Author: Banyan Technology

Cargo theft has reached unprecedented levels in recent years, posing a substantial threat to supply chains. In 2024, North America experienced a 27% increase in cargo theft incidents, totaling 3,625 cases. The average value of stolen shipments rose to $202,364 per incident, culminating in an estimated total loss of $454.9 million. ​

Many companies operate under the misconception that carrier liability will fully cover losses due to theft or damage. However, carrier liability is often limited and may not reflect the full value of the cargo. For example, liability coverage provided by carriers typically ranges between $0.50 and $25 per pound, which can be significantly less than the actual value of high-value shipments. Additionally, carriers may invoke limitations for damages resulting from acts of God, shipper negligence or other exclusions, leaving companies vulnerable to substantial financial losses.

Meanwhile, Shippers and 3PLs are expected to deliver more freight faster and safer than ever before. But with rising theft, damaged cargo and legal exposure, simply booking a shipment isn’t enough. You need to be sure that what you’re moving is also protected. That’s where on-demand freight insurance comes in.