When Rates Are Up and Your Cash Is Still Tight. Here Is What Is Actually What Could Be Going On.

Insight summary

• •Spot freight rates in mid-2026 are about 15% higher year-over-year, but this increase is delayed in cash flow due to payment terms of 35-40 days.
• •Despite higher spot rates, operational costs such as diesel fuel, truck payments, and insurance remain unchanged or have increased.
• •The average total operating cost per mile for trucking was $2.26 in 2024, with non-fuel marginal costs at $1.78 per mile, both at record highs.
• •Truck and trailer payments increased 52.3% since 2019, reaching $0.39 per mile, while driver compensation averages $0.97 per mile.
• •The truckload sector experienced an average operating margin of negative 2.3% in 2024, indicating losses per mile.
• •Rising labor costs due to driver shortages and regulatory changes, and increasing insurance premiums driven by litigation rather than accident frequency, are major cost pressures.
• •Insurance costs vary greatly by state and remain fixed monthly expenses regardless of revenue fluctuations, with proposals to increase minimum liability insurance potentially raising costs further.