Michigan House Passes Bills to Crank Up Cargo Theft Penalties to 20 Years

Detroit and surrounding areas have become prime targets for organized cargo theft rings, with truckers losing millions annually to international criminal networks. Michigan lawmakers are responding with harsher penalties designed to combat what industry leaders say is an escalating public safety crisis.

House Representatives passed two companion bills on March 10, with the legislation now moving to the Senate Committee on Transportation and Infrastructure for consideration.

The bills, HB 5125 and HB 5126, would allow prosecutors to seek up to 10 additional years in prison for certain cargo theft convictions. If both bills pass the Senate, convicted offenders could face up to 20 years in total.

Criminal Networks Targeting Michigan Businesses

Rep. Mike Harris, R-Waterford, who sponsored HB 5125, told lawmakers that international criminal networks have identified Michigan as a prime target for cargo theft.

"This plan increases penalties for cargo theft so we can bring the full force of our justice system against anyone targeting Michigan businesses or consumers," Harris said.

The bill also makes amendments to allow prison terms to run consecutively for violations arising from the same crime, rather than concurrently. This means a 10-year enhancement would add to any existing sentence rather than being served at the same time.

HB 5126, introduced alongside the proposed legislation by Rep. Steve Frisbie, would amend the state's penal code to classify cargo theft as a Class D felony, with a maximum sentence of 10 years in prison.

Trucking Industry Backs Tougher Sentences

The Michigan Trucking Association and other industry groups have strongly supported the proposals. During a February 25 House Judiciary Committee hearing, MTA CEO Jill Sokacz testified on behalf of the bills.

Sokacz said that nationally, cargo theft losses are about $18 million a day, which equates to about $521,000 annually per trucking company. She noted that most Michigan carriers are small family-owned businesses that cannot absorb those costs day after day.

"Most Michigan carriers are small family-owned businesses. They are working hard to make a living, and they can't absorb that kind of cost day after day annually. Ultimately, it's passed on to the consumer," Sokacz said.

She shared examples of cargo thefts her company experienced, including a truck stolen with a load of pickles that was later recovered in Florida filled with bottled water. She sustained losses from spoiled cargo that was unsellable and an insurance deductible of $75,000 per incident.

"We had a driver that was parked for the night. Somebody got into the back of our trailer, cut open the seal and looked inside and decided flour wasn't worth stealing. Nobody would take it. It was compromised at that point, so it was $25,000 out of our pocket for a load of our flour," Kordish said.

Organized Crime, Not Random Theft

Rep. Harris emphasized that cargo theft is not a crime of opportunity. Breaking into rail cars or shipping containers to steal vehicles or high-value goods requires planning, coordination, and organized criminal support.

"Cargo theft isn't a crime of opportunity. Breaking into rail cars or shipping containers to steal vehicles or high-value goods requires planning, coordination and organized criminal support. Treating these crimes the same as ordinary theft fails to recognize their scale and complexity," Harris said.

According to a House Republicans statement, the state has experienced a boom in cargo theft from railcars and storage facilities linked specifically to criminal activity tied to international gangs, especially in Detroit and surrounding Wayne County.

What Happens Next

HB 5126 cannot take effect without the Legislature approving the other bill. The proposed bills would only take effect if both HB 5125 and HB 5126 pass the Senate. If passed by the Senate, both proposed bills would take effect 90 days after becoming law.

The bills passed the House by a vote of 87-20. They moved to the Senate and were referred March 17, and currently sit in the Senate Committee on Transportation and Infrastructure.

Federal Efforts Underway

As states look for ways to crack down on offenders, efforts are underway at the federal level to address growing concerns about cargo theft and freight fraud.

Introduced in February, the Securing American Freight, Enforcement, and Reliability in Transport Act, tabbed the SAFER Transport Act, aims to address ongoing issues negatively impacting U.S. freight and highways, improve roadway safety for Americans and protect national security. The bill would eliminate the use of Motor Carrier numbers, phase them out over a five-year period in favor of U.S. DOT numbers.

Another bill introduced in April 2025, the Combatting Organized Retail Crime Act, aims to reduce cargo crime by strengthening law enforcement's legal tools for pursuing and prosecuting cargo thieves. The bill mandates the creation of the Organized Retail and Supply Chain Crime Coordination Center within Homeland Security Investigations and the Department of Homeland Security.

The proposed legislation currently has 206 co-sponsors.