Michigan Legislature Passes Tougher Cargo Theft Penalties as Trucking Groups Urge Criminal Crackdown

Michigan House Bills Seek to Add Up to 10 Years in Prison for Cargo Theft Convictions

Two companion bills passed by the Michigan House on March 10 would allow prosecutors to seek up to 10 additional years in prison for certain cargo theft convictions, according to state representatives who say organized criminal networks have targeted Michigan as a prime target for theft.

House Bill 5125, sponsored by state Rep. Mike Harris, R-Waterford, would amend the Michigan Penal Code so prosecutors can seek enhanced sentencing for larceny involving stolen cargo. Under the proposed law, any prison term imposed would run consecutively rather than concurrently with other violations from the same judicial transaction.

HB 5126, sponsored by Rep. Steve Frisbie, would classify cargo theft as a Class D property felony with a maximum 10-year prison sentence upon conviction. The bill cannot take effect without the Legislature also approving HB 5125.

Both bills passed the House by a vote of 87-20 and moved to the Senate, where they were referred March 17 to the Senate Committee on Transportation and Infrastructure. They currently await committee action.

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

Trucking Industry Backs Enhanced Penalties

The Michigan Trucking Association and other carrier groups testified in support of the proposals during a Feb. 25 House Judiciary Committee hearing.

Michigan Trucking Association CEO Jill Sokacz said nationally cargo theft losses are approximately $18 million per day, which equates to about $521,000 annually per trucking company. Most Michigan carriers are small family-owned businesses that cannot absorb such costs, she noted.

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 described an incident in which one member's truck was stolen with a load of pickles and later recovered in Florida filled with bottled water meant for delivery. Another member reported two similar thefts within the past year in which thieves decided their loads of flour and meat were not worth stealing. Both incidents resulted in losses from spoiled cargo that was unsellable, plus insurance deductibles of $75,000 per incident.

The second company runs 60 trucks. Kordish, a third-generation leader of her family-owned Ralph Moyle Inc., said her company runs 60 trucks and has experienced cargo thefts that resulted in spoilage losses and insurance costs harming their profitability.

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.

Claims of Organized International Crime

State House Republicans say the state has experienced a boom in cargo theft from railcars and storage facilities linked specifically to international gangs, particularly in Detroit and surrounding Wayne County.

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.

Potential Federal Action

As Michigan considers tougher penalties, federal legislation is also moving forward to address cargo theft concerns. 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.

The proposed federal legislation would eliminate Motor Carrier numbers, phasing them out over five years in favor of U.S. DOT numbers. Other elements include:

• Mandating completion of the Unified Carrier Registration System within one year of passage
• Expanding the U.S. DOT's ability to withhold or revoke registration for certain felonies or nondisclosures
• Enhancing oversight for commercial driver's license issuance and commercial driver training
• Establishing 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 tools for pursuing and prosecuting cargo thieves. It mandates creation of the Organized Retail and Supply Chain Crime Coordination Center within Homeland Security Investigations and the Department of Homeland Security, which would improve collaboration between federal and local agencies investigating cargo crimes.

The proposed federal legislation currently has 206 co-sponsors. During a recent Committee mark-up session, the House Committee on the Judiciary approved the bill and sent it to the full chamber for a vote.

If passed, both HB 5125 and HB 5126 would take effect 90 days after becoming law.