Confirmed cargo theft incidents increased by 18% in 2025, according to Versik CargoNet’s Supply Chain Risk report. The average theft value also rose to hit $273,990. In total, Verisk’s report estimates that US and Canadian freight companies lost $725 million to cargo theft in 2025.
Clearly, freight security is a major concern that must be addressed. Thankfully, the advancements in artificial intelligence technology are proving helpful in addressing most freight security challenges. Not only that, but AI and IoT technologies can also help deal with lawsuit abuse, another major challenge facing the trucking industry.
In this article, we’ll discuss four practical use cases of AI and IoT technologies to demonstrate how they can enhance freight security.
Modern IoT devices feature AI capabilities that give freight operators even better visibility over their fleets and cargo. While traditional tracking gadgets only focused on transmitting GPS locations, new devices have even more sensors capturing different data points. They collect data such as temperature, humidity, vibration, pressure and CO2 of cargoes. They can also monitor the routes drivers take.
The AI analyzes data from all these sensors and sends alerts to the operators and drivers when something is amiss. For example, they can detect route deviations and send an alert within seconds. They can also detect when doors are open outside delivery times. These can be instrumental in detecting potential cargo thefts.
Geofencing has also been very helpful in boosting freight security. Modern geofencing systems allow freight managers to create virtual boundaries. They also provide additional features like the ability to disable vehicles remotely. When the system detects that a vehicle is outside the set boundaries, freight security operators receive an alert immediately with the option to disable the truck.
Besides helping track valuable assets, tracking systems can provide valuable defense in the event of exaggerated claims from lawsuits. Modern tracking devices are very precise, and they provide rich data like acceleration curves, cornering angles and braking force.
Additionally, data on vibrations, temperature, light, and humidity can be useful when disputes over spoiled or damaged goods arise. That can save freight companies from fraudulent claims.
Deep learning is an incredible CCTV technology that allows cameras to analyze and understand what’s happening in video footage. For example, cameras with this technology can analyze faces and cross-reference them against a list of authorized personnel. You can already imagine how useful this technology can be in the freight industry.
Upgrading to modern AI-powered surveillance systems helps keep your warehouses, terminals, and trucks safer. The best part is that they can also be very cost-effective.
Instead of hiring guards to keep an eye on a warehouse perimeter, these cameras can do the 24/7 monitoring job and only send alerts when they detect abnormal behavior. Whether it's a person trying to scale a fence or an unauthorized vehicle entering your yard, the systems will make sure every suspicious activity is reported to your centralized security post.
Access control systems work alongside the cameras to secure freight facilities. RFID access control systems make sure that only verified individuals can access your facilities. And they log every activity with timestamps. This helps discourage insider theft.
Similarly, advanced dashcams can provide irrefutable evidence to protect carriers against fraudulent claims like staged collisions. Plus, most of these cameras also come with sentry mode. So when the truck is parked, but a bump occurs or the cabin is breached, the camera turns on automatically and starts recording.
Artificial intelligence is very good at analyzing massive amounts of data. This makes it super useful for route planning. Most retailers are already using the technology to reduce fuel consumption and avoid congestion when planning last-mile deliveries.
Freight operators can use the same technology to enhance efficiency and security. AI can analyze historical data on theft “hot spots” and suggest the best route with the lowest security risk.
In addition to human-related threats, AI-powered route planners can also analyze other dangers like bad weather. That helps optimize freight routes to protect both the cargo and the driver.
IoT and AI-powered telematics systems support real-time logging of driver activities. They capture data on speed, braking intensity, acceleration pattern, lane discipline, hours of service and even engine diagnostics and maintenance history.
That data can help identify risky driving patterns. It can even flag drivers that might be colluding with criminal networks. Not to mention that they can be used during litigation to demonstrate that a driver was operating the vehicle responsibly.
That said, it’s really important that freight operators invest in high-quality and secure telematics systems. Reports by the National Motor Freight Traffic Association show that hijackers can manipulate outdated or unsecured telematics systems to reroute shipments to dummy drop-off sites.
AI and IoT can be instrumental in combatting the freight security challenges fleet operators face in 2026. Advanced surveillance, predictive threat detection and real-time tracking of assets and logging of driver activities are some of the most compelling use cases.
Leaders must invest in AI and IoT technologies to protect modern freight operations.
Whether you're a company looking to improve one facet of your supply chain, your entire supply chain, or simply looking for a transportation and logistics consultation, we can help.
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