American retailers and manufacturers are rekindling their love affair with trains as trucking rates soar to four-year highs.
Companies are now opting for intermodal transport, which combines rail and trucking, to cut costs and boost supply chain reliability.
North American intermodal transports rose 6% in May to an average of 369,000 containers and trailers a week, the largest annual increase since March 2025.
Trucking rates are climbing after four years of carrier squeeze, with an exodus of carriers accelerating over the past year due to low earnings and a Trump administration crackdown on foreign drivers.
The average spot rate for U.S. intermodal was $1.16 a mile, well below the $3.05 a mile average spot rate for big rigs.
Logistics executives say investments in making intermodal transport faster and more reliable have helped shippers make the switch.
