Recent data from the United States points to a sharp rise in cargo theft, with reported losses in the hundreds of millions and estimates suggesting the true cost may approach or exceed $1 billion annually, driven by organized criminal networks using increasingly sophisticated tactics. High-value shipments are being targeted with precision, and supply chains are under increasing pressure from significant financial losses.
For Niels Pas, CEO of Hoefon Security Seals, this trend signals a deeper structural issue within the industry itself.
"This is not a sudden problem. It is a visible consequence of years of reactive thinking," Pas says. "We have allowed security to become something we address after an incident happens instead of something we design into the system from the beginning."
According to Pas, the tools required to deter and prevent many of these incidents already exist. The challenge lies in how they are applied. Security measures are often implemented only after a breach occurs, creating a cycle where innovation is driven by loss rather than foresight. In this environment, he adds, companies remain vulnerable even as they increase spending on protection.
"Effective security is not about stopping access," Pas says. "It is about creating a visible barrier that discourages attempts in the first place. When systems are strong and consistent, they change the behavior of those looking for opportunities."
Pas emphasizes that the cargo security sector has historically relied on established standards without pushing beyond them. Certification frameworks such as ISO 17712 provide a baseline, yet he believes that they have unintentionally limited progress by defining what is acceptable rather than what is necessary.
"The industry has treated minimum requirements as a finish line," he notes. "In reality, they are only a starting point. Meeting a standard does not guarantee resilience against modern threats."
Pas points out that this reliance on baseline compliance has created inconsistencies across the market. Companies often promote their products based on internal testing methods that lack universal benchmarks. He says that this has led to confusion among buyers and has allowed lower-quality solutions to compete on price rather than performance. During periods of increased theft, he adds, demand rises quickly, and the market responds with urgency rather than rigor.
"When incidents increase, there is a rush to secure assets as quickly and cheaply as possible," Pas says. "That environment rewards speed over substance and allows weak solutions to gain traction. It becomes a cycle that undermines long-term security."
According to Pas, Hoefon Security Seals has taken a different approach. He highlights that the company has consistently focused on exceeding industry expectations rather than aligning with them. "We have always believed that responsibility does not end at compliance," Pas explains. "If the minimum requirement is fifty, then the question should be how far beyond that we can go to deliver real protection. That is why our testing protocols go beyond standard requirements, with internal benchmarks that significantly raise the bar for durability and resistance."
Even with these advancements, Pas acknowledges that organized crime presents a unique challenge. These groups operate with intent, resources, and specialized tools, making them far more difficult to deter than opportunistic actors. The industry has often regarded complete prevention against such threats as unrealistic. Pas believes that the assumption must change.
"Organized crime has been treated as an unavoidable risk," he says. "We see it as a problem that demands a new level of thinking. If the threat evolves, then our responses must evolve faster. We are actively investing in solutions designed to address these complex scenarios." While details remain under development, Pas indicates that upcoming innovations will challenge long-standing assumptions about what is possible in cargo security.
"We are working on advancements that will redefine expectations," he shares. "The goal is to shift the conversation from mitigation to genuine prevention."
For Pas, the urgency is clear. Each new headline detailing large-scale theft or supply chain disruption reinforces the need for decisive action. He questions how many incidents the industry must witness before meaningful change becomes standard practice.
"How often do we need to see the same story repeated before we decide to act differently?" he asks. "Security cannot remain a reaction to loss. It must become a commitment to prevention."
As global trade continues to expand and supply chains grow more complex, the stakes will only increase. Pas believes that the path forward requires a collective shift in mindset, where innovation is prioritized, and accountability extends beyond compliance.
"The future of cargo security depends on our willingness to lead rather than follow," he notes. "We cannot afford to wait for the next crisis to tell us what we should have done."
