The trucking industry is facing an unprecedented crisis as cargo theft has skyrocketed by 1,500% since 2021, costing the supply chain an estimated $35 billion annually. The rising wave of organized theft has not only placed immense financial strain on businesses but has also contributed to increasing consumer prices.
Adam Blanchard, owner of Double Diamond Transport and a member of the American Trucking Associations, testified before a Senate Commerce Subcommittee today, sharing firsthand accounts of how sophisticated criminals have infiltrated the industry.
A Personal Battle Against Organized Crime
Blanchard, who founded Double Diamond Transport and its brokerage arm, Tanager Logistics, in 2014 with just one truck, has expanded his business to a fleet of 90 trucks. His company has created dozens of jobs and earned recognition as one of San Antonio’s fastest-growing private enterprises. However, the success he built over the past decade has been threatened by cargo thieves who have used identity scams to impersonate his business and divert shipments.
“Like most small business owners, we faced daily challenges, yet we were blessed with an exceptional team,” Blanchard stated. “About a year ago, our American Dream turned into a nightmare when some unscrupulous criminals stole our identity. By capitalizing on our good name, they tarnished the sterling reputation we had spent a decade to earn.”
How Criminals Operate
Cargo theft takes multiple forms—ranging from breaking into parked trailers to sophisticated fraud schemes involving identity theft. Blanchard detailed how criminals created a fake Tanager Logistics, even managing to list their fraudulent company on the Federal Motor Carrier Safety Administration’s (FMCSA) SAFER website. By doing so, they successfully brokered loads to unsuspecting carriers. One such shipment, valued at over six figures, was rerouted over 1,000 miles from its intended destination.
Blanchard’s real company was left to manage the fallout. “We played whack-a-mole and suffered reputational damage while the scammers pocketed the money,” he said. Despite his repeated efforts to notify FMCSA and law enforcement, his pleas for intervention were largely ignored. “We sought to report these crimes but kept hitting dead ends with federal, state, and local law enforcement, federal regulators, and insurance companies. The message was clear: you are on your own.”
Calls for Government Action
Due to the multi-jurisdictional nature of these crimes, Blanchard emphasized that only the federal government has the capacity to dismantle organized theft rings. He urged Congress to take immediate action by:
- Directing FMCSA to remove fraudulent carriers from its official website.
- Passing the Safeguarding Our Supply Chains Act, which would establish a federal task force dedicated to combating cargo theft.
- Enacting the Household Goods Shipping Consumer Protection Act, strengthening penalties against fraudulent operators and enhancing consumer protections.
“Currently, criminals view trucking as a low-risk, high-reward target. We must invert that calculus,” Blanchard stated. “Trucking is a tough business, and we have no shortage of grit and determination. But our industry is simply not equipped to deal with organized theft groups on our own. Congress must provide agency guidance and resources to combat criminals who are exploiting small businesses that families spent years, decades, or even generations to build.”
A Growing Threat That Demands Action
With cargo theft incidents on the rise, industry leaders warn that failure to act could further destabilize an already strained supply chain. Blanchard’s testimony serves as a wake-up call, urging lawmakers to take decisive steps to protect businesses, safeguard consumers, and restore trust in the transportation industry.
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