The True Cost of Cargo Theft: When Customer Trust is on the Line

This Thanksgiving, most people will see what arrives on their tables, not the drivers who make it possible. Amid rising cargo theft and growing pressure on supply chains, drivers continue to deliver the food, supplies, and essentials that keep holidays moving. At Geotab, we’re saying thank you to the drivers who keep shelves stocked and tables full, even when the risks are rising.

Cargo theft, a $15 billion to $35 billion problem for the U.S. economy, is often dismissed as a simple cost of doing business. But it's more than that: it directly affects your reputation. As food and beverages remain a top target for thieves, the true cost isn't just the lost load; it's the potential loss of a customer.

This is a critical vulnerability for logistics and transport businesses. Our new survey data reveals a major disconnect: fleets are absorbing massive risks, insurance isn't the safety net needed, and your customers' trust is paying the price.

The Pressure is Moving Up the Supply Chain

End-consumers are increasingly aware of the problem, and that scrutiny impacts their retail partners. Our recent survey of American consumers shows a sharp awareness:

• 37% say theft leads to higher prices.
• 30% believe they, the consumer, ultimately bear the cost.

Consumer awareness creates pressure on retailers, who in turn place higher demands for security, transparency, and reliability on their logistics partners. When an end-customer feels the pinch, the retailer ultimately feels the pressure.

The Real Stake: Your Reputation

When cargo is stolen, the immediate loss is just the beginning. For logistics businesses, there is also real damage to their reputation.

Our data from the commercial transport sector shows just how widespread this is:

• 34% of respondents report experiencing theft-related incidents in the last year.
• When asked about the most damaging impact beyond the value of the cargo, 18% said it was the loss of customer trust and potential business.

This is the true, uninsurable cost of theft. You can replace the cargo, but you can't easily replace a key account.

The Great Insurance Myth: Why 93% of Fleets Don't Rely on It

"But doesn't insurance cover all of this?"

That's the common assumption, but insurance may not be the safety net many believe it to be. When we asked businesses how they cover their losses, the answer was telling: only 7% of businesses in the United States rely on insurance.

This low number isn't surprising. According to the American Transportation Research Institute (ATRI), insurance is one of the fastest-growing operational costs for fleets. Businesses are often forced to absorb smaller theft losses to avoid making claims that can cause already high premiums to skyrocket.

This creates the opportunity for a massive financial and reputational gap.

From Reactive to Resilient: Strengthening the Supply Chain Together

This gap is where your reputation is most at risk. When losses are absorbed, they can strain your operations and your customer relationships.

It's time to move from reacting to theft to proactively preventing it. Building a more resilient supply chain isn't just about protecting cargo; it's about protecting customer trust. The first step is understanding the true cost of your risk. When businesses have a clear view of their vulnerabilities, they can move from reacting to theft to preventing it: protecting their drivers, their cargo, and their customer relationships.

Read our full release, "Geotab Survey: Fleet Concern Over Cargo Theft Rises as Consumers Connect Theft to Higher Prices," for more.