Why insurers may see cargo theft rise in 2025

Cargo theft declined 30% last year, largely because thieves saw more opportunity in stealing cars, says a new report by Équité Association.

But as governments start to clamp down on car theft, Canada’s P&C insurers expect the thieves may go back to stealing trucks and their cargo.

“In 2022, truck, trailer and cargo load theft reached its highest point within the five-year period of this report, with an unrecovered theft value of $134.8 million,” says Équité Association’s report, Cargo & Heavy Equipment Theft Trend Report (2019-2023), released today.

“In 2023, there was a 30% decrease of thefts in these categories, likely due to the successful efforts of dedicated cargo theft units embedded in Ontario law enforcement agencies, and because thieves have focused more on auto theft in 2023.

“As more resources are dedicated to combat the auto theft crisis in 2024, it is projected that thieves will return to truck, trailer and cargo load thefts in 2025.”

Cargo theft reached an all-time high in 2022, with an unrecovered theft value of $134.8 million.

Over the last five years, thefts of trucks, trailers and cargo loads have totaled more than $531 million in value, the report states. Of this, more than $239 million remains unrecovered. On average, the value of a recovered cargo load is $114,000.

Fifty-three million dollars’ worth of the unrecovered cargo load comes from the Top 3 categories by value:

• Mixed loads. For example, goods destined for large retailers that sell a variety of goods in their stores (29.3%)
• Electronics (11.18%)
• Groceries (9.18%)

Also in the news: How P&C industry wages compare to other industries

Also, the rise in construction across Canada is driving up the value of heavy machinery, the report notes.

“Heavy equipment thefts increased in 2023 due to the supply and demand of machinery,” says the report. “Increased construction work after the COVID-19 crisis resulted in machinery shortages in certain areas. Thieves capitalized on the need for heavy equipment, which caused a rise in thefts to support the demand.”

Between 2019 and 2023, thieves stole more than $124.6 million in heavy equipment. Almost 24% of these machines were recovered, on average. The Top 3 theft hot spots were Edmonton, Calgary and Toronto.

“The most common piece of heavy equipment stolen is the skid steer and the mini excavator,” the reports says. “Both are small and easily loaded onto a trailer and gone in a few minutes.

“Machinery is often stolen from job site/construction sites, as they are usually isolated during the night. Heavy equipment doesn’t travel on roadways like tractors and trailers, but are often used in large construction areas and farms making them harder to recover by not being in the view of the general public or law enforcement.”

 

Feature image courtesy of iStock.com/CHUYN