American Trucking Associations and the Transportation Intermediaries Association.
In the previous congressional session, Rep. David G. Valadao, R-Calif., introduced the Safeguarding Our Supply Chains Act, which aims to improve communication between federal agencies and state and local law enforcement. The bill has yet to be reintroduced in the new Congress.
On the regulatory front, a public comment period is open regarding broker transparency regulations. Proponents of the rulemaking contend that an increase in broker transparency will improve fairness in the trucking industry and help combat fraud.
The public can comment at the Fighting For Truckers website or by going to Regulations.gov and entering Docket No. FMCSA-2023-0257-0001. LL
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