Kelly Clarkson walks into a toy store in Brooklyn…
You probably know the rest of the story by now, but if you don’t, be thankful.
I’m of two minds on this one.
On the one hand, with everything serious happening in the world today, why are we spending so much time and mental energy on an incident involving a mechanical toy bird?
On the other hand, wouldn’t it be wonderful to live in a world where the worst thing that happens, the only news worth reporting, is a dispute between a shop owner and a customer over a toy bird?
If only.
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In other news, here’s what caught my attention this week in the supply chain and logistics realm:
- Lutnick Throws the Future of U.S.-Mexico Trade Talks Into Further Doubt (WSJ – sub. req’d)
- Diesel futures jump, signaling higher prices to come despite Trump’s Russia deal (NBC News)
- J.B. Hunt Turns to Price Increases as Costs Rise (WSJ – sub. req’d)
- Port Of Los Angeles Sets All-Time Monthly Cargo Record
- Pilot and Tesla open first heavy-duty megacharger site for electric semis (CCJ)
- SAP Expands Joule Assistants and Agents to Advance Autonomous Supply Chain Management
- Transportation Insight Launches TI Infinity, an AI-Powered Decision Intelligence Platform
- Kodiak AI and Charger USA Launch Autonomous Trucking Between Dallas and Laredo
- FMCSA approves warning beacons for autonomous trucks (TransportTopics)
- NYC offers $5M to move deliveries away from peak hours (SupplyChainDive)
- Masked Thieves in Italy Make Off With $5.6 Million of High-End Wine (WSJ – sub. req’d)
- Cass Transportation Index Report September 2026
It’s Not Just Diesel: Why Trucking Costs Keep Rising
The rise in diesel prices continues to dominate the headlines. As reported by Steve Kopack at NBC News, “U.S. diesel futures were up 5% by midday [on October 13] to their highest level in weeks…A move higher in futures markets typically signals that prices will climb in the coming days.”
But diesel isn’t the only thing putting upward pressure on transportation costs. Carriers are facing rising costs across their operations, prompting them to seek higher rates. For example, J.B. Hunt has encountered “a confluence of higher fuel costs, claims and medical costs, and investments in new drivers to meet demand, which together impacted operating income by more than $50 million from the second quarter to the third quarter,” according to an article by Elias Schisgall in The Wall Street Journal. “As a result, J.B. Hunt is turning to price increases to recoup costs, executives said on an [October 15] analyst call.”
J.B. Hunt is not alone in experiencing these cost increases. According to a July 2026 report published by the American Transportation Research Institute (ATRI) — “2026 Analysis of the Operational Costs of Trucking” — the average cost of operating a truck increased 3.4% in 2025 to a record $2.34 per mile. Excluding fuel, costs increased 4.2%, outpacing general inflation. Driver benefits increased 6.6%, while insurance premiums rose 3.9%.
Another ATRI report published in May 2026, “Trucking’s Rising Insurance Costs: Issues and Opportunities,” found that liability insurance premiums increased 18.6% between 2021 and 2024, while liability losses increased 33.1% per mile, even as truck-involved crash rates declined. Add in the rising costs of recruiting, training, and onboarding drivers, and it’s clear that trucking companies continue to face significant cost pressures, even as freight market conditions improve.
What does this all mean for shippers? They should prepare for higher transportation rates in 2027, potentially significantly higher in some segments.
C.H. Robinson, for example, “forecasts the cost per mile for dry van truckload in 2027 to increase approximately 10% year over year compared to 2026. The forecast reflects a market where freight demand remains relatively muted in the near term, but transportation supply continues to contract. As capacity exits the market, costs are expected to increase steadily through 2027, even without a significant change in underlying freight demand.”
Simply put, the continued contraction in capacity is shifting pricing leverage back toward carriers.
Yes, the tide has turned in the freight transportation market, and shippers should prepare for some rougher waters ahead.
And with that, have a meaningful weekend.
Song of the Week: “Birdhouse In Your Soul” by They Might Be Giants
