The new realities of load theft

The truck arrives on time. The paperwork appears legitimate. The driver knows which shipment to collect. The truck number matches the dispatch information, and the load leaves the yard without raising suspicion. Hours later, the customer calls. The shipment never arrived.

For recyclers today, load theft often begins with convincing fraud. Criminals are posing as legitimate carriers, using falsified insurance certificates and dispatch information to collect high-value loads before disappearing without a trace.

According to Ryan Burns, Practice Leader with Cowan Insurance Group, organized cargo fraud is reshaping load theft risks for recyclers. Rising commodity values and evolving schemes are creating new challenges for recyclers moving high-value shipments.

Protecting outbound loads requires more than securing the yard. Load theft prevention requires strong internal procedures, thorough verification, and consistent communication from the moment a shipment is scheduled until it reaches its destination.

How load theft exploits the shipping process

For decades, recyclers have focused much of their security efforts on preventing theft from within the yard. Fencing, controlled access, lighting, and surveillance all remain important, but Burns says many of today's losses occur after a shipment has been authorized to leave.

Rather than forcing their way into a facility, organized criminal groups are finding ways to enter the shipping process before a truck ever reaches the yard.

"Load theft is probably the fastest-growing risk right now for recyclers," says Burns. "The schemes are becoming more sophisticated. The carriers, they're showing up . . . with fake certificates of insurance. There's fake dispatch that's being set up. There's load diversion tactics."

When the truck arrives, nothing appears unusual, and the shipment is loaded and released. Only later does the recycler, the legitimate carrier, or the customer discover that the assigned truck never arrived. Because the transaction appears legitimate until after the shipment has left the yard, these incidents can be difficult to detect before it's too late. For Burns, that shift changes how recyclers need to think about security.

Why scrap metal is an attractive target

Metal has always been valuable, but several factors make recycled commodities particularly attractive to thieves.

First, values have climbed significantly.

"Copper last year around this time was trading at three dollars, four dollars a pound, and now it's over seven," says Burns. A single outbound load of non-ferrous material can represent hundreds of thousands of dollars in value.

Second, scrap is inherently difficult to trace. Unlike finished products, recycled metals don't carry serial numbers or unique identifiers. Once a shipment changes hands, is combined with other material, or is exported, recovering it becomes extremely difficult.

"You can buy it in Calgary and go and sell it in Halifax, and it's very, very hard to trace," Burns explains.

Finally, every shipment passes through multiple hand-offs. Material moves from recycler to carrier, from carrier to processor, and sometimes through freight brokers or transfer facilities along the way. Each transition presents another opportunity for fraud if proper controls are not in place. For Burns, those realities make outbound shipments one of the industry's most vulnerable points.

Standardize shipping procedures to prevent load theft

According to Burns, one of the most effective ways to reduce load theft has little to do with technology or physical security. It starts with establishing consistent procedures that every employee follows, every time.

In many recycling operations, shipping procedures are set in stone. Veteran dispatchers and scale operators know their regular carriers, recognize familiar drivers, and can often spot something that doesn't seem right. But Burns says relying on individual experience leaves gaps, particularly as companies grow, staff change, or new employees take on shipping responsibilities. Instead, verification should be built into the process itself.

Documented procedures create consistency. They ensure that every shipment is handled the same way regardless of who is working that day, reducing the likelihood that an unusual request or convincing story will bypass normal safeguards.

Burns also encourages recyclers to regularly review those procedures with employees. Criminal tactics continue to evolve, and staff who understand what to watch for are more likely to recognize suspicious situations before a load leaves the yard. One way to improve security is by creating a process that verifies every shipment the same way.

Carrier verification is key to preventing load theft

Even when an employee is dealing with a carrier that has hauled loads for years, Burns believes every outbound shipment deserves the same level of scrutiny.

"Weak carrier verification by the staff — that's the biggest one," he says. "They're not vetting your load brokers or the people who are picking up the materials. They're not verifying the certificates of insurance."

Before releasing a shipment, Burns advises confirming several key pieces of information:

• Carrier: Confirm the trucking company assigned to the load and independently verify that it is the company expected to perform the pickup.
• Driver: Verify the driver's identity using government-issued identification and confirm they are authorized to collect the shipment.
• Truck: Ensure the truck and trailer match the information provided during dispatch.
• Destination: Confirm where the material is being delivered and that the destination matches shipping documents.
• Purchase order and bill of lading: Review documentation for inconsistencies or unexpected changes before loading begins.
• Scale ticket: Ensure weights and shipment details accurately reflect the material being released.

Rather than relying solely on documents handed over by the driver, Burns recommends independently confirming information whenever possible. A quick phone call to the freight broker or carrier can help verify that the correct truck has been dispatched and that no last-minute changes have been made without authorization.

Those extra steps may add only a few minutes to the shipping process, but they can prevent a loss that could take months or prove impossible to recover.

How pickup changes can increase load theft risk

A last-minute change doesn't necessarily mean a shipment is being targeted. Trucks break down. Drivers become unavailable. Dispatch schedules shift. Individually, these situations may have legitimate explanations. Together, they represent some of the most common opportunities for fraud. Burns says unexpected changes should never be treated as routine.

Instead of allowing staff to make judgment calls on the spot, Burns recommends establishing a clear protocol for handling any deviation from the original shipping plan.

"Whenever there's a change in the pickup of the load . . . it should automatically require management sign-off," he says.

That approval process creates a natural pause and an opportunity to verify new information before the shipment leaves the yard. A quick phone call to the carrier or freight broker can often confirm whether the change is legitimate or reveal that something isn't right.

Just as importantly, Burns says, employees should feel empowered to question unusual requests. If something seems inconsistent with the original shipping instructions, staff should know they have both the authority and the responsibility to stop the process until the details have been verified. In many cases, the few minutes spent confirming a change can prevent a costly mistake.

Use surveillance to strengthen load security

Strong shipping procedures work best when they're supported by good physical security and accurate recordkeeping.

Surveillance cameras, well-lit loading areas, controlled yard access, and restricted storage for high-value non-ferrous materials all remain important deterrents. While these measures may not prevent every fraudulent pickup, they can provide valuable evidence if an investigation becomes necessary.

Documentation is equally important. Burns recommends maintaining complete records for every outbound shipment, including bills of lading, purchase orders, scale tickets, photographs when appropriate, and records identifying the driver, truck, trailer, and carrier involved in the pickup. Together, these documents establish a clear chain of custody and can help investigators reconstruct exactly what happened if a shipment goes missing.

Accurate inventory reconciliation also plays an important role. The sooner a discrepancy is identified, the sooner a recycler can begin contacting customers, carriers, law enforcement, and insurers. Waiting until the next inventory count or monthly reconciliation may allow valuable time to slip away.

Ultimately, Burns says, no single security measure is enough on its own. Physical security, documentation, and verification procedures all work together to reduce opportunities for theft and improve the chances of recovering a shipment if something does go wrong.

Make sure high-value loads are properly insured

Even the strongest security procedures cannot eliminate every risk. When a shipment is stolen, having the right insurance coverage and understanding how that coverage works can make a significant difference.

One area Burns says recyclers often overlook is the declared value of a shipment. Many companies rely on standard bills of lading without realizing they may limit a carrier's liability to an amount far below the actual value of the cargo. As commodity prices rise, particularly for materials such as copper, that gap can become substantial.

"If you're shipping copper that's worth seven or eight dollars a pound and your bill of lading only limits recovery to a couple of dollars a pound, you're going to have a significant uninsured loss," Burns explains.

Burns encourages recyclers to review their transportation agreements and cargo insurance with their broker before a loss occurs, not afterward. Understanding who is responsible for a shipment at each stage of transportation, what documentation is required, and whether declared values are appropriate can help you avoid costly surprises during a claim.

According to Burns, insurance should be viewed as one component of a broader risk management strategy rather than the primary defence against theft.

Have a load theft response plan

When a shipment goes missing, time becomes the most valuable resource.

The first priority is confirming that the load has actually been stolen rather than delayed because of a legitimate transportation issue. Once that possibility has been ruled out, Burns says recyclers should act immediately. First steps include:

• Contact local law enforcement.
• Notify the insurance broker or insurer.
• Inform the customer or intended receiver.
• Alert employees, owners, and other key people within the operation.
• Preserve surveillance footage and all records related to the shipment.
• Secure bills of lading, scale tickets, driver information, emails, text messages, photographs of the load, and any available GPS data.
• Notify CARI or ReMA, where appropriate, so information about the stolen load can be shared with the industry.

Burns says delays can significantly reduce the likelihood of recovering stolen material.

"The first couple of hours are critical," he explains. "Once that material starts moving, it becomes much more difficult to locate."

Having an incident response plan in place before a theft occurs can help employees respond quickly and ensure important steps are not overlooked during a stressful situation.

Build load theft prevention into your recycling operation

As load theft continues to evolve, Burns believes recyclers must evolve with it.

While criminals continue to develop more sophisticated methods of impersonating carriers and diverting shipments, many of the industry's most effective defences remain surprisingly straightforward: know who is collecting the load, verify every shipment, and follow documented procedures every time.

Technology, surveillance, and insurance all have important roles to play, but they cannot replace disciplined operational processes.

Burns suggests that protecting high-value shipments ultimately comes down to three principles: verify the people handling your material, understand how your insurance coverage will respond if something goes wrong, and have a documented plan for preventing and responding to a theft.

Although it may be impossible to prevent theft altogether, the goal should be making your recycling business much harder to target.

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This article originally appeared in the September/October 2026 issue of Recycling Product News.