Freight fraud is a growing problem in the trucking industry, costing companies millions of dollars each year. Fortunately, lawmakers in the US have taken notice and introduced a bill to combat this issue. Whitewater Freight, a third-party logistics company that operates in the US and Canada, is here to break down what this bill means for the industry and how it can help prevent freight fraud.
What is Freight Fraud?
Freight fraud, also known as cargo theft, occurs when a shipment is stolen or lost during transportation. This can happen in various ways, such as through deceptive practices, falsified documents, or even through the hacking of electronic systems. According to the FBI, cargo theft costs the trucking industry an estimated $15-30 billion each year. It not only affects the trucking companies involved, but also the businesses relying on their services to transport goods.
The Trucking Industry’s Response
To combat freight fraud, the trucking industry has been implementing various measures and technologies in recent years. This includes tamper-proof seals, tracking devices, and video surveillance. However, the industry still needs federal intervention to better protect companies from this growing threat.
The Introduction of the Bill
In January 2021, US House lawmakers introduced the “Blocking, Tracking, and Alerting Networks for Truckers (BLAST) Act,” which aims to tackle freight fraud by creating a national registry for tracking stolen goods. The bill’s main goal is to set up a system for trucking companies to report stolen cargo, allowing law enforcement agencies to track and locate the stolen items quickly.
The Features of the BLAST Act
The BLAST Act has several essential features that aim to combat freight fraud and protect the industry. Some of these include:
1. A Database for Reporting Cargo Theft
The bill requires the development of a national registry that compiles information about freight theft incidents reported by trucking companies. This will serve as a centralized database for law enforcement agencies to share information and track stolen goods.
2. Required Tracking Devices
Under the BLAST Act, all trucks must be equipped with a tracking device to monitor the location of the vehicle and cargo. This will enable the tracking of stolen goods and aid in the recovery process.
3. Specialized Training for Law Enforcement
The BLAST Act also provides funding for law enforcement agencies to receive specialized training in identifying and responding to freight theft. This will help officials to be more knowledgeable and equipped to handle such cases effectively.
4. Collaboration between Government Agencies
The bill also emphasizes collaboration between different government agencies, including the Department of Transportation, Department of Homeland Security, and the Federal Bureau of Investigation, to create a comprehensive approach to combatting freight fraud.
The Benefits of the BLAST Act for Trucking Companies
The BLAST Act is a much-needed step towards protecting the trucking industry from freight fraud. For trucking companies, the bill offers several benefits, including:
1. Improved Recovery of Stolen Goods
With a centralized database and tracking devices on all trucks, it will be easier to locate stolen goods and increase the chances of successful recovery.
2. Reduced Financial Loss
Freight fraud can result in significant financial losses for trucking companies. The BLAST Act aims to minimize these losses by streamlining the process of reporting stolen goods and tracking them down.
3. Enhanced Security Measures
By implementing tracking devices and requiring specialized training for law enforcement, the BLAST Act will improve overall security measures in the industry. This will not only help prevent freight fraud but also deter potential thieves.
4. More Efficient Collaboration
With the collaboration between different government agencies, the process of identifying, tracking, and recovering stolen goods will be more streamlined and effective.
Conclusion:
Freight fraud is a serious issue that has been affecting the trucking industry for far too long. The introduction of the BLAST Act is a significant step towards combating this problem and protecting the industry as a whole. At Whitewater Freight, we fully support this bill and look forward to its implementation. As a third-party logistics company, we are committed to providing safe and secure transportation services for all our clients across the US and Canada. Contact us today to learn more about how we can help with your freight transportation needs.
