Rising truck transportation rates and the recent spike in fuel prices in the United States are driving shippers back to the use of slower but less expensive intermodal transit by railroad.
According to the Association of American Railroads, intermodal transports involving rail increased 6% in May from a year earlier to an average of around 369,000 containers and trailers a week, the largest annual increase since March 2025. In recent years, shippers abandoned the railroad because of the speed and security of trucking, but as rates by road climb toward their highest levels in four years, some businesses are sacrificing speed for price.
The average spot rate for U.S. intermodal was $1.16 a mile for the week ended June 16, according to service provider InTek Logistics, compared to the $3.05 a mile average spot trucking rate reported by DAT Freight & Analytics.
“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 National’s new president and chief executive, after the leading American transport company introduced Schneider Fast Track last year, giving customers priority on its most reliable lanes and improving average transit times.
IAM Member Impact: With so many import and export ocean containers traveling by rail in the United States, higher rail volumes at key inland ramps such as Chicago, Dallas, and Kansas City could lead to congestion, equipment imbalances, and container dwell time issues.
Source: The Wall Street Journal