Criminals stole more than $200 million in goods from U.S. freight rail networks in 2025, carrying out roughly 75,000 thefts as organized groups continued to target trains carrying electronics, clothing, tires and other merchandise.
Rail theft has increased sharply from pre-pandemic levels. Criminal groups have learned to exploit predictable stops near major freight hubs, particularly in Memphis, Chicago and Los Angeles. Long trains with small crews can provide thieves with opportunities to break into containers and remove thousands of dollars in merchandise within minutes.
The losses have direct implications for cargo insurers and claims professionals. Rail carriers generally have liability for lost goods up to specified limits, while shippers may insure values above those limits. A single theft can involve questions about cargo valuation, carrier responsibility, security measures, recovery prospects and the documentation needed to establish exactly what disappeared in transit.
Some losses are substantial. About 1,985 pairs of unreleased Nike shoes valued at more than $440,000 were stolen from a BNSF train in one case. Los Angeles police recovered about $1.5 million in stolen cargo during another investigation. CSX says more than $900,000 worth of tires have been stolen from trains across its network since the beginning of 2023.
Railroads are responding with increasingly sophisticated loss-control measures. Union Pacific has spent more than $30 million on security projects since January 2023, including thermal-imaging drones, AI-enhanced cameras, walls and fencing. BNSF is investing in electric fencing, masonry walls and cut-resistant barriers. CSX has spent more than $7.5 million securing its Leewood Yard in Memphis with fencing, razor wire and AI-supported surveillance.
Those investments are also producing information that can become important during claims investigations. Surveillance systems can identify vehicles associated with thefts even when criminals switch license plates, while drones and other monitoring systems can help investigators reconstruct events and connect stolen merchandise to suspects. CSX says its combined security efforts contributed to an 80% year-over-year decline in rail thefts in the Memphis area.
Criminal groups are adapting. Investigators report thieves using walkie-talkies instead of mobile phones, targeting trains farther from urban centers and, in some cases, jumping onto moving trains as they slow. More sophisticated groups have allegedly sabotaged tracks or brake systems to force trains to stop in locations where cargo is easier to steal.
The evolving tactics create another challenge for cargo claims adjusters and investigators. Determining whether a loss resulted from opportunistic theft, an organized operation or deliberate interference with railroad equipment can affect evidence collection, recovery efforts and coordination among insurers, carriers and law enforcement.
Congress is also considering a stronger federal response. The House passed the Combating Organized Retail Crime Act in May, legislation intended to give investigators additional tools against organized theft networks. Among its provisions are expanded criminal forfeiture, changes involving money-laundering laws and the ability to aggregate theft values for more serious charges.
For claims organizations, the scale of rail theft reinforces the importance of cargo tracking, detailed shipping records, rapid notification and coordination with transportation companies and law enforcement. As railroads add AI surveillance and other monitoring technology, claims investigations may also have access to more evidence for establishing when and where a loss occurred and identifying opportunities for recovery.
