The Hidden Cost of Cargo Theft: How Underreporting Weakens Supply Chain Resilience

The Hidden Data Gaps Undermining Supply Chain Resilience 

Cargo theft has long been treated as an unavoidable cost of doing business in logistics. Yet new data shows the issue runs deeper than most realize. According to the American Transportation Research Institute (ATRI), a majority of theft incidents are never reported. 

For many operators, the logic seems straightforward: w

hen a theft is valued below $50,000, which is often less than the insurance deductible, it appears easier to absorb the loss than risk higher premiums. But the hidden cost of that decision extends far beyond the immediate financial hit. 

The True Cost of Silence 

Each unreported theft is not just a missing pallet, but a missing data point as well. When these incidents go undocumented, valuable intelligence about routes, timing, methods, and vulnerabilities disappears. The industry loses visibility into patterns that could prevent future losses and improve supply chain resilience  

Underreporting also distorts the perception of risk. Law enforcement, insurers, and logistics networks depend on accurate data to allocate resources and model threats. When thefts are quietly absorbed, those models break down and the cycle repeats. 

Ultimately, silence doesn’t just cost companies money; it weakens the entire supply chain ecosystem. 

How Technology Strengthens Supply Chain Resilience 

In modern logistics, visibility and verification are the foundation of resilience. Knowing where shipments are is no longer enough. Stakeholders must be able to prove that cargo remained intact and compliant at every stage. 

This is where data becomes a form of protection. Verified records including departure times, seal integrity, handler information, and checkpoint validation, provide the traceability needed to resolve claims quickly, detect emerging risks, and negotiate better insurance terms. 

Companies that invest in technology-driven verification can move from reactive loss response to proactive risk management, reducing the likelihood and impact of theft. 

Building Supply Chain Confidence Through Automation  

At Technova, we’ve seen how automation can close the visibility gaps that make theft and underreporting possible. 

Our Nova Control platform automates checkpoint verification while capturing seal integrity, timestamps, and driver details to create a secure digital chain of custody across logistics networks. 

By turning visibility into verifiable data, Nova Control enables companies to detect risks early, reduce disputes, accelerate investigations, and strengthen accountability. Overall, empowering them to report incidents confidently without fear of higher premiums, supported by improved risk profiles and data-backed trust.