May 21, 2026 in Articles
Freight Costs Surge as Supply Chains Face Fresh Strain
Persistent pressure around the Strait of Hormuz has resulted in diesel and petrochemical market instability, feeding directly into trucking rates, resin pricing, and freight operating costs. At the same time, slumping industrial demand and restructurings are forcing companies to cut jobs and close plants across the United States.
Preliminary findings from the 2026 International Roadcheck show much higher out-of-service rates across the trucking industry, which is concerning for fleet maintenance and equipment conditions given that freight markets are already volatile. There are also cost pressures in freight transportation, increasing disruptions in plastics and packaging supply chains, and labor cuts rippling through logistics and manufacturing networks.
Continue reading to find out the latest across the freight world.
Trucking Capacity Tightens, Freight Costs Rise
According to the latest Logistics Managers’ Index (LMI), U.S. freight transportation prices made a sharp jump in April to 95.0, the second-highest reading in the index’s history. The surge is being fueled by a sharp decline in available trucking capacity. Transportation capacity fell to 28.4, one of the lowest readings the LMI has ever recorded. And the gap between freight rates and available capacity widened to a record 66.6 points, a sign of a market under great pressure.
The researchers following the LMI described the current supply-driven inflation as a physical bottleneck issue rather than due to stronger consumer demand. Survey respondents expect logistics costs to continue rising over the next year, suggesting freight markets may remain bumpy well into 2027.
Diesel Shock Sends Trucking Prices Soaring Across US
New trucking pricing data from the Bureau of Labor Statistics shows how quickly fuel prices are impacting freight markets. Long-haul truckload pricing increased 11.4% in April compared to March, and less-than-truckload pricing rose 20% year over year to a record high. As of May 11, diesel prices hit $5.64 a gallon, more than 62% higher than a year ago.
Unlike trucking, intermodal rail pricing has been mostly flat, reflecting how exposed truck transportation is to diesel volatility. Shippers now say that almost every shipment includes fuel surcharges. Transportation consultants also warned that companies have few short-term options to offset the increase in fuel costs.
Freight and Manufacturing Layoffs Spread Across the US
More than 5,180 workers nationwide are being laid off as logistics, warehousing, manufacturing, and transportation companies undergo restructuring. FreshRealm filed for Chapter 11 bankruptcy after disruptions related to a 2025 listeria outbreak and said it was making the deepest cuts to date. The company said it will reduce the workforce by more than 1,000 at facilities in California, New Jersey, and Texas.
Third-party logistics providers also announced reductions related to contract losses and weaker freight demand. Automotive suppliers took a beating as the slowdown in vehicle production rippled through manufacturing networks. Adient said it would shutter a Tennessee plant, cutting 210 jobs, and Yanfeng said it would cut more than 150 jobs due to weaker automotive demand.
Plastic Packaging Supply Chains Face Growing Resin Crisis
Polyethylene and polypropylene prices have soared after disruptions to infrastructure at petrochemical plants and restrictions around the Strait of Hormuz cut off global material flows. The Middle East accounted for about 40% of global polyethylene exports last year, making the region highly vulnerable to the conflict.
Packaging companies are starting to increase prices. Emerald Packaging said it posted its largest monthly gain in company history, up 8%, and warned that resin prices are already up 115%. North America has avoided the worst shortages since polyethylene production is domestically based more on ethane and shale gas than on crude oil. Nonetheless, growing export demand and aggressive inventory buying are tightening domestic supply conditions.
Benchmark Diesel Price Barely Drops
The Department of Energy’s benchmark diesel price decreased a mere 0.1 cent a gallon, following a sharp rise the week before, suggesting the recent easing might already be turning around. However, energy traders are increasingly optimistic that tightening fuel supplies could push prices higher again.
Brent crude prices have started to rise again after a weeks-long slump, and ultra-low sulfur diesel futures also climbed. U.S. diesel inventories are at their lowest for early May in at least a decade, down 13.4% since the March start of the Iran war, and are under close watch by analysts. Traders are becoming increasingly uncertain about how far those buffers will extend as the Strait of Hormuz remains heavily disrupted and the refining markets show fresh signs of strain.
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Disclaimer: The subject matter of this newsletter is provided for informational purposes only. All data is obtained from internal and external sources believed to be true and accurate at the time of publication. APL Logistics is not responsible or liable for any inaccurate information contained herein.