American retailers and manufacturers are increasingly turning to rail transport as trucking costs rise to their highest levels in four years. While companies had earlier favored trucking for its speed and reliability in moving goods such as furniture, food, and electronics, escalating freight rates are prompting a reevaluation of intermodal shipping—combining railroads for long-haul transport with trucking for final delivery.
According to freight brokerage Traffix, companies are actively exploring intermodal options to enhance supply chain reliability amid rising expenses. North American intermodal volume, which comprises rail transport of containers and truck trailers, climbed about 6% year-over-year in May to roughly 369,000 containers and trailers per week, marking the largest increase since March 2025. That earlier surge had been driven by companies rushing to import goods ahead of anticipated tariffs.
Despite the benefits, intermodal transport is slower and more complex than direct trucking. Trains can experience delays at rail yards, and containers waiting at terminals may be vulnerable to theft. Nevertheless, the cost savings and greater fuel efficiency—particularly relevant amid soaring fuel prices—are making this option more attractive to shippers.
Trucking rates have risen as the industry confronts a shrinking pool of carriers after years of excess capacity and insufficient loads. The departure of numerous trucking companies accelerated over the past year due in part to low profitability and increased regulatory scrutiny of foreign drivers introduced during the Trump administration. As a result, higher truck freight costs are pushing more businesses to consider intermodal alternatives that can offer savings estimated by logistics executives to range from 10% to 20%.
Data from intermodal-service provider InTek Logistics showed the average spot rate for U.S. intermodal shipments was $1.16 per mile for the week ending June 16. This is significantly lower than the $3.05 per mile average spot rate for standard large truckloads reported by DAT Freight & Analytics for the week ending June 13. Most intermodal shipments, however, are contracted under long-term agreements rather than spot pricing.
The U.S.-Mexico border crossing has seen particularly strong demand for intermodal shipping as some truck drivers avoid the route due to concerns over immigration enforcement actions. Industry leaders also point to recent investments by railroads and intermodal providers aimed at improving reliability as a factor encouraging shippers to adopt this model.
Reflecting the trend, J.B. Hunt Transport Services, a leading intermodal carrier, reported its highest domestic intermodal volumes on record during the first quarter, underscoring growing confidence in rail-based freight as transportation costs continue to rise.