Increased supply chain cargo theft negatively impacts shippers and carriers.

Rising Threat: Theft in the First and Middle Mile of Courier & Express Carrier Supply Chains

In an increasingly connected world, the efficiency and transportation capabilities of courier delivery and express carrier companies are a major factor in the success of all types of commerce.

From retail chains to small businesses, companies rely on these networks to deliver goods swiftly and securely. However, a growing and alarming trend threatens to undermine this trust: the sharp increase in freight and shipment theft during the first and middle mile of the supply chain.

What’s Happening in the First and Middle Mile?

To understand the problem, it’s important to break down the journey of a shipment:

• First Mile: The stage where products leave the supplier, manufacturer, or seller and are transferred to a courier or logistics provider.
• Middle Mile: The segment involving transportation between sorting centers, warehouses, or regional hubs, which can include overland trucking, rail, or air freight.

While last-mile delivery theft (often “porch piracy”) gets significant media attention, a more organized, large-scale problem is emerging earlier in the chain of custody. Between the first and middle miles, cargo is most vulnerable. It is typically handled in bulk, passes through multiple hands, and is stored in less secure facilities or vehicles—conditions that are ripe for criminal exploitation.

Why Is Theft Increasing?

Several key factors are contributing to this spike in theft:

1. Organized Crime Networks: These groups increasingly target high-value or high-volume shipments such as electronics, pharmaceuticals, and luxury goods. They exploit weak points in the chain, especially where security is inconsistent or minimal.
2. Labor Shortages and Insider Threats: Staff turnover and labor shortages can result in rushed hiring, less vetting, and lower training standards. This creates opportunities for insider theft or collusion with external criminals.
3. Limited Surveillance Infrastructure: Many first-mile facilities and transit vehicles still lack sufficient CCTV coverage, GPS tracking, or access controls, especially when subcontractors are involved.
4. Supply Chain Complexity: With third-party logistics (3PLs) and fourth-party logistics (4PLs) playing major roles, accountability can become diffused. When multiple companies are involved, pinpointing responsibility for a loss becomes harder.
5. High Volume, Low Visibility: Express carriers move massive volumes of parcels daily. Amid this scale, missing shipments can go unnoticed for hours or days—giving thieves a critical window of time.

Real-World Examples

Recent reports show alarming patterns: trailers disappearing from unsecured yards, cargo stolen during roadside stops, and goods siphoned off inside distribution centers.

In 2024, cargo theft losses in the U.S. were estimated to have surpassed half a billion dollars (Link 1), a 27% increase over the previous year, with a notable uptick in incidents occurring in transit or at cross-dock facilities used by express carriers. The three most targeted states were California, Texas, and Illinois, which accounted for about 46% of all reported thefts.

Strategic freight theft, as opposed to basic cargo stealing, is also on the rise. This involves criminals using stolen identities from drivers and transportation companies to pick up shipments and take them to multiple locations where they are broken up and re-documented for distribution. (Link 2)

While the numbers may vary depending on the report you read and the areas included in the analysis, this worrying trend reinforces the need for shippers to select their carrier resources carefully and maintain close working relationships. The Express Carrier’s Association, A Delivery Industry Alliance (ECA), excels in this regard, as the organization is committed to networking and fostering open communication and operational excellence among its members.

Impact on Businesses and Consumers

The ripple effects of this trend are significant. For businesses, stolen shipments lead to delayed deliveries, increased insurance premiums, and reputational damage. For consumers, it means longer wait times, out-of-stock products, and reduced trust in online shopping.

In sectors like healthcare, stolen shipments can even pose public health risks when temperature-sensitive medications are compromised.

What Can Be Done?

To combat theft in the first and middle mile, industry stakeholders need to take a layered and collaborative approach:

• Enhanced Vetting and Training: Improved background checks, training on security protocols, and employee awareness programs can help reduce insider risk.
• Technology Investments: Implementing IoT tracking (connected devices with sensors to monitor the location, condition, and status of physical assets in real-time), tamper-evident seals, AI-driven surveillance, and geofencing alerts can all significantly improve monitoring and response times.
• Stronger Partnerships: Carriers, shippers, and law enforcement must share data and coordinate responses to suspicious activity or known theft patterns of behavior.
• Standardizing Security Across Partners: Ensuring that subcontractors and third-party logistics providers all follow consistent security standards.
• Incident Response Protocols: Swift action plans when theft is detected can limit losses and aid in recovery.

Looking Ahead

As e-commerce continues to grow and shipping volumes rise, so too will the temptation and opportunity for theft. For courier and express delivery companies, staying one step ahead means acknowledging that the threat isn’t just at the front door—it’s on the road, in the depot, and often in the early, less visible stages of the supply chain.

The fight against freight theft between the first and middle mile isn’t just a logistics challenge—it’s a security imperative that points to the ever-present need for process diligence, vigilance, transparency, and trust between shippers and carriers.