Michigan House Passes Tougher Penalties for Cargo Theft as Truckers Battle Organized Crime

Detroit and surrounding areas have become prime targets for international cargo theft rings, prompting Michigan lawmakers to move aggressively against the crime.

Two companion bills passed the Michigan House of Representatives on March 10, establishing enhanced criminal penalties that could send cargo thieves behind bars for up to 10 additional years.

House Bills 5125 and 5126 cleared the chamber by an 87-20 vote and were referred to the Senate March 17. They now sit in the Senate Committee on Transportation and Infrastructure awaiting consideration.

Organized Crime Targeting Michigan

Rep. Mike Harris, R-Waterford, introduced HB5125, which would amend the state penal code to allow prosecutors to seek consecutive prison sentences for larceny involving stolen cargo.

International criminal networks have identified Michigan as a prime target for cargo theft, and law enforcement needs stronger tools to fight back.

The bill would let prosecutors add up to 10 years to any prison term given for violations arising from the same judicial transaction.

HB5126, sponsored by Rep. Steve Frisbie, R-Battle Creek, would classify cargo theft as a Class D property felony with a maximum 10-year prison sentence. The bill cannot take effect without the Legislature approving HB5125.

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, Harris said.

Treating these crimes the same as ordinary theft fails to recognize their scale and complexity.

Truckers Hit Hard

The Michigan Trucking Association and industry leaders testified in favor of the proposals during a February 25 House Judiciary Committee hearing.

Michigan Trucking Association CEO Jill Sokacz told lawmakers that nationally, cargo theft losses are about $18 million a day, which equates to approximately $521,000 annually per trucking company.

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.

Ralph Moyle Inc. board member Ashley Kordish, a third-generation leader of her family-owned company that runs 60 trucks, described how thieves decided her loads of flour and meat weren't worth stealing, but the $75,000 insurance deductible and spoiled cargo still cost her $25,000 per incident.

As part of the trucking industry, we are part of an industry that is struggling. We are historically not a high-value target, Kordish said.

Detroit Area Hotspot

HB5125 particularly targets criminal activity in Detroit and surrounding Wayne County, where the state has experienced a boom in cargo theft from railcars and storage facilities linked specifically to criminal activity tied to international gangs.

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

Cargo theft isn't a crime of opportunity, Harris said. Breaking into railcars or shipping containers to steal vehicles or high-value goods requires planning, coordination and organized criminal support.

What Happens Next

If the Senate approves both bills, they would take effect 90 days after becoming law.

The Michigan Senate Committee on Transportation and Infrastructure will now decide whether to advance the bills for a full Senate vote.