Lobster shipment worth $400k hijacked before reaching Costco stores

A shipment of live lobsters, valued at $400,000 and en route to Costco stores across the Midwest, mysteriously disappeared somewhere between Massachusetts and its intended destinations in Illinois and Minnesota. The cargo was intercepted before it could reach its final stop.

This incident marks yet another high-value theft, part of what law enforcement describes as an escalating series of organized attacks on the U.S. supply chain.

The shipment commenced its journey in Taunton, Massachusetts, with plans to be delivered to various Costco outlets hundreds of miles away. However, it never reached its Midwest destinations.

Dylan Rexing, CEO of the Indiana-based Rexing Companies, which handles logistics, verified the theft. He mentioned that investigators suspect an organized cargo theft ring is behind the heist, targeting valuable goods moving through the transport network.

“This is a significant problem nationwide,” Rexing stated during an interview with WFLD. “It directly affects businesses and leads to increased prices for consumers.”

The incident has prompted a federal investigation, with the FBI now looking into the case. So far, no arrests have been made.

According to Rexing, the theft appears far from random. He said law enforcement informed him that another seafood shipment was stolen earlier this month from the same Massachusetts facility. 

The detail that has raised concerns about systematic targeting and inside knowledge of shipping schedules.

A $400,000 shipment of live lobsters was hijacked while in transit to Midwest Costco stores, authorities say

A $400,000 shipment of live lobsters was hijacked while in transit to Midwest Costco stores, authorities say

Costco locations in Illinois and Minnesota were expecting a delivery before it vanished en route

Costco locations in Illinois and Minnesota were expecting a delivery before it vanished en route

For Rexing Companies, which is based in Evansville, Indiana, the impact is significant.

Rexing said the loss affects more than just balance sheets, noting it could ripple through hiring plans and employee bonuses at his company, which employs more than 100 people.

The hijacked lobster shipment is the latest example of a nationwide surge in cargo theft that has drawn increasing attention from federal authorities. 

Earlier this year, Homeland Security Investigations launched ‘Operation Boiling Point,’ a coordinated effort aimed at dismantling organized retail and cargo theft networks.

In announcing the operation, HSI said cargo theft is responsible for an estimated $15 billion to $35 billion in losses annually, with organized groups targeting shipments at ports of entry, truck stops, freight trains and other points along the supply chain while goods are in transit.

HSI also warned that while cargo theft rings are not always directly involved in organized retail crime, ‘they can be linked to common fences/fencers that are purchasing the stolen goods,’ effectively feeding a broader underground market.

The Department of Transportation has also raised alarms. 

Investigators believe the stolen lobster load was targeted by an organized cargo theft ring (file)

Investigators believe the stolen lobster load was targeted by an organized cargo theft ring (file)

In September, the agency issued a request for information seeking input from law enforcement, transportation agencies, freight carriers, and the public on how to better protect the US supply chain.

‘Cargo theft is a growing concern for the US transportation system, costing the economy billions annually,’ the DOT said in summary. 

‘These crimes involve opportunistic ‘straight thefts’ of trailers, containers, and loads at truck stops or multimodal distribution hubs and highly coordinated operations conducted by organized criminal networks.’

The department added that such crimes not only disrupt supply chains and cause significant economic losses, but can also help fund broader illicit activities, including narcotics trafficking, counterfeiting and human smuggling.

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