What’s driving freight costs higher — fuel, tight capacity, inflation, or all of the above?
On this episode of Freightonomics, Zach Strickland and economist D.J. Donahue break down the latest economic data and what it means for transportation, consumers and the broader freight economy.
Producer prices are rising, with energy playing a major role. Diesel prices have surged, putting additional pressure on trucking and transportation costs, while elevated tender rejection rates point to a freight market that remains tight. The show also examines consumer credit, historically high credit card rates and what slowing credit growth could signal for consumer health and future freight demand.
The conversation then turns to trade policy and the latest tensions with Canada. Zach and D.J. examine proposed restrictions on Canadian imports, the potential economic impact and why some of the targeted trade flows may have a much smaller effect on overall freight volumes than the headlines suggest.
In the second half, Thomas Wasson joins Zach to explore the changing North American freight landscape. They discuss Mexican cross-border trucking, cabotage enforcement, falling Laredo freight volumes, shifting Mexico trade flows and the growing influence of data-center construction on freight demand. Data-center investment is generating demand for electronics, steel, concrete and open-deck capacity even as traditional consumer demand remains relatively muted.
The episode also dives into ocean freight rates, fuel costs, congestion and the impact of weather on trans-Pacific shipping. Finally, Zach and Thomas examine changing FMCSA data and what it really tells us about trucking capacity.
The bottom line? Capacity is not meaningfully growing yet, and the industry may be moving toward a smaller, more closely vetted and safer carrier base — but at a higher price.
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