Theft on the Rails
Anyone outside of the transportation and logistics industry might picture an old black and white movie when they think of rail theft. Google train robbery or heist, and you’re greeted with images of Westerns and turn of the century films. But unfortunately for today’s logistics professionals, railway robberies are very much a modern and growing problem.
Rail cargo theft increased 58% in 2024 compared to that same time period (Jan-Sep) in 2023, according to data collected by Overhaul. 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.
“I’ve been doing this for 26 years, and I’ve never seen this in my whole career as bad as it’s been the last two years,” says Kristy Knichel, CEO of Knichel Logistics in Gibsonia, Pa.
These thefts, which have risen at major transportation hubs in Chicago, Southern California, Memphis and Winslow typically occur when a container sits on a rail ramp for an extended period of time. While the consequences are costly for the transportation and logistics industry, most of the criminals caught in these thefts are punished with nothing more than a slap on the wrist. Couple this with fewer and fewer resources at the railroads, and the risk of cargo theft while on the rail lines will only continue to rise.
“It’s one of those things that if this continues, there will be retaliation from our customers and our shippers,” warns Kristina Deprey, director of logistics, Paper Transport, Inc in De Pere, Wis. “They’re going to become more stringent and strict…To a lot of people this is a victimless kind of crime, but in reality, that cost gets pushed somewhere, either to the customer who’s shipping that freight or to the carrier that’s moving it.”
In an industry where every dollar counts, these types of added, unnecessary costs can even force brokers and carriers out of business. While ultimately it should be up to the railroads to protect your precious cargo, the reality is that transportation companies need to become more proactive when it comes to theft and fraud.
Why Rail Theft?
According to Knichel, the number one reason rail theft has increased is the lack of prosecution by law enforcement, leading to minimal consequences for thieves.
“A lot of times, these people will get arrested and get out of jail right away,” she says. “There are also jurisdiction challenges moving across state, city and county lines that make it more challenging. Rail theft is often non-violent, with partial contents of the container stolen, so it’s considered a lower priority.”
Jeffrey Brashares, director of domestic intermodal sales, CMA-CGM America in Delaware, Ohio, attributes higher rail thefts to an overall increase in rail traffic compared to 30 years ago, as well as a heightened awareness that it’s even happening.
“There’s more focus on, ‘How do you stop that, and how do you stop people from breaking into a container’”? he says.
On the flip side, criminals are also more aware of how easy it can be to steal from a container stopped on the tracks. They see it on social media or read about it in the news, and think, “Well, maybe I can get away with it too.”
Deprey agrees, noting “there’s always been a component of theft within rail, as with all in all transportation, but I think what we have seen is there is just a heightened awareness.”
She adds that with this increased awareness has come a feeling of helplessness among the transportation and logistics community as they work to combat theft and fraud.
Railroads Invest in Added Security Measures
As cargo theft claims continue to skyrocket, the railroads undoubtedly are taking the problem seriously. Major railways have bulked up security and continue to invest in innovative solutions to stopping criminals.
Security measures include the implementation of drone and aircraft patrols to monitor stopped containers on the tracks and in the yard. This is something thieves are well aware of, however, with BNSF reporting that their flight tracker is the second most tracked plane in the country.
Another tactic the rails are looking at is changing interchange location times to minimize criminal activity, with the days between Thursday and Saturday accounting for more than half (57%) of thefts in 2024, according to Overhaul.
“Railroads are trying to keep the trains moving and minimize the dwell outside terminals and constantly looking to improve the fluidity and the speed of the network,” says Knichel.
Knichel adds that some railroads are building fences around track where the trains are sticking out of the ramp to protect them. In Memphis, CSX took this tactic, and Knichel says it virtually eliminated their theft problem.
“There were people literally waiting there for security to leave, and they would all run up to the train that’s sticking outside the ramp to start breaking into the containers,” she explains.
Despite these efforts, however, until the government gets serious about theft and fraud in the transportation and logistics industry, it is unlikely any real change will be seen.
So, What Can We Do?
Solving the industry’s theft and fraud epidemic, ultimately, must be a team effort, with all parties doing their part to prevent criminal activity. There are a number of steps brokers can take to improve the security of their cargo like investing in better carrier vetting systems, installing advanced container seals, and using tracking technologies inside containers.
Knichel also recommends rethinking how you load your containers, ensuring you place higher value product in the front of containers. Knichel Logistics works with the rails to have high value containers placed at the bottom of the well. If they are double stacked, the container on the top is more likely to be broken into versus the one on the bottom where you are unable to open the doors.
Deprey offers similar advice, suggesting block embraces in addition that can make it more difficult for someone to physically remove that product from the container.
“It’s really just the physical barrier of not being able to get into that container,” she says. “Those are things that people have done for a long time. That’s kind of table stakes at this point.”
Maybe the most important thing you can do to protect your cargo from theft, though, is to know your customers.
“Back in the 90s, we knew every customer,” says Brashares. “I called on every customer along with our executive officers, and we knew what they shipped. We knew what they did. We’ve been on their dock. We’ve been at the receiving facilities.
“The more you know about the shipper and the things that they do; I think it’s easier to prevent those kinds of things,” says Brashares. “The best thing you can do is be intimately connected to your customer and what kind of business they do and where they go.”
Deprey agrees that maintaining long-term broker-carrier relationships is your best prevention. She suggests implementing waiting periods for new customers and double-checking FMCSA and TIA alerts to ensure you really know who you are working with.
“The biggest part of protecting yourself is making sure that you understand who your carriers are, and you have open conversations with your customers,” says Deprey. “Don’t assume at any point in time that you know who you’re talking to. Make sure that you’re doubling down on who you’re talking with and working with, and then for shippers being open to the suggestions that your carriers make.”
Amy Wunderlin is the senior editor of 3PL Perspectives. She is an experienced supply chain and logistics freelance writer. You can reach her at amywunderlin@gmail.com
