Short-Haul Freight Is Growing. But It’s Just One Way to Move Smarter.

Given the state of the U.S. transportation market — characterized by record-high diesel prices and growing tender rejections — it’s safe to say most shippers are trying to drive highway miles out of their supply chains. Shorter travel distances mean lower fuel costs and fewer resource demands, including drivers that are in ever-shorter supply.

A recent analysis by FreightWaves confirms that short-haul freight grew 35% between January and September 2026. Defined as trips of under 100 miles, short-haul is the most resilient freight class in a volatile market, up 11% since September 2024. By comparison, long-haul freight has decreased by 15% in that two-year period.

FreightWaves attributes this foundational shift to a growing use of multimodal shipping strategies, noting that outbound rail traffic has grown by 6% over the past year. And, in fact, Redwood has helped our customers save millions of dollars by leveraging intermodal strategies that combine highway and rail.

But it’s important to recognize that intermodal shipping is not a one-size-fits-all answer to rising diesel costs. Shippers must consider the fact that significant time and costs are added as loads are moved between modes. And, with drayage capacity shrinking, those costs are only increasing. Intermodal shipping can be a great way to drive down highway miles, but it’s not a universal solution.

Remap Your Distribution Network — and Reap the Rewards

At Redwood, we believe a larger force is at work, as North American shippers rethink their foundational distribution networks by placing products closer to end users. This encompasses near-shore product manufacturing — for example, making products in nearby Mexico instead of far-away China. But it also means rethinking where finished inventory is stored, and how it’s moved to its final destination..

As a modern 4PL, Redwood routinely helps customers with hands-on challenges like procuring capacity, installing digital solutions, or executing shipments. But we also support customers as they tackle strategic, big-picture challenges.

As costs skyrocket, more customers are asking us, “Does my current warehousing and transportation model make sense from a financial perspective?” Based on our decades of logistics experience, full range of services, and hundreds of customer success stories, Redwood is uniquely qualified to answer that question.

What does the discovery process look like? Our Redwood Advisory experts analyze data about the customer’s distribution network, including localized demand, inventory carrying costs, lead times, service levels, and the overall transportation spend. Then our Advisory experts turn that data into actionable insights that lead to shorter hauling distances, lower costs, and greater responsiveness to changing demand.

By placing inventory more strategically, customers expect to realize shorter travel distances and lower freight costs. But they’re often surprised to discover these other benefits:

• Faster deliveries and improved service. Modern supply chains are disrupted by multiple forces, including weather, traffic, and road closures. It only makes sense that a shorter delivery route will have fewer surprises — meaning a faster, streamlined journey that maximizes customer satisfaction. Agility is the goal of modern supply chains, and a strategic network design helps achieve that objective.
• Optimized inventory management. One of shippers’ most costly mistakes is having the right inventory in the wrong place. This leads to last-minute transfers, expedited shipments, excess inventory, high capital investments, and product waste. These costs are amplified exponentially when products are far from the end users who need them. Redwood helps customers match warehousing to demand, leading to not only shorter hauls — but also more accurate inventory positioning across the distribution network.
• Lower environmental impacts. Sustainability is top-of-mind for every shipper. Redwood Advisory consultants help remove miles and emissions via short-haul transportation. But Redwood also helps make the entire reimagined distribution network more energy- and resource-efficient, for additional environmental gains.
• Greater operational efficiency. As a 4PL — and a managed warehousing and transportation provider — Redwood knows how to drive efficiency gains, in part by placing distribution hubs close to demand. But our Advisory team also considers proximity to ports, major highways, and urban centers to optimize both inbound and outbound flows.
• Streamlined reverse logistics. Product returns are an enormous and fast-growing cost center for shippers. Strategically positioning products close to demand also makes the return trip shorter and less cost-intensive.

While shortening travel distances is a great place to start, the end result of a successful network redesign is much more powerful: A more resilient supply chain, built for high speed and low cost.

Whatever the Distance, Take Redwood Along for the Ride

Rethinking your foundational distribution strategy might seem time-consuming and resource-intensive. It can seem overwhelming when you’re just trying to move products every day.

That’s why you need an experienced, focused partner like Redwood who has “been there, done that” when it comes to supply chain optimization — delivering proven results for hundreds of shippers. Instead of building internal expertise on relying on a Big Six management consulting firm — with high overhead and generalized knowledge — why not partner with a team of experienced advisors who live and breathe logistics every day?

Because Redwood Advisory begins with data, analytics, and business intelligence, you can be confident you’re moving your network in the right direction. And our experts define the payoff upfront in terms of mileage savings, cost savings, service improvements, and other KPIs. Redwood never pursues transformation for the sake of transformation — it’s always with predicted results and practical benefits in mind.

Whatever direction your network needs to move in, Redwood can get you there. Our full suite of services and solutions — including freight capacity, cross-border logistics, managed warehousing, managed transportation, and advanced technology — offers one-stop shopping, for a fast launch and customized support. Unlike many other consulting teams, we have no vested interest in selling any particular service or solution. Instead, we begin by defining a custom network model that works for your specific challenges. Then we define the best way to get there.

There’s a reason short-haul freight is a fast-growing category. But it’s just one component of driving down costs, improving service, and gaining a competitive edge — no matter what the rest of the field is doing, and no matter how the U.S. freight market evolves. Reach out to Redwood and start reimagining your distribution network today.