DAT reported that U.S. spot truckload linehaul rates in August were more than 30% higher year over year for dry van, refrigerated, and flatbed equipment. Diesel prices also climbed to $5.65 a gallon this summer, up from $3.71 the year before. These rising costs are leading many shippers to shift some freight from highways to rail. Still, intermodal isn’t a blanket fix for high trucking costs. It works well on some routes but not so much on others, and the difference depends on a few practical checks you can apply to your own freight.

Start With the Miles

Intermodal can save money, but not for every shipment. That’s why lane distance should be your first consideration. Rail usually becomes cost-effective at about 500 to 550 miles and stays that way for longer distances. If your route is under 500 miles and you need drayage trucks at both ends, extra costs and added time from terminal handling can erase any savings. A 300-mile route between cities with close rail ramps might work, but if drayage adds 60 miles on each side, it probably won’t.

Can You Give the Freight an Extra Day?

In the first half of 2026, intermodal trains averaged 30.3 miles per hour. That’s just the moving speed. When you include pickup drayage, terminal processing, the train trip, and delivery drayage, most intermodal shipments take one to two days longer than a truck driver would for the same route.

That extra transit time matters for some shipments but not all. Intermodal works well for regular replenishment freight with a few days of safety stock at the destination. So are products with weekly delivery windows. Expedited shipping orders, tight appointments, or anything customers are waiting for should stay on a truck. Forcing urgent freight onto rail to save money can cause service failures that cost more in the end.

Look Past the Linehaul Rate

A rail quote that’s $400 cheaper than truckload can lose its edge quickly once you add drayage charges, chassis fees, container per diem, and detention if the terminal is slow. Rail fuel surcharges are different as well. Intermodal usually charges a percentage of linehaul, while truck surcharges are per mile. Mixing up these formats in your spreadsheet can make intermodal look worse on some routes and better on others.

Drayage is currently the main challenge. Shippers are usually disappointed with intermodal because of drayage issues like missed pickups, rejected tenders, and slow container releases. Tender acceptance rates also dropped significantly at several major providers. If drayage capacity is tight at your origin or destination, keep that in mind before committing volume.

Capacity Is Tightening

When comparing rates, shippers often miss that Union Pacific and other major railroads prioritize contract customers, and new contract space from California, Texas, Chicago, and Salt Lake City likely won’t be available until early 2027. That means if you wait for truck rates to go even higher, you might find intermodal space already taken. It’s a good idea to secure contract commitments now on the lanes where rail fits your needs.

A Mixed Approach Usually Works

Most shippers who use intermodal successfully don’t rely only on rail. They put steady, long-haul freight on intermodal and keep truckload capacity for surges, short trips, and urgent orders. ACT Research says the U.S. trucking driver shortage has returned for the first time in about three and a half years, so truckload capacity will likely remain tight. Using both modes in your network gives you flexibility when one option is limited.

How EFS Helps You Pick the Right Mode

Choosing between rail and truck is more than just looking at rates. You make the decision for each lane based on distance, transit time, service reliability, and capacity trends. Entourage Freight Solutions partners with more than 4,500 dry freight carriers and 3,500 prequalified reefer carriers, offering full tracking and 24/7 operations support. This network lets EFS match each lane to the mode that best fits your freight. If you’re considering intermodal for your supply chain, contact EFS to discuss your lanes. Contact us today to get started.