In January 2024, Sterling, VA-based Potomac Metals shipped a load of copper chop, worth about $160,000, to Pennsylvania. Typically, this would be a one-day shipment but after several days the company realized that the delivery never reached its destination.
“Our broker tried contacting the driver and we quickly found out the number was no longer in service,” said Sarah Zwilsky, Vice President at Potomac Metals. “Our last communication with the driver was sending us a bill of lading (BOL) and the delivery address had a California address. In our industry, if you’re on the east coast making this product there’s no need to go out to the west coast, you’d just lose money shipping it that far.”
Potomac Metals isn’t an outlier; according to Overhaul’s United States & Canada H1 2024 Cargo Theft 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.
These thefts are known as “strategic thefts.” They typically involve planned acts of stealing that often use deception to gain access to targeted items. While “opportunity thefts” are crimes committed when the situation presents itself and are often spontaneous.
“All industries are seeing a rise in strategic thefts,” said Todd Foreman, ReMA’s Senior Director of Law Enforcement Outreach. “There are several reasons why. It could because of the high value of the property, or that technology has gotten better, or that criminals have found that the risks are relatively low compared to the reward.”
According to Aaron Plitt, Senior Vice President of Pittsburgh, PA-based AMG Resources, it’s important to raise awareness of this issue within the recycled materials industry. For the past 20 to 30 years, the industry has been operating with a great deal of trust in the trucking industry, but recently bad actors have started to exploit that trust.
“The recycled materials industry is the perfect target for this type of crime because of the value of the material, the metals are typically can’t be identified or traced to the origin, and the material is readily marketable domestically and internationally,” he said. “High value metals, such a copper fit all these criteria, but we have heard reports of lower value metals such as 304 Stainless also being stolen.”
According to Zwilsky, when the truck showed up to Potomac Metals, her team wasn’t taking any IDs at the time because of the COVID-19 pandemic.
“Before the pandemic, we asked for a lot of information. But put a pause on it to keep interactions at a minimum. Unfortunately, the driver had provided the correct delivery number and that was all we asked for, we didn’t ask where the driver was going, or for an ID.”
Potomac Metals realized the load had been stolen when the company’s broker tried reaching out to the driver and discovered the phone number was no longer in service. When Zwilsky called the police, she was told that once a shipment crosses state lines there is little that law enforcement can do to recover the stolen load.
“We’ve made a lot of changes after that experience to improve security,” Zwilsky said. “Now drivers must confirm delivery address, and our team members always take IDs and all the information off the truck including the tag, truck number, and truck ID. If something doesn’t look right, like the truck has a sticker over the company’s name, we won’t load the truck whatsoever.”
These increased security measures have already helped Potomac Metals. In July 2024, the company had six trucks show up, all with the same delivery number trying to get a load of #2 copper. The delivery address that the team received seemed suspicious, so they called the local police and didn’t load the cargo.
“The drivers left before the police arrived, but we know that we’re making positive changes,” Zwilsky said. “We’re using trackers on our trucks and receive alerts when the doors open, so if the doors open before it gets to the recipient, all of ownership receive an email alert and we can decide to call the broker or trucker; that’s really helped us.”
According to Foreman, ReMA members should following ReMA’s “Prevention of Cargo Theft Toolkit,” a document that provides actionable insights and strategies to safeguard recyclers’ shipments. The goal is to help members bolster their security and ensure that cargo is delivered to the assigned destination in a timely and secure manner.
Two key aspects for cargo theft prevention are:
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.
- Broker 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.
- If the rate is too good to be true—it probably is!
“To help mitigate these thefts, use brokers that you know and trust, require Contingent Cargo Insurance, and try to use carriers who own their own equipment for high-value loads,” Plitt said. “If a theft occurs in your yard, your initial reaction might be to hide it and say nothing, but it’s very important to speak up and raise awareness of this problem to prevent from happening to yourself and other int eh industry in the future.”
Foreman adds that law enforcement recommends that recyclers ask drivers to remove hats and/or glasses to take their photo. Recyclers should also ask drivers to call so they have the number while the driver is still on site and will know whether they are being provided with a real or fake number.
“As these thefts increase within the recycled materials industry, ReMA continues to work with other organizations and law enforcement to enhance prevention methods,” Foreman said. “Sometimes it can be as simple as contacting law enforcement when a truck is ready to load but something doesn’t feel right.”
In January 2024, Sterling, VA-based Potomac Metals shipped a load of copper chop, worth about...