Transportation Prices Hit Second-Highest Ever in April

6-point surge in transportation prices during April, marking the second-highest reading in the index's history. This sharp increase reflects mounting pressures across multiple transportation modes—ocean freight, air cargo, and ground logistics—signaling a critical inflection point for supply chain professionals managing cost and service levels. This price escalation indicates structural tightness in transportation capacity relative to demand.

Whether driven by fuel costs, labor constraints, equipment availability, or seasonal demand patterns, the near-record levels suggest that carrier pricing power remains elevated. Supply chain teams relying on fixed-price contracts may face margin compression, while those managing variable-cost arrangements should brace for immediate budget impacts. The strategic implication is clear: transportation cost management must move from tactical execution to strategic foresight.

Procurement teams should accelerate contract negotiations before Q2 closes, diversify carrier relationships to prevent lock-in, and model scenarios where rates remain elevated through the third quarter. Additionally, operations should review shipment consolidation strategies, mode mix decisions, and origin-destination planning to optimize total landed cost in a high-price-environment.