Rising Cargo Risks Prompt Urgent Industry Calls for Stronger Supply-Chain Defenses

IATA said concealed hazardous goods commonly included not only lithium batteries but also undeclared e-cigarettes and aerosols.
The SmartSense survey found that 79% of respondents were more concerned about cargo theft than ever before, and 63% said incidents had increased compared with the previous year.
The survey also found that 80% of respondents said cargo theft had caused lost sales; 28% reported annual cargo-theft losses exceeding $2 million.
CargoNet’s 2024 analysis found that every quarter of 2024 exceeded the previous quarterly record highs set in 2023.
Cargo theft and hazardous-goods concealment are spiraling out of control, forcing supply-chain operators to rethink security. IATA says 80% of dangerous-goods incidents in the first half of 2025 involved undeclared or hidden items, mostly lithium batteries. Meanwhile, a survey of U.S. loss-prevention leaders found that 81% reported theft had become more organized, and 40% logged annual losses of at least $1 million.
The problem goes beyond screening checkpoints. Criminals now use fraudulent credentials, forged documents and strategic rerouting to steal high-value shipments. Air Cargo Week reports that security inspections alone cannot stop undeclared goods from entering the supply chain. Some ports, like Singapore, are deploying AI to flag shipping anomalies, but experts say stronger verification across the entire network is essential.
Dangerous goods are slipping through supply chains at alarming rates. IATA found that 80% of hazardous-materials incidents in H1 2025 involved items that were not declared or deliberately hidden. Lithium batteries dominate the list, but undeclared e-cigarettes and aerosols also pose fire and safety risks. Air Cargo Week notes that no screening process can catch every concealed item, especially when shippers lie on documentation or package hazards deceptively.
Cargo crime is no longer opportunistic pilfering—it is now a coordinated criminal enterprise. A 2025 SmartSense survey of U.S. loss-prevention leaders found 79% were more worried about cargo theft than ever before. Worse, 81% said theft had become more organized, and 63% reported that incidents had increased year-over-year. The financial toll is staggering: 80% of respondents said cargo theft caused lost sales, and 28% reported annual losses exceeding $2 million.
CargoNet's 2024 analysis shows the problem is accelerating. Every quarter in 2024 surpassed the previous quarterly record from 2023, signaling that criminals are stealing more, faster. The FBI's Memphis Cargo Theft Task Force, which has tracked major freight crime for nearly two decades, points to a shift in tactics: thieves now exploit fake carrier credentials and altered shipping documents to hijack entire loads bound for warehouses or retailers.
Modern cargo theft relies on deception rather than brute force. Criminals forge carrier IDs, create fake shipping papers and reroute shipments to accomplices. FreightWaves reports that the FBI's Memphis task force has dismantled organized rings that targeted warehouses, tractor-trailers and chop shops across multiple states. They use fraudulent credentials to gain access to secure facilities or convince drivers to hand over cargo destined for high-value destinations.
IATA argues that security screening alone cannot stop this type of crime. The association calls for a layered defense: stronger verification of shipper identity, real-time document validation, carrier credential checks and supply-chain transparency. Without ongoing oversight throughout the entire network—from shipper to receiver—screening at one checkpoint simply pushes the problem downstream.
Singapore's port authority has deployed AI-powered anomaly detection across millions of cargo shipments to flag suspicious patterns. The system scans manifests, shipper histories and routing data to catch inconsistencies that signal theft or fraud. Air Cargo Week notes that such technology can help, but only when paired with manual verification and strong partnerships across the supply chain.
Industry experts agree: one solution will not work. IATA pushes for stronger shipper oversight, carrier credential validation and international cooperation. Loss-prevention leaders in the U.S. survey also stressed the need for real-time communication between shippers, carriers and receivers to verify every handoff. Without a coordinated defense, criminals will continue exploiting gaps and costing the industry billions in stolen cargo.
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