Cost of Loss

Put a number on what the gap is costing you.

Most companies know they are losing product and do not know what it costs, because the loss is spread across write offs, expedites, penalties, and premiums that never get added up in one place. This puts them in one place, using your numbers.

How to use it

InputsFive sliders, your own figures
OutputAnnual cost of loss and cost per load
ComparisonLoss against engagement investment
Nothing is sentThe model runs in your browser
Cost of Loss

What your current process is costing you.

Drag the sliders or type your own figures straight into the fields. The model uses what you tell it, nothing else, and returns the result as a cost per load so it can be compared against the rest of your freight spend.

Your operation

Full truckloads or containers your company tenders in a year.

$

Landed value of the product on a typical trailer.

Full thefts plus loads that arrived materially short. Count what you wrote off, not just what you reported.

x

Every stolen load costs more than the product. Expedited replacement, lost production time, customer penalties, claim handling, and premium impact. Set this to whatever your finance team can defend.

$

What you would spend on a chain of custody audit and the rebuild that follows. Scope is quoted after the consultation.

Cost of loss, per load shipped
$0
0% of the freight value you move
Freight value moved per year$0
Direct product loss$0
Downstream cost$0
Total annual cost of loss$0
The comparison
Annual cost of loss
$0
Engagement investment
$0

How this is calculated
LineFormula
Freight value movedLoads per year multiplied by average value per load.
Direct product lossLoads lost or short multiplied by average value per load.
Downstream costDirect loss multiplied by the downstream multiplier, minus the direct loss.
Cost per loadTotal annual cost of loss divided by loads shipped per year.
Break evenThe share of your current annual loss an engagement has to remove before it pays for itself.

This models what your stated loss rate costs. It does not forecast future events. For reference, the average single cargo theft event in 2025 cost $273,990. Verisk CargoNet

Reading the result

Cost per load is the number that travels.

Annual loss totals get argued about. Cost per load does not, because it sits next to every other per load figure your team already manages, and it makes loss comparable to freight rate, packaging, and fuel. When a control adds four dollars a load and removes forty, that decision makes itself.

The downstream multiplier is where most models understate the problem. The stolen product is the smallest line. What follows is expedited replacement at spot rates, production time lost to a rebuild, penalties from a customer whose shelf sat empty, staff hours absorbed by the claim, and the premium at your next renewal.

What the model deliberately leaves out

  • Any prediction of how often you will be hit. That depends on your lanes, product, and controls, which is what an audit is for.
  • Product that has been leaving quietly for years and was absorbed as shrink. If you suspect this, the honest input is higher than your reported number.
  • The customer you lose after the second short delivery, which is real and not something anyone should pretend to quantify from a slider.
  • Regulatory exposure in pharmaceutical and controlled product categories, where a custody gap is a compliance event before it is a financial one.
Next Step

Bring us the numbers you did not want to add up.

We will work through your actual loss history, tell you where it is concentrated, and quote the scope from there. Initial consultations are complimentary and confidential.