Rising Diesel Prices: When Intermodal Freight Can Help Control Costs
Higher fuel costs are putting more pressure on freight budgets and making intermodal worth another look for long-haul shipments
Diesel prices remain a major challenge for Q4 transportation planning, even as they continue to ease from September’s record high. According to the U.S. Energy Information Administration, the national average price for on-highway diesel fell to $6.199 per gallon for the week of Oct. 5, 2026, down 18.3 cents from $6.382 the previous week. Prices are still $2.488 per gallon higher than at this time last year.
Higher diesel prices are showing up in fuel surcharges and carrier operating costs, particularly on long-haul full truckload (FTL) moves. Some fuel surcharge tables have already exceeded $1 per mile, adding more pressure to transportation budgets and making freight spend harder to forecast.
Carriers are also managing higher operating costs, which can influence pricing, equipment utilization and network decisions as Q4 volumes increase.
Gebrüder Weiss is working with customers to review FTL, less-than-truckload (LTL) and rail intermodal options based on the shipment, lane, transit requirements and cost. As over-the-road costs remain elevated, intermodal is an increasingly important option to evaluate.
When Does Intermodal Freight Make Sense?
Intermodal can be a strong option when shipment and lane characteristics support rail service.
- Intermodal should be considered when:
- Freight moves over longer distances
- Shipments follow consistent lanes and schedules
- Transit time allows for rail service
- FTL costs have increased
- Volumes are predictable enough to plan ahead
FTL remains better suited for shipments that require direct transportation, faster transit or greater scheduling flexibility. LTL may be a better fit for smaller shipments that do not require a full trailer.
Intermodal is not the right fit for every shipment. Origin and destination, rail availability, shipment characteristics and delivery requirements all need to be considered.
Three Ways to Manage Higher Freight Costs
1. Review Long-Haul Lanes for Intermodal
Start with recurring long-distance FTL lanes and compare current transportation costs with available intermodal options. Moving eligible shipments to rail intermodal can help offset higher fuel-related transportation costs.
2. Consolidate Freight Where Possible
Shipment size and timing also affect transportation spend. Combining smaller shipments can improve trailer utilization and reduce the number of individual moves.
Reviewing shipment schedules may identify opportunities to consolidate freight or choose between LTL and FTL more efficiently.
3. Look Beyond the Individual Rate
The lowest rate on a single shipment does not always produce the lowest overall transportation cost.
Routing, distribution points and inventory locations determine how many miles freight travels. Reviewing the broader network can identify unnecessary mileage and opportunities to reduce transportation costs through routing, consolidation or mode changes.
How Gebrüder Weiss Supports Intermodal and Ground Transportation
Gebrüder Weiss supports customers across North America with FTL, LTL and rail intermodal transportation. The team evaluates shipment requirements and transportation options to help customers choose the mode that best fits their cost and service needs.
For companies with broader supply chain requirements, these services can also connect with cross-border transportation, international freight and warehousing. By coordinating these services through one representative, shippers have a single point of contact across multiple transportation needs.
Review Freight Options Before Q4 Volumes Increase
Higher diesel prices make this a good time to take a closer look at transportation costs and determine whether existing shipping patterns still make sense.
Gebrüder Weiss can help identify opportunities across FTL, LTL and intermodal while balancing cost and service requirements. To discuss cost comparisons for your domestic supply chain, contact Kevin Sendre, Director of North American Land Transport FTL, or Chris Ford, Director of FTL Customer Sales.
Frequently Asked Questions About Intermodal Freight
What is intermodal freight?
Intermodal freight uses more than one mode of transportation during a shipment. In domestic North American service, freight typically moves by truck to a rail terminal, travels long distances by rail, and is delivered by truck at the destination.
Can intermodal reduce transportation costs?
It can on certain long-haul lanes. Savings depend on distance, route, shipment requirements, available capacity, FTL rates and rail pricing.
When should a shipper consider intermodal instead of FTL?
Intermodal is most relevant for longer-distance freight with predictable schedules and some transit-time flexibility. Time-sensitive shipments may be better suited for FTL.
How do diesel prices affect FTL freight costs?
Higher diesel prices can increase carrier operating costs and fuel surcharges, particularly on long-haul shipments.
Can a company use both FTL and intermodal?
Yes. Many transportation networks use multiple modes, with FTL serving time-sensitive or direct shipments and intermodal handling qualifying long-haul freight.
