AAR: Cargo theft cost Class Is $100M in 2024

Cargo theft cost Class Is over $100 million in losses in 2024, according to the Association of American Railroads.

AAR is calling for a federal response to better support railroads targeted by thieves.

“The disruptions to freight-rail operations are acutely felt, as incidents can involve damage to rail equipment that forces trains to stop, thereby resulting in costly delays in service that ripple across the interconnected network,” said AAR President and CEO Ian Jefferies in The Signal AAR newsletter.

Along with the cost of insurance claims for stolen freight, railroads targeted by theft often need to replace or repair damaged infrastructure, manage the delays caused by disruptions and allocate funding for anti-theft technology, AAR officials said. 

Approximately 65,000 thefts occurred in 2024, a roughly 40% increase over 2023, AAR reports. Railroads also cited an increase in suspects being armed, increasing the potential for violence during apprehension. 

Only one out of 10 theft attempts result in an arrest, AAR officials said. Thefts are still committed by repeat offenders; one railroad reported apprehending the same individual five times in one day; another reported arresting the same person 17 times for repeated theft attempts.

“Railroads have invested millions in preventing these crimes across the 140,000-mile U.S. rail network,” AAR officials said. “However, the industry cannot disrupt these highly organized – and often transnational – criminal groups alone.”

Railroads are working with supply chain partners to call for an increase in penalties for thieves and the advancement of U.S. Reps. David Valadao (R-Calif.) and Rep. Brad Schneider’s (D-Ill.) Safeguarding our Supply Chains Act, which would create a data sharing platform and enhance coordination between the Department of Homeland Security, the FBI and local law enforcement to address cargo theft.