WASHINGTON — The freight industry is backing the Combating Organized Retail Crime Act to fight the rising incidents of supply chain crimes.
The bipartisan, bicameral legislation seeks to establish a unified, federal response to the proliferation of cargo theft perpetrated by criminals who often operate across state and international borders.
“The trucking industry takes great pride in delivering America’s freight safely and on time; however, the billions of tons of goods transported by trucks from coast to coast have increasingly become a prime target for organized crime rings, including transnational organizations, putting truck drivers at risk and raising costs for consumers,” said Chris Spear, American Trucking Associations (ATA) president, CEO. “ATA commends this bipartisan group of leaders for addressing this alarming trend and safeguarding our supply chain. By empowering federal agencies to improve cooperation across jurisdictions and ramp up enforcement actions, this bill would strike an effective blow against organized crime.”
Supply Chain Crimes Cost $35B Annually
Thieves targeting freight shipments are costing the supply chain up to $35 billion annually and fueling price inflation for consumers, according to the ATA. Strategic theft has risen 1,500% since the first quarter of 2021, and the average value per theft is over $200,000. Cargo theft comes in many forms and causes significant financial losses and operational disruptions, whether it involves imitating a legitimate company, pilfering goods over time, breaking into a parked tractor-trailer, double-brokering fraud, or holding freight hostage. Increasingly, thieves are employing sophisticated cyber methods to steal product.
Intermodal Association of North America (IANA)
According to IANA, the legislation offers a coordinated, multi-agency response to rising cargo theft and fraud incidents by creating new tools for the federal investigation and prosecution of organized crime. Among other provisions, CORCA establishes an Organized Retail and Supply Chain Crime Coordination Center within the Department of Homeland Security to align efforts between law enforcement agencies and private entities to share information, identify trends, and track and deter organized crime.
“Organized cargo theft and fraud disrupt intermodal freight supply chains, risk the safety of our workforce, and harm the U.S. economy,” said Anne Reinke, IANA president, CEO. “The Intermodal Association of North America (IANA) applauds Senator Grassley (R-IA), Senator Cortez Masto (D-NV), and Reps. Joyce (R-OH), Lee (D-NV), Valadao (R-CA), Titus (D-NV), Baumgartner (R-WA), Schneider (D-IL), Lee (R-FL), and Correa (D-CA) for their leadership in championing critical legislation to address this urgent threat. The bipartisan Combating Organized Retail Crime Act will provide important resources to detect and fight organized crime throughout the supply chain, ensuring that our industry can continue delivering goods to American consumers safely and efficiently.”
IANA distributed a letter of support to the original sponsors of the Combating Organized Retail Crime Act, which can be found here. In February, the Association submitted written testimony on this issue to the Senate Committee on Commerce, Science, & Transportation, available here.
Complex Crime
According to the ATA, due to the complex nature of cargo theft, only the federal government has the authority, resources, and technical abilities to mount an effective defense. The Combating Organized Retail Crime Act would enhance legal frameworks; improve enforcement capabilities; and foster coordination among federal, state, and local agencies.
The bill was introduced in the Senate by Judiciary Committee Chairman Chuck Grassley (R-Iowa) and Sens. Catherine Cortez Masto (D-Nevada), Marsha Blackburn (R-Tennessee), Amy Klobuchar (D-Minnesota), James Risch (R-Idaho), Jacky Rosen (D-Nevada), Bill Cassidy (R-Louisiana), Martin Heinrich (D-New Mexico), Ted Budd (R-North Carolina), Bill Hagerty (R-Tennessee), Lindsey Graham (R-South Carolina), and Steve Daines (R-Montana).
Companion legislation was introduced in the House by Reps. David Joyce (R-Ohio), Susie Lee (D-Nevada), David Valadao (R-California), Dina Titus (D-Nevada), Michael Baumgartner (R-Washington), Brad Schneider (D-Illinois), Laurel Lee (R-Florida), Lou Correa (D-California), Brad Knott (R-North Carolina), Joe Neguse (D-Colorado), Nick LaLota (R-New York), Joe Morelle (D-New York), Mark Amodei (R-Nevada), Salud Carbajal (D-California), Juan Ciscomani (R-Arizona), Henry Cuellar (D-Texas), Troy Nehls (R-Texas), and Jim Costa (D-California).
Dana Guthrie is an award-winning journalist who has been featured in multiple newspapers, books and magazines across the globe. She is currently based in the Atlanta, Georgia, area.
