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Cannabis Cargo Theft a Real Threat to Cannabis Businesses

Most businesses that have sell some form of retail merchandise likely rely upon shipping methods. Retail goods need to be moved from one location to another and cannabis related products are no different. Where the cannabis businesses differ is that if that if cargo or merchandise gets stolen, the black market is very extensive and the stolen products are virtually untraceable. Here's just one of many examples:

As reported in an article in Ganjapreneur, Cannabis supply company Advanced Nutrients says a shipment worth $250,000 was stolen during transit from its Washington-based facility to a warehouse in Valencia, California. Advanced Nutrients, one of the cannabis industry’s biggest and most successful cultivation nutrient brands, reported this week that a truck carrying a shipment of $250,000 worth of nutrients was stolen.
The truck and trailer — which were en route from the company’s main facility in Woodland, Washington to a warehouse in Valencia, California — were reported stolen in Riverdale and later recovered in Oakland, but the truck had been “ransacked;” its contents, $250,000 worth of cannabis nutrients, were missing.
Clarie Darnell, a spokesperson for Advanced Nutrients, told the Fresno Bee that the firm had hired a shipping company to deliver the product and the driver had stopped overnight when the grand theft occurred. Darnell said that the shipment was insured.

Cannabis cargo theft is a legitimate risk to marijuana related businesses and their ability to turn a profit. A lost or stolen shipment of product (be it paraphernalia edibles, flowers, plants or oils) would be a set back and could cause serious financial problems. If you’ve already paid for merchandise and become a victim of cargo theft, how do you recover your loss? Fortunately, Advanced Nutrients had the right insurance policies in place to recover their losses.

Cannabis businesses need special Cargo/Transportation/Warehouse Insurance to protect their goods against physical damage, loss or theft while in a warehouse or during shipping, whether by land, sea or air. Cargo theft is becoming more advanced and requires cannabis businesses to stay steps ahead of crafty thieves. Thieves will create fraudulent businesses to arrange for non-existent pickups and will find other ways to exploit gaps in supply chains, even leveraging advanced technology to do so.

“Knowing the tactics that cargo thieves use can help businesses recognize their unique vulnerabilities and develop a risk management plan that will help prevent potential cargo theft,” explains Eric Rahn, of S2S Insurance Specialists. "Some of those tactics include identity theft, fake pick ups, misdirected loads, theft of trailer/container, hybrid theft scams and of course any combination of those previously mentioned. In order to help prevent cargo theft, cannabis businesses should conduct their due diligence on all third parties responsible for shipping their cargo, but also take additional safety and security precautions. Having Cargo Insurance as part of your policy is critical."


S2S Insurance Specialists insures the most difficult risks facing your company and can develop a customized Cargo/Warehouse/Transportation insurance policy designed to fully protect your merchandise. To learn more, contact Eric Rahn at or schedule a free 15-minute consultation by clicking here.


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