Evaluating Legislative Efforts to Expand FMCSA's Authority Over Cargo Theft

In recent years, the alarming rise in cargo theft has emerged as a significant challenge for the transportation and logistics industries, prompting lawmakers to reconsider the regulatory frameworks governing freight security. This article, "Evaluating Legislative Efforts to Expand FMCSA's Authority Over Cargo Theft," delves into the ongoing discussions surrounding the potential expansion of the Federal Motor Carrier Safety Administration's (FMCSA) jurisdiction to combat this pervasive issue.

With estimates suggesting that cargo theft costs the industry billions annually, the need for a robust legislative response is evident. Policymakers are exploring various legislative proposals aimed at enhancing FMCSA's authority, enabling more effective monitoring, investigation, and prosecution of cargo theft incidents. Evaluating these legislative efforts requires a comprehensive understanding of the current regulatory landscape, the implications of expanded authority, and the collaboration between federal, state, and local law enforcement agencies. Furthermore, it necessitates an examination of the balance between increased regulatory oversight and the operational realities faced by carriers and shippers. As stakeholders grapple with these complex issues, it becomes imperative to assess the potential impact of proposed measures not only on the efficacy of theft prevention but also on the overall efficiency and competitiveness of the supply chain.

Agency should be ‘quarterback’ among law enforcement agencies, broker CEO tells senators

The Federal Motor Carrier Safety Administration (FMCSA) is falling short in effectively tackling the alarming rise in cargo theft within the trucking sector, as noted by industry representatives affected by such criminal activities. Adam Blanchard, CEO of Double Diamond Transport and Tanager Logistics LLC, based in San Antonio, expressed this concern during a testimony before the Senate Commerce Committee's surface transportation subcommittee. "One persistent challenge we've observed is that FMCSA is lagging behind the evolving tactics employed by these criminal enterprises," he stated.

Blanchard emphasized that FMCSA should take the lead in coordinating a comprehensive federal initiative involving various agencies and law enforcement bodies to combat these issues. He advocated for the establishment of a centralized database to facilitate better coordination between federal and state law enforcement and to enhance cybersecurity measures to mitigate these incidents.

Blanchard's testimony stemmed from his own experience with a cargo theft operation that began over a year ago. He recounted how fraudsters masquerading as his brokerage successfully brokered loads to unsuspecting carriers, diverting shipments while pocketing the payment. "In one notable case, criminals redirected a full truckload of energy drinks valued at over six figures from Texas to California. By spoofing our company’s email communications, they misled drivers into believing they were authorized to transport the load," he explained.

FMCSA's Safer Database

A review of FMCSA's SAFER database revealed a "Tanager Logistics LLC" operating in San Antonio and another in Westerville, Ohio, the latter listed as "active" but lacking proper operating authority. Blanchard’s legal counsel discovered that the Ohio listing was linked to an individual with no connections to the trucking industry, with the fraudsters traced back to locations in Africa.

"We presented this information to FMCSA, yet they have declined to remove the incorrect listing," Blanchard said. "This has led to us facing unjust backlash from motor carriers who were also victims of the scam. Through no fault of our own, we found ourselves blacklisted by factoring companies due to fraudulent invoices and payment issues with those carriers."

He continued, "Our attempts to report these crimes resulted in frustrating encounters with federal, state, and local law enforcement, where we felt unsupported and alone in our efforts." In a separate testimony, Will Johnson, chief special agent of the BNSF Railway Police Department, representing the International Association of Chiefs of Police, reported that cargo theft in the trucking industry has surged by 1,500% from 2022 to 2025, now accounting for one-third of all cargo theft incidents, according to data from CargoNet.

The Trend on Freight Rail Sector

This trend is also evident in the freight rail sector. In 2024, the costs associated with cargo theft for the nation’s Class I railroads surpassed $100 million, as reported by the Association of American Railroads (AAR). The AAR also estimated over 65,000 thefts in 2024, marking a roughly 40% increase from the previous year and highlighting a troubling rise in armed suspects, raising concerns regarding the safety of law enforcement engagements.

In response, Johnson urged legislators to empower federal regulators with greater authority to combat cargo theft effectively. He suggested the establishment of a federal supply chain crime coordination center and a dedicated task force for supply chain fraud and theft.

Moreover, he proposed modernizing FMCSA’s vetting procedures to incorporate stronger authentication methods, real-time verification of carriers, and stricter controls surrounding the sale or transfer of DOT and motor carrier numbers, alongside heightened penalties for cargo theft. Lewie Pugh, vice president of the Owner-Operator Independent Drivers Association, testified on behalf of independent truckers, asserting that FMCSA might not require additional funding for enforcement but rather a reallocation of existing resources. “They often claim that this issue does not significantly impact safety and is therefore outside their purview, but we know otherwise,” Pugh stated.

He highlighted that, given the narrow profit margins in trucking, losses of $3,000 to $4,000 due to scams can severely hinder operations, impacting funds needed for vehicle maintenance and safety improvements. Subcommittee Chairman Todd Young, R-Ind., expressed openness to all proposals, acknowledging that FMCSA currently lacks mechanisms to identify and eliminate fraudulent entities from its records, as well as the statutory authority to impose civil penalties for breaches of safety or commercial regulations.

In Conclusion

In conclusion, the ongoing legislative efforts to expand the Federal Motor Carrier Safety Administration's (FMCSA) authority over cargo theft reflect a critical recognition of the challenges faced by the transportation and logistics industry. By strengthening regulations and enhancing enforcement capabilities, lawmakers aim to address the increasing prevalence of cargo theft, which not only impacts the financial stability of businesses but also undermines the safety of our supply chains. As these legislative discussions progress, it is essential for stakeholders to engage collaboratively, ensuring that any new measures effectively balance the need for security with the operational realities faced by carriers and shippers. Ultimately, a comprehensive approach will be necessary to safeguard the interests of all parties involved while fostering a more secure environment for cargo transportation.

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