Highly organized crime rings are targeting railroads to steal millions of dollars in cargo, according to a recent update by the Association of American Railroads.

Coordinated federal action is key to disrupting crime and protecting consumers, the association said.

In addition to the costs of insurance claims for stolen goods, railroads are responsible for the repairs or replacement of damaged infrastructure while managing operational delays that disrupt the network.

Railroads must also invest in new anti-theft technologies and allocate additional resources to combat the crimes across the 140,000-mile U.S. rail network.

All factors that contribute to the rising operational costs and inflationary pressures for businesses and consumers.

Industry estimates suggest that over 65,000 thefts occurred in 2024, an estimated 40 percent increase over the prior year.

Railroads are also reporting an escalation in tactics by the suspects, who are now many times armed. The concern is that the crimes could escalate to include violence.

An estimated one in 10 cargo theft attempts results in an arrest.

Many thefts are committed by repeat offenders, according to AAR.

One railroad apprehended the same individual five times in a single day, while another reported arresting the same individual seventeen times for repeated cargo theft attempts.

“Because of the interstate and transnational nature of railroad cargo theft and the ties many criminals have to larger criminal organizations, a federal response is necessary to improve the coordination of data collection and facilitate the apprehension, effective prosecution and detention of those responsible,” the AAR added.