U.S. retailers and manufacturers are moving freight back to railroads as trucking rates climb toward their highest levels in four years, a shift that logistics executives say is reshaping supply-chain strategies across the country.
North American intermodal transport — in which railroads carry containers and truck trailers before short-haul trucks complete delivery — rose about 6% in May from a year earlier to an average of about 369,000 containers and trailers a week, according to the Association of American Railroads. That marked the largest annual increase since March 2025, when companies rushed merchandise into the U.S. ahead of expected tariffs.
“Everybody’s exploring intermodal,” said Milton Magos, vice president of Mexico operations at freight brokerage Traffix. “They want to know how they can make their supply chain more reliable.”
Trucking rates are climbing after four years in which carriers squeezed by excess capacity and thin margins exited the market. An exodus of carriers has accelerated over the past year, according to logistics executives, due to low earnings combined with a Trump administration crackdown on foreign drivers. The rising cost has made intermodal a more attractive option: Mark Yeager, chief executive of Redwood Logistics, said the potential savings from switching have driven more companies to consider intermodal, with savings of 10% to 20% possible.
The average spot rate for U.S. intermodal was $1.16 a mile for the week ended June 16, according to intermodal-service provider InTek Logistics, while the average spot rate for the most common type of big rig was $3.05 a mile for the week ending June 13, according to DAT Freight & Analytics. Most intermodal loads move under long-term contract rates rather than spot-market pricing.
Intermodal transport is slower and more complex than long-haul trucking. Trains stalled at rail yards and containers sitting at terminals can be targeted by thieves. But intermodal is also cheaper and more fuel-efficient — a particular advantage as fuel prices have risen due to the war in Iran, according to the Journal report.
Magos said intermodal shipping is especially in demand for moving goods across the U.S.-Mexico border, as some truck drivers avoid the route for fear of being swept up in U.S. immigration enforcement. “Drivers are not necessarily willing, or as willing as in the past, to go and do these deliveries, so this is tightening capacity,” he said.
Logistics executives say investments by railroads and intermodal providers in faster, more reliable service have helped shippers make the switch. J.B. Hunt Transport Services, one of the country’s largest intermodal providers, reported its highest-ever first-quarter domestic intermodal volume. While companies often choose intermodal to cut transportation costs, “the confidence in execution makes it then a more durable long-term change,” Spencer Frazier, executive vice president of sales and marketing, told investors this month.
The company in 2023 launched a service with BNSF Railway that promises to deliver shipments a day faster on average than traditional intermodal.
Schneider National has also seen more demand for intermodal this year. The company last year launched Schneider Fast Track, a product that gives customers priority placement on its most reliable lanes and speeds up average transit times. The service includes real-time shipment monitoring and recovery assistance if issues arise.
“As reliability has strengthened, more shippers are increasingly viewing intermodal as a viable, cost-effective complement to over-the-road freight,” said Jim Filter, Schneider’s incoming president and chief executive.