ATA Supports Law to Combat Cargo Fraud: Key Insights

SAFER Transport Act: A Step towards Reducing Fraud in the Trucking Industry

In Washington today, Senator Todd Young (R-IN) received praises from the American Trucking Associations (ATA) for proposing a piece of legislation aimed to bolster regulatory supervision, curb illegal activities, and reinforce enforcement in the commercial motor carrier sector. This move is part of an ongoing effort to tackle freight fraud and theft, issues that are increasingly affecting the industry.

The introduction of the Securing American Freight, Enforcement, and Reliability in Transport (SAFER Transport) Act is a clear response to the rising incidents of cargo theft, a topic previously discussed in a Senate Commerce Subcommittee hearing chaired by Senator Young. During the hearing, a small trucking business owner testified on behalf of ATA, illustrating how his company’s identity was stolen and misused by tech-savvy criminals to divert and steal cargo loads.

Impact of Freight Fraud on Small Businesses

“More than 90% of trucking fleets operate with 10 trucks or fewer, and each of these businesses embodies the American Dream. However, they are now facing sophisticated criminals who exploit loopholes in the USDOT’s registration process to steal their identities and commit cargo theft,” stated Chris Spear, the President & CEO of the American Trucking Associations. Small businesses often struggle to combat large-scale fraud independently, necessitating the implementation of Senator Young’s proposed reforms to modernize USDOT’s systems, weed out fraudulent carriers, and enhance oversight and penalties. “We are grateful for Senator Young’s willingness to listen to the voices of hardworking truckers,” added Spear.

Cargo Theft: A Rising Threat to the Trucking Industry

Insufficient oversight has allowed criminal activities to proliferate in the trucking sector. As a result, ATA has continuously advocated for stronger regulations to improve CDL integrity, enhance driver qualifications, shut down CDL mills, and eliminate cabotage. The SAFER Transport Act aligns with ATA’s recommendations by proposing to:

• Modernize and secure FMCSA’s registration system;
• Replace outdated MC numbers with USDOT numbers;
• Boost fraud detection and enforcement;
• Enhance CDL issuance and training provider oversight;
• Intensify penalties for fraudulent certifications;
• Improve interagency coordination on freight theft and cabotage enforcement; and
• Close regulatory gaps associated with foreign dispatch services.

Cargo theft is becoming increasingly sophisticated, often originating overseas. The American Transportation Research Institute estimated that cargo theft costs the trucking industry over $18 million per day. Strategic theft, involving cyber fraud and identity manipulation, has reportedly surged by 1,500% since 2021 according to CargoNet.

The proposed SAFER Transport Act gives hope to the trucking industry by fortifying the integrity of the FMCSA’s registration system and implementing additional measures to eliminate fraud.