Trucking Costs Are Stabilizing — But Relief May Be Limited

Don’t count on the freight market to solve your margin problem.

Domestic trucking costs have moderated compared to recent years, providing some relief to retail and CPG operators. However, companies expecting sustained or significant rate declines may be disappointed. While diesel prices have stabilized and freight demand has softened in certain markets, structural cost pressures — including persistent driver shortages, rising carrier insurance costs, and increasing regulatory requirements — continue to support elevated pricing floors.

Many small and mid-sized operators underestimate how directly sensitive their income statement is to trucking expense. Domestic transportation affects inbound inventory movement from ports and suppliers, replenishment transfers between distribution centers and stores, and final-mile delivery to customers. Small increases in per-mile rates or fuel surcharges can quietly compound into meaningful margin erosion over the course of a fiscal year.

As a practical example, a retailer spending $1 million annually on trucking that experiences a 5% rate increase absorbs an additional $50,000 in operating expense. For a business operating with 8% to 12% EBITDA margins, that figure can represent a meaningful percentage of total operating profit — particularly when compounded across multiple cost lines.

Operators should pay close attention to accessorial charges, including fuel surcharges, detention fees, liftgate charges, and residential delivery premiums. Finance teams should regularly benchmark freight costs as a percentage of net revenue and evaluate opportunities for route optimization, shipment consolidation, and improved warehouse positioning. Businesses with fragmented shipping networks often carry significant and addressable inefficiency.

Bottom Line: Trucking costs may be stabilizing, but transportation remains a meaningful and ongoing margin pressure for retail and CPG operators.