The 100 million dollar crisis of railcar theft
Train robberies have long been a part of American folklore, with notorious outlaws like Jesse James and Butch Cassidy hijacking trains to steal thousands of dollars. However, train robberies are not just relics of the past. On the contrary, they are on the rise. Particularly California has become a hotspot for train cargo theft. In this article, we will explore the modern-day crisis of train cargo theft, a billion-dollar problem that remains largely unnoticed by the general public.
Let’s begin by quantifying the scale of railcar theft. In the third quarter of 2024, CargoNet, a theft-focused subsidiary of Verisk, recorded 776 incidents across the U.S. and Canada, marking a 14% increase compared to the same period in 2023. Over the course of the year, the Association of American Railroads reported more than 65,000 cargo thefts, a 40% rise from the previous year, with losses exceeding $100 million for the rail industry. These figures may actually underestimate the true scale of the problem, as railroads don’t report all incidents publicly. According to Keith Lewis, vice president of operations at Verisk’s CargoNet and a deputy sheriff in Arizona : “Why would I want to put my own dirty laundry on the street. If I show a theft trend going along a rail line, everybody’s going to know the railroad has a problem.”
The following video, is no exception to this alarming trend.
Why are railcar thefts on the rise?
The rise in railcar thefts can be attributed to several factors. First and foremost, e-commerce volume has exploded from $5 billion in 1998 to $958 billion today, and it’s projected to surpass $2.5 trillion by 2027. This massive growth has transformed global freight movement and exposed new vulnerabilities. One of the most striking weak points is train cargo, which thieves can alarmingly easy gain access to.
Criminals often sneak aboard freight trains undetected, hiding until the train reaches remote stretches of land. There, they cut an air brake hose, forcing the mile-long train to make an emergency stop. While the engineer remains in the cab, the conductor walks the length of the halted train to identify the issue. This creates a window of opportunity for thieves to pry open railcars with bolt cutters or angle grinders and help themselves to the goods inside. The stolen cargo is then quickly loaded into trucks driven by accomplices trailing the train.
According to the Association of American Railroads (AAR), only one in ten cargo theft attempts in the United States lead to an arrest, a small risk that many seem willing to take. In California, convictions are even rarer, with police having few tools to effectively combat the problem.
Implications of train cargo heists
Train cargo thefts cause enormous financial damage, but the negative consequences go beyond that:
- Supply chains are disrupted, forcing businesses to reroute or shift goods unexpectedly.
- Railcar thefts lead to delayed shipments, disappointing customers and potentially harming brand reputations.
- When food containers are tampered with, they must be thoroughly cleaned before reuse, a process that can take up to eight weeks.
- As shown, businesses relying on rail transport services suffer the most from cargo theft.
How to solve the problem of railcar theft crisis
Tackling the growing problem of train cargo is challenging. Freight trains often travel through isolated regions with little to no surveillance, giving thieves the opportunity to strike unnoticed. Rail security teams are often stretched thin and unable to monitor long stretches of track effectively. Theft often isn’t discovered until long after it occurs, making it hard to catch perpetrators or recover stolen goods. In addition, train cargo containers can be easily and quickly opened using tools like bolt seal cutters, which are commonly available.
Hoefon Security Seals is working closely with both rail transport companies and businesses using their services to decrease the risks of cargo theft. We offer railcar seals that cannot be broken with common tools. We also offer custom made tooling which deter tampering of train containers. Are you interested in our solutions? Please feel free to contact us to discuss the possibilities. Also read our articles about preventing cargo theft and preventing freight damage.
Niels Pas
CEO Hoefon Security Seals
Niels Pas has been Hoefon Security Seals’ CEO since 2017. He has extensive international experience and speaks 4 languages professionally.
