U.S. shippers would increase their use of rail if they had better visibility into goods in transit, according to new research commissioned by the German security technology provider Giesecke+Devrient (G+D).
G+D’s report said that only 23% of shippers are currently able to continuously track and monitor the condition of goods moved by rail. At the same time, 84% said they would be more likely to increase their use of rail in future logistics operations if they had greater visibility.
Those results come from a survey of 500 U.S. logistics, transportation and supply chain decision-makers. And the findings show that freight competitiveness increasingly depends on trusted, real-time data from connected assets, not just the physical movement of goods.
Specifically, logistics providers and shippers say that visibility is no longer limited to knowing where freight is. It increasingly means having access to reliable data from connected assets that can support faster decisions, stronger accountability and more resilient supply chain operations.
Respondents said this data layer would support their operations in several ways. The leading motivation for greater visibility was the ability to plan and optimize downstream operations, cited by 45%. This was followed by the need for verifiable evidence to contest accessorial and demurrage charges (33%), condition monitoring for perishable, pharmaceutical or hazardous goods (33%), and earlier alerts to theft or unexpected movement (32%).
Clearly, end-to-end visibility across the freight journey is a key priority for shippers. Yet this view is often lost during the rail leg: only 26% of respondents had access to real-time location tracking in rail transport, while 14% were limited to occasional location updates and another 14% to departure and arrival times. Respondents identified this lack of visibility as their number one frustration with rail as a mode of transport.
The survey also measured various additional concerns that shippers hold about rail freight:
- Greater visibility could encourage respondents to shift more freight to rail, especially since it could improve their ability to react to cargo theft. Nine in ten respondents (90%) said they were extremely or somewhat concerned about cargo theft.
- Fees incurred during rail transit are another concern. Four in five decision-makers (80%) said charges such as demurrage and accessorial fees were at least sometimes inaccurate, excessive or otherwise worth contesting. A further 80% said full visibility into goods in transit would make them more likely to challenge such charges.
- Beyond location tracking, respondents identified damage detection as the most valuable use case for condition monitoring during rail transit, followed by tampering alerts, door opening, temperature monitoring, moisture monitoring, and shock detection.
