Ask Ahab: September 15, 2026

Dear Ahab:

I hear U.S. Customs and Border Protection (CBP) is strengthening their enforcement of compliance by requiring shippers to use a CTPAT-validated, or a CTPAT-validated licensed customs broker to file entries. Why are they doing this, and how should I prepare my supply chain?

– Should I Be Concerned

Dear Should I Be Concerned:

In June, President Trump signed Executive Order 14411, which orders CBP to strengthen customs enforcement by requiring foreign Importers of Record to either be CTPAT-validated themselves or use a CTPAT-validated licensed customs broker to file entries. The goal of the order is to increase transparency, improve supply chain security, and reduce customs fraud, including duty evasion, misclassification, and other compliance violations.

The order stems from legitimate concerns that some providers have been avoiding duties and tariffs by undervaluing goods, misclassifying products, or obscuring the identity of the true Importer of record. As a result, CBP is demanding greater visibility into who is importing the goods, who is responsible for duties and taxes, and whether the correct amounts are being paid.

For shippers, this means greater scrutiny of import transactions and more due diligence requirements. CTPAT-validated brokers will be expected to verify information such as ownership, compliance history, supply chain details, and the importer's ability to pay duties and fees.

Now is the time to confirm whether your customs broker is CTPAT-validated and ensure you can readily provide documentation supporting your import activities. While the process may require more leg work, working with a reputable, compliant broker can help reduce the risk of delays, audits, penalties, and costly supply chain disruptions in the future.

Dear Ahab:

Cargo theft incidents have leveled off over the past year, yet total cost of losses has more than doubled. How is that possible, and what steps can I take to better protect my cargo?

– Theft Terrified

Dear Theft Terrified:

I agree that those numbers seem contradictory, but they highlight an important shift in cargo crime. While the total number of thefts may have remained the same, organized criminal groups are increasingly targeting higher-value shipments, leading to significantly larger financial losses per theft. Electronics, pharmaceuticals, luxury goods, and other high-value cargoes remain especially attractive targets, and sophisticated fraud schemes such as identity theft, fictitious pickups, and cyber-enabled cargo theft continue to grow.

The good news is that shippers can take several steps to reduce their risk. Thorough carrier vetting, shipment visibility tools, and heightened vigilance around documentation can all help deter theft. However, even the strongest security measures cannot eliminate risk entirely.

That is why cargo insurance remains one of the most important tools in a shipper's risk management strategy. When theft occurs, cargo insurance can help protect your financial interests, minimize disruption, and provide valuable peace of mind.