Michigan Lawmakers Push Stricter Penalties for Cargo Theft as Organized Crime Targets State Businesses

Michigan House Representatives introduced two companion bills to enhance criminal penalties for cargo theft, responding to a surge in organized theft that has targeted businesses across the state.

State Rep. Mike Harris, R-Waterford, and State Rep. Steve Frisbie, R-Battle Creek, introduced House Bills 5125 and 5126 on March 10. The bills passed the House with significant bipartisan support and have now moved to the Senate Committee on Transportation and Infrastructure.

Under the proposed legislation, anyone convicted of cargo theft could face an additional prison sentence of up to 10 years.

Criminal Networks Target Michigan

Representatives Harris and Frisbie say international criminal networks have identified Michigan as a prime target for cargo theft, particularly in Wayne County and Detroit.

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

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.

Enhanced Sentencing Proposal

HB 5125 would amend the Michigan Penal Code to allow prosecutors to seek tougher prison sentencing by adding up to 10 years for larceny involving stolen cargo. If the enhanced sentence is imposed, it must be applied consecutively, not concurrently, to any prison term given for another violation in the same judicial transaction.

HB 5126, sponsored by Frisbie, would classify cargo theft as a Class D felony with a maximum 10-year imprisonment upon conviction.

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

The legislation cannot take effect without both bills passing.

Trucking Industry Backs Bills

During a Feb. 25 House Judiciary Committee hearing, Frisbie urged lawmakers to pass the bills, saying supply chains form the backbone of so many businesses.

"This is not petty theft. These are organized groups that are stealing entire cargo loads of trailers. They'll steal the trailer. They'll empty a train car. It's very organized, and that's what we are after," Frisbie said.

The Michigan Trucking Association CEO Jill Sokacz testified in support of the proposals alongside MTA board member Ashley Kordish of Ralph Moyle Inc.

Sokacz said nationally, cargo theft losses are about $18 million a day, which equates to about $521,000 annually per trucking company.

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

Kordish, a third-generation leader of her family-owned trucking company, said her company runs 60 trucks and has experienced two similar cargo theft incidents within the past year.

In one incident, thieves stole a load of pickles and later recovered it in Florida filled with bottled water. In another, thieves cut open a seal on a load of flour, decided it was not worth stealing, and compromised the load. Kordish said she sustained a $25,000 loss on that incident.

A second incident involved a $75,000 load of meat that thieves decided was not worth taking, but which also could not be sold. Kordish said she sustained a $75,000 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 $25,000 out of our pocket for a load of our flour," Kordish said.

Senate Consideration

The bills were referred to the Senate on March 17 and currently sit in the Senate Committee on Transportation and Infrastructure. If passed by the Senate, both proposed bills would take effect 90 days after becoming law.

Federal Action

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

The Securing American Freight, Enforcement, and Reliability in Transport Act, introduced in February, aims to address ongoing issues negatively impacting U.S. freight and highways, improve roadway safety for Americans and protect national security.

The proposed legislation would make significant changes to how carriers, brokers and freight forwarders register with the federal government. The bill would eliminate the use of Motor Carrier numbers, phasing them out over a five-year period in favor of U.S. DOT numbers.

Other key elements include:

• Mandate the completion of the Unified Carrier Registration System within one year of passage
• Expand the U.S. DOT's ability to withhold or revoke registration for certain felonies or nondisclosures
• Enhance oversight for the issuance of commercial driver's licenses and the training of commercial drivers
• Establish the Freight Fraud and Theft Advisory Committee

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 also 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.