Metals theft has been an ongoing issue for the scrap metal recycling industry. Today recyclers are facing a new twist on this age-old problem. Theft of truckloads of copper scrap has increased as the price of copper has increased.
Cargo Theft and Copper Prices
Copper demand has been rising due to rapid growth in renewable energy, data centers, and other sectors of the economy that rely on copper for wiring and construction. According to a July article in The Wall Street Journal, copper prices have subsequently surged to record highs, increasing 35 percent in the U.S. since the beginning of this year. New tariffs on copper imports have also contributed to soaring price increases. This has made the metal a new target for thieves who have turned to stealing copper freight as it is being transported.
According to the Journal article, stealing copper scrap by the truckload has become lucrative for thieves because the material has already been loaded into a vehicle which can then be driven away. These criminals are engaged in strategic cargo theft, using sophisticated online methods to identify and steal loads of material, using internet platforms that match loads that need to be hauled with available drivers.
The risk assessment company Verisk CargoNet identified copper last year as a top emerging targeted commodity, pointing to a link between cargo theft and copper prices. The firm reported that in 2024 copper cargo theft surged, leading to a 26 percent increase in thefts from shipping operations in the U.S. and Canada. This year it is expected to surpass that increase, as reported thefts in the first half of this year are up 61 percent compared with the same period last year.
The Recycled Material Association (ReMA) website cites the United States and Canada 2024 Cargo Theft Report from the supply chain risk management company Overhaul. According to their report, freight hubs and major cities across the U.S. witnessed an alarming surge in cargo theft. These incidents rose by 49 percent in the first half of 2024 compared to the same period in 2023.
Reducing Cargo Theft
Several organizations have provided guidance to help scrap recyclers and others reduce cargo theft. The National Motor Freight Traffic Association (NMFTA) offers an online resource, Cargo Theft Prevention: Tips to Protect Your Cargo. According to the NMFTA guidance, these are some of the common cargo theft tactics:
Straight Cargo Theft – This type of cargo theft simply involves breaking into places containing goods and stealing items to sell. It often happens in parking lots, railyards, and other locations where a driver or another worker may leave goods unsupervised. Straight cargo theft is becoming less common as thieves turn to lower-risk methods.
Strategic Cargo Theft – This is relatively common and involves identifying and exploiting a weakness in the supply chain. For example, a criminal may pose as a legitimate shipper, create a fictitious brokerage, or use other fraudulent techniques to gain the trust of their targets. This enables thieves to illegally obtain large quantities of goods without the risk of physically breaking into a building or vehicle.
Pilferage Cargo Theft – This occurs when criminals steal small amounts of cargo from a vehicle. Often, they fraudulently edit the bill of lading to make the theft more difficult to detect. The crime can be difficult to identify and prosecute because shippers often struggle to identify the point at which the goods disappeared after the fact.
Cyber Cargo Theft – This is a relatively recent form of theft involving sophisticated cyberattacks during which criminals typically infect a company’s computer system with malware via phishing emails. They then use this malware to access genuine shipping documents, enabling them to pose as legitimate shippers and gain access to entire shipments.
To reduce cargo theft, NMFTA recommends companies:
- Ensure goods remain supervised throughout the shipping process to reduce the chance of opportunistic cargo theft.
- Familiarize yourself with cargo theft hot spots along your regular routes and put extra security in place in these locations.
- Install high-quality doors, air cuffs, and landing gear locks in every vehicle.
- Verify the identity of anyone claiming to be a shipper and thoroughly check truck and trailer identifiers.
- Cross-reference contact information against official sources whenever you receive communication from a shipper or broker to ensure it’s genuine.
ReMA’s website features a “Prevention of Cargo Theft Toolkit” which offers insights and strategies to safeguard recyclers’ shipments. According to their document, two primary aspects of cargo theft prevention are to:
Know Your Insurance:
- Shipping your own material on your own truck:
Confirm your insurance coverage has “transportation” coverage in the amount of the load’s value being shipped. Ensure theft is covered and up to the limit needed. Make sure your policy doesn’t have restrictions.
Know Your Freight Broker:
- Broker Service Agreements
- Demand a broker services agreement that prohibits sub-brokering of loads.
- Require the service agreement to prohibit carriers with less than one year of authority.
- Brokers should ensure the carrier’s insurance is active.
- Ensure the broker is aware of the value of the commodity.
- Ensure the broker’s common carrier has “motor truck cargo” coverage for the property with clear understanding of coverage limits.
- Suppliers/dealers should maintain their own transportation insurance coverage in addition to the carrier’s coverage, with the supplier’s insurance acting as excess coverage.
- Consider having your broker dispatch most trucks.
- Surety is not coverage for cargo but to ensure payment.
- The broker should have the name of the carrier physically moving the product on the Bill of Lading.
Despite swings in the price of copper, law enforcement officials believe cargo theft will remain a serious problem. Recyclers are encouraged to implement some of the above steps to make sure their cargo reaches its destination in a safe and timely manner.
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