Rising Trucking Rates Drive U.S. Companies Back to the Railroad

U.S. trucking rates are climbing toward their highest levels in four years, and that is nudging some American shippers back toward intermodal rail.

The shift is showing up in freight volumes and in the way retailers, manufacturers and logistics brokers are planning shipments. Rail is slower than long-haul trucking, but it is often cheaper on long routes and more fuel-efficient, which matters more when truck prices are rising.

The Wall Street Journal reported on June 22 that North American intermodal volume rose about 6% in May from a year earlier, to about 369,000 containers and trailers a week, based on Association of American Railroads data. That was the largest annual gain since March 2025.

The report described a freight market that has turned after a long trucking slump. After several years of weak pricing, carriers have exited the market and trucking rates have recovered, changing the economics for shippers that had relied on trucks for more of their linehaul work.

Trucking Costs Are Changing Routing Choices

For many companies, the question is not whether trucking remains important. It does. The question is whether trucking still makes sense for every lane when rates are moving higher and intermodal options are looking more attractive.

Traffix vice president Milton Magos summed up the new posture this way: "Everybody's exploring intermodal."

That shift does not mean rail is replacing trucking. Intermodal service still adds complexity because freight must move between truck and rail. But for longer moves, especially where cost is the dominant factor, the rail leg can reduce total transportation expense enough to outweigh the extra handling.

The article’s central point is that rising trucking rates are not just helping railroads financially. They are changing shipper behavior in real time, as companies rework freight plans to protect margins.

Why Rail Is Getting Another Look

Intermodal has always had a basic tradeoff: it is less flexible and slower than over-the-road trucking, but it can be more economical and more fuel-efficient. When truck capacity is plentiful and prices are soft, many shippers prefer the speed and simplicity of trucking. When rates climb, that calculation changes.

That is now drawing fresh attention from retailers and manufacturers that move large amounts of long-haul freight. Some of those shippers are moving more loads back to rail-based intermodal transport after years of leaning more heavily on trucking.

The rail industry is responding. The Wall Street Journal said logistics firms including J.B. Hunt Transport Services and Schneider National are expanding or improving their intermodal offerings as demand strengthens.

Those moves matter because intermodal capacity and service quality can shape how much freight the market can absorb. If rail operators can keep improving reliability and network access, the current shift could become more durable than a simple rate-driven detour.

The Trucking Backdrop

The current pricing environment follows a long period of weakness in trucking. The broader market had been depressed for years before rates began rising again in 2026, and that recovery has started to tighten the supply picture.

The Wall Street Journal said part of the upward pressure is tied to an exodus of trucking carriers. Fewer carriers means less available capacity, which can support higher rates when freight demand holds up.

Policy is also part of the backdrop. Federal enforcement around driver eligibility has become a live issue for the trucking labor pool, and that has added another source of uncertainty for carriers and brokers.

Separate reporting in May said a Trump administration Department of Transportation rule implemented in March 2026 restricts CDL eligibility for some immigrants, including asylum seekers, refugees and DACA recipients. The Guardian said nearly 200,000 immigrant truck drivers could be affected.

A Regulatory Fight In The Background

The licensing debate is not just a labor story. It is also a legal and political fight that could affect how quickly trucking supply recovers or tightens.

AP reported on May 26 that the Supreme Court rejected Florida's bid to sue California and Washington over commercial driver licenses issued to some immigrant truckers. AP also reported that a federal appeals court blocked a Trump administration proposal that would have further restricted immigrant eligibility for CDLs.

That leaves the market with competing forces: stronger trucking prices on one side, and a contested regulatory environment on the other. For shippers, the practical result is more uncertainty about trucking capacity and costs.

The current WSJ reporting attributes some of the cost pressure to the federal crackdown on foreign drivers, but the broader policy record shows that the issue is still being challenged in court and by opponents who argue the restrictions are too broad.

What Comes Next

The key question is whether the shift back to rail is temporary or the start of a more durable change in freight mix.

If truck rates stay elevated, intermodal could keep gaining share. If prices ease again, some shippers may move freight back toward trucking for speed and flexibility.

The next signs will come from weekly rail traffic data and from company updates. Earnings and operating results from J.B. Hunt, Schneider National and major railroads should show whether intermodal demand keeps strengthening beyond May.

Railroads also face a test of capacity and service. If more shippers move freight back to rail, the network will need to handle the extra volume without sacrificing reliability.

For now, the freight market appears to be in transition: trucking is getting pricier, rail is regaining attention, and shippers are testing whether the savings are worth the extra complexity.