Washington — Today, with the strong support of the American Trucking Associations, Congressman David Valadao (R-CA) introduced the Safeguarding Our Supply Chains Act. The legislation would address one of ATA’s strategic priorities by establishing a Supply Chain Fraud and Theft Task Force, helping to counter the sharp rise in cargo theft and broader supply chain fraud.
“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, putting truck drivers at risk and raising costs for consumers,” said American Trucking Associations Senior Vice President of Legislative Affairs, Henry Hanscom. “ATA commends Congressman Valadao for introducing legislation to address this alarming trend and safeguard our supply chain. The Supply Chain Fraud and Theft Task Force created by this bill would strengthen the partnership between motor carriers, law enforcement, the government, and other supply chain partners to strike an effective blow against organized crime.”
Earlier this month, Congressman Valadao secured and ATA supported an anti-cargo theft provision in the fiscal year 2025 Department of Homeland Security funding bill, which directed $2 million toward the establishment of the Supply Chain Fraud and Theft Task Force. The Safeguarding Our Supply Chains Act would complement that effort by:
- Directing Homeland Security Investigations (HSI) to work in conjunction with the Federal Bureau of Investigation (FBI) and U.S. Attorney General to establish the Supply Chain Fraud and Theft Task Force.
- Establishing the purpose of the Task Force: “to address supply chain fraud and theft throughout the rail, motor carrier, and intermodal systems, as well as detect, disrupt, and deter organized theft groups that are targeting all stages of the supply chain.”
- Establishing the Supply Chain Crime Coordination Center through HSI’s Innovation Lab to collect and analyze data related to supply chain fraud and theft and to identify regions in the United States, modes of transportation, distribution networks, and retail stores that are experiencing high volumes of organized crime.
- Establishing that the Task Force must “ensure a coordinated, multi-agency, intelligence-based, and prosecutor-led approach to identifying, disrupting, and dismantling organizations responsible for the organized theft, fraud, and theft-related violence in the United States supply chain.”
- Authorizing $100 million to be appropriated for fiscal years 2025-2029.
Representatives Brad Schneider (D-IL), Darin LaHood (R-IL), Vince Fong (R-CA) August Pfluger (R-TX) and Jim Costa (D-CA) joined Representative Valadao in introducing the bill.
According to CargoNet, cargo theft spiked by 57 percent in 2023 compared to the prior year. Thefts have continued at a torrid pace this year, increasing another 10 percent in the first three months of 2024. In Q1, there were 925 documented incidents of cargo theft with an average loss of $281,757 per stolen shipment. California, Texas, and Illinois had the highest incidents of cargo theft, accounting for 61% of all cases. Motor carriers are not required to report these robberies, so actual cases are likely much higher.
Cargo theft not only disrupts the supply chain for American consumers, but it also endangers the lives of truck drivers and law enforcement. In light of this troubling trajectory, ATA added security—including cargo theft and cyber threats—to its list of strategic priorities earlier this year.