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Capacity Constraints Drive Freight Rate Surge Across Trucking and Rail

Second-quarter earnings from major carriers reveal a freight market tightened by capacity limitations rather than demand weakness. Spot rates averaged $3.53 per mile against a $2.79 annual baseline, while contract rates climbed 18% year-over-year and tender rejections held steady at 15%. JB Hunt reported 19% revenue growth with intermodal volumes rising 10%. Knight-Swift exceeded estimates by more than 20%, crediting regulatory pressures that removed non-compliant capacity and drove double-digit contract rate gains. Three Class 1 railroads posted strong results: Union Pacific achieved 12% revenue growth, CSX delivered 10% growth, and Norfolk Southern reported 11% growth. Shippers increasingly shifted loads to intermodal as truckload rates climbed. The SONAR contract rate index reached 269 linehaul, representing an 18% year-over-year increase.