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In 2024, cargo pilferage on rail and at train yards accounted for 9% of total confirmed thefts. 63% of these thefts occurred on rail and 37% at train yards. When compared to that same period (Jan-Sep) in 2023, rail cargo theft increased by 58%. This means that, out of all locations, rail cargo thefts experienced the highest increase in crime over the past year.
Unfortunately, several factors have caused freight trains to become a breeding ground for organized theft. Understanding these factors is essential in order to prevent more goods from being stolen, support police departments in cargo recovery, and more generally protect supply chains.
Cargo train thefts in the United States
Over the last year, several statistics have emerged regarding rail cargo theft in the US. For example, most thefts took place in large transportation hubs including Illinois (26%), California (22%), Tennessee (13%), and Arizona (4%). The main hotspots were Chicago, South California, Memphis, and Winslow. Auto & Parts (59%) was the most commonly stolen product type, followed by Electronics and Clothing & Shoes, which each represented 16% of total events.
Thursday to Saturday accounted for 57% of the thefts, while Monday to Wednesday represented 39% of the total. 36% of the events took place between midnight and 6 a.m., while 25% occurred between 6 a.m. and noon. These activities represented 61% of all events.
Of course, rail thefts don’t only impact the US, but the issue seems especially prevalent here for several reasons:
1. High-value goods
Train cars are often packed with high-value goods, which can equal high returns for criminals. For example, along with the aforementioned electronics, train shipments can include pharmaceuticals and luxury goods.
2. Lower penalties
When compared to other crimes, rail cargo theft tends to have less strict penalties. Coupled with the potential for big returns, this makes it an especially appealing target in terms of “low risks, high rewards.”
3. Multiple opportunities
Tens of billions of dollars worth of shipments transport through the US via rail each year. They also make multiple stops to load and unload, and are sometimes left unattended for long periods of time. Each of these shipments and stops is an opportunity for thieves to strike.
4. Ease of transport
In the US, several tracks and rail yards are located near the Mexico border. This gives thieves the opportunity to smuggle goods from the US out of the country. At this point, they’ll either be sold on the Black Market or falsely reintroduced into the supply chain as legitimately obtained products.
5. Lackluster security
Many companies lack the proper security measures to prevent theft. Local law enforcement agencies are also often overwhelmed by the sheer amount of crimes. This means they don’t always have the resources or law enforcement officers they need to react.
Of course, it’s always better to prevent a crime than to try and work with the police force to return stolen products. Fortunately, Overhaul offers advanced technologies and solutions to prepare and respond to rail cargo theft.
How Overhaul prevents cargo train thefts
Overhaul’s suite of solutions includes multimodal support. Through our intelligence and active risk monitoring, you’ll stay aware of emerging and evolving thefts both on and off rail. You’ll also have the insights you need to prevent other obstacles with rail transport, such as train delays, weather hazards, or product quality concerns.
Unfortunately, cargo criminals are only growing more and more sophisticated. Rail will remain an attractive target, and in some cases, it’s impossible to ship products without it. Fortunately, with Overhaul’s risk assessments, you can learn even more about anticipated threats. In turn, you’ll be prepared no matter what happens and more easily be able to meet and exceed KPIs.
If your company ships products via rail, learn how we can help prevent stolen goods. And if you think rail shipments might be in your future, learn more about the importance of scalable supply chain solutions.
