Freight Capacity Hits 10-Year Low as Prices Surge

S. 9 point monthly decline and the second-steepest drop in the dataset's history. Simultaneously, transportation pricing surged to 95, marking the second-fastest growth rate on record. The 67-point spread between capacity and pricing indices represents an unprecedented divergence, reflecting a market experiencing simultaneous capacity collapse and cost explosion.

Geopolitical and energy-market disruptions are amplifying underlying supply chain stress. The closure of the Strait of Hormuz has spiked fuel costs, which carriers are passing through to shippers while consolidating loads to manage profitability. Large enterprises and upstream supply chain participants (manufacturers, wholesalers) are absorbing disproportionate impact as they stockpile inventory to offset elevated freight costs. Warehouse capacity has also tightened, with utilization hitting its highest level since November 2021, driving warehouse pricing into significant expansion territory.

Logistics professionals must prepare for sustained pressure over the next 12 months. 9. This structural tightness, paired with supply-driven inflation, poses risks for cost management and may fuel broader economic inflation if logistics premiums propagate through consumer pricing.