What does 'freight visibility' mean in modern supply chains, and how has it evolved?

Freight visibility encompasses knowing where goods are located, whether they are on schedule, and whether cargo and equipment remain in good condition. Historically, rail provided only periodic checkpoint updates. Modern supply chains now expect continuous data that enable anticipation of disruptions, automation of planning, and faster decision-making. This evolution reflects broader supply chain digitization and the integration of visibility data with AI tools, particularly critical for perishables, pharmaceuticals, and hazardous materials.

Why has rail lagged behind trucking and ocean shipping in adopting visibility technology?

Rail has faced structural barriers that other modes did not. Federal regulations mandate electronic logging devices (ELDs) on trucks, providing built-in power sources and digital tracking infrastructure. Railcars typically have neither, requiring specialized solar-powered equipment with long-life batteries. Additionally, rail's historical data collection model relied on fixed checkpoints for operations and billing, creating visibility limited to handover points rather than full-journey continuous monitoring. This legacy infrastructure has been slower to evolve than customer expectations.

What is the business case for increased rail adoption, and what are the barriers?

The primary business case rests on rail's fuel efficiency (one ton travels approximately 470 miles per gallon compared to trucks) and lower emissions, enabling Scope 3 reduction and cost savings over long distances during high diesel price periods. However, the top frustration cited by 28% of respondents is forecasting arrival times in intermodal transport. Better continuous visibility data can address this by making handovers and downstream planning more reliable, reducing the unpredictability that currently deters shipper volume growth.

What types of connected asset hardware can deliver condition monitoring on railcars?

Connected hardware must withstand harsh conditions (shocks, vibration, dust, water, extreme temperatures) and operate without onboard power. Depending on use cases, sensors may be separate units or integrated into single modules. Solutions include ruggedized tracking devices combining location data with door-opening and other sensor inputs, powered by solar and long-life batteries designed for up to 10-year lifespans. Connected smart labels can also be affixed to parcels, pallets, or high-value goods to detect tampering. These devices generate real-time alerts when predefined events occur, providing a source of visibility data independent of carrier services.

How can real-time monitoring help prevent or respond to cargo theft more effectively?

Reported cargo theft losses more than doubled in Q2 2026, with recovery chances dropping significantly after the first 24 to 48 hours. Real-time monitoring shifts response from retrospective after-the-fact reporting to early detection. An unexpected door-opening alert enables shippers to intervene sooner, notify law enforcement, and warn downstream operations. The same data provides investigators and insurers with time and location evidence of incidents, supporting claims and recovery efforts far faster than traditional reporting models.

Technology & Innovation

High Impact

Rail Visibility Gap Threatens Modal Growth: 84% of U.S. Shippers Want Better Tracking

Oct 21, 2026

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The signal

A new survey by Giesecke+Devrient reveals a critical disconnect in U.S. rail freight: while 84% of shippers would increase rail usage with better visibility, only 26% currently have continuous tracking capability for goods in transit. This visibility gap exposes structural challenges unique to rail, particularly the lack of onboard power infrastructure and standardized condition monitoring that trucking and ocean shipping have largely adopted. The research underscores that modern shippers expect real-time location and condition data (not just checkpoint updates), yet rail has historically relied on fixed-point data collection designed for operations and billing rather than customer insight.

This mismatch threatens rail's competitive position, especially given that rail commands 28% of U.S. freight volume and carries half of freight moves for 26% of surveyed shippers. The findings point to substantial unmet demand: 73% of respondents rank real-time visibility as high or critical priority, but current rail infrastructure cannot deliver. Connected asset technology using solar power and long-life batteries could bridge this gap by providing tamper alerts, door-opening sensors, shock detection, and temperature monitoring alongside location data, addressing the top shipper concerns around cargo theft (90% express concern) and arrival time forecasting (28% cite this as top frustration).

Without industry action, rail risks losing growth opportunities to other freight modes despite its operational advantages in fuel efficiency and emissions reduction.

How this affects:

Gap Inc.

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Frequently Asked Questions

What This Means for Your Supply Chain

Simulation Suggestion

this month

What if Class I rail operators delay visibility platform rollout by 12+ months?

Simulate the competitive impact if major rail operators do not implement industry-standard continuous visibility platforms within the next 12 months. Assume shippers reallocate 5-8% of potential rail freight growth to trucking and intermodal alternatives. Model cost increases for shippers forced to rely on legacy checkpoint data and multiple disconnected tracking sources, reduced operational efficiency in intermodal handovers, and increased cargo theft exposure. Project revenue and market share implications for operators and the broader rail industry.

Run this scenario

Simulation Suggestion

strategic

What if continuous rail tracking adoption reaches 60% of the market within 18 months?

Simulate a scenario where improved connected asset availability and operator-customer data integration enable 60% of active rail shipments to have continuous visibility by the end of 18 months. Model resulting modal shift: assume that each percentage point increase in visibility capability translates to 2-3% growth in rail freight volume, with corresponding reductions in trucking utilization. Calculate impacts on shipper transportation costs, supply chain resilience (fewer lost shipments, faster recovery), and shipper willingness to commit higher volume to rail partners.

Run this scenario

Simulation Suggestion

this month

What if pharma and perishable shippers mandate continuous condition monitoring as a sourcing requirement?

Simulate a scenario where leading pharma and perishables companies (in response to regulatory tightening or quality incidents) add continuous temperature, shock, and tamper monitoring to their rail carrier qualification requirements by Q2 2026. Model the cascading impact: operators without this capability lose access to these high-margin, compliance-sensitive segments; shippers must shift volume to compliant carriers or alternative modes; connected asset equipment costs decline as adoption accelerates. Calculate market segmentation, shipper sourcing flexibility, and operator competitive positioning.

Run this scenario

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