The Surge in Rail Cargo Theft: What It Means for Shippers and How to Respond

Cargo theft on U.S. railroads has seen a dramatic surge over the past two years with more than 65,000 reported incidents in 2024. This year the number of incidents continues to climb to unprecedented levels, posing a serious threat to supply chain integrity and shipper profitability.

For shippers, the impact of cargo theft ripple far beyond the rail lines. Retailers must reposition seasonal inventory at premium rates, eroding margins and threatening on-shelf availability. Manufacturers struggle to meet delivery commitments, especially for custom-made products, and companies are now less competitive with pricing because they will have to charge consumers more to make up for the lost income and added expenses.

“The increase in rail cargo theft has prompted us to alter our import strategies and favor East Coast ports because there is much less evidence of rail theft in those locations,” said Anthony Fullbrook, president of OEC Group’s North American region.

Unlike in year’s past, today’s rail cargo theft is conducted by highly organized criminals who are utilizing a variety of different methods. One method these thieves use, according to industry sources, is to sabotage brake systems to slow trains, pry open containers, and offload goods. Other tech-savvy criminals use encrypted radios and real-time geofencing data to coordinate thefts, while some thieves are able to easily rob a train by impersonating legitimate carriers with cloned credentials. High-value goods such as electronics, food and beverages, and building materials are prime targets, but with so many reported incidents the reality is that all types or cargo are being targeted.

“As problems with rail cargo theft continues to rise, the first step every shipper should take is to purchase cargo insurance, especially as tariffs are making it financially riskier and more expensive to import goods,” said Joe Klobus, OEC Group’s Regional Insurance and Claims Manager. “Additionally, shippers should also work with an expert that has numerous relationships and can help identify and secure alternative shipping routes or modes – such as intermodal or short-haul trucking – for high-value goods. These alternative options can help shippers avoid known hot spots and peak theft seasons.”