The freight market is moving into a new phase—but not because shipment volumes are surging.

Demand remains relatively soft, with June shipment activity declining 4.1% year over year and 3.1% from May. At the same time, transportation expenditures increased more than 11% from last year, while truckload linehaul rates rose 5.5%.

That widening gap between freight volume and transportation spending tells the real story: shippers are paying more to move fewer shipments because the available capacity base has become smaller and more expensive to operate.

Demand Has Stabilized, Not Recovered

June reversed much of the shipment growth accumulated earlier in 2026. Even after accounting for normal seasonality, shipment activity declined nearly 3% from May.

Some areas of the economy are performing better than others. Heavier industrial freight has remained comparatively resilient, while investments in power generation, data centers and related equipment are creating pockets of growth. Import and intermodal volumes have also improved.

However, broader truckload demand remains muted. Shippers are generally replenishing inventory at approximately the same pace that products are being sold rather than beginning a large-scale restocking cycle.

Housing-related freight, recreational vehicles, warehouse equipment and several consumer-discretionary categories also remain well below historical norms.

The freight market appears to have established a demand floor, but a broad volume recovery has not yet arrived.

Capacity Is Driving the Market

Although shipment volumes remain soft, available truck capacity has declined considerably.

The number of active carriers has returned closer to its historical trend, removing much of the excess capacity created during the pandemic. The Class 8 tractor population is also below last year, and the average age of the existing fleet has increased.

While equipment orders have recently improved, much of that activity appears to be replacement-focused. Carriers are replacing aging tractors or purchasing equipment ahead of anticipated cost increases—not aggressively expanding their fleets.

Driver availability is creating another constraint. Carriers have increased compensation to attract and retain qualified drivers, contributing to a higher operating-cost floor. Insurance, maintenance, equipment and fuel costs are adding further pressure.

After an extended period of weak profitability, carriers remain focused on utilization, network balance and margin recovery. Higher rates are not immediately translating into widespread fleet expansion.

As a result, the market does not need a major demand increase to remain tight. The usable capacity base is already constrained.

Seasonal Rate Relief Should Not Be Mistaken for a Loose Market

Dry van spot rates have started to ease as freight activity normalizes following the Independence Day period. However, the broader comparisons remain historically strong.

Dry van linehaul rates recently averaged approximately $2.38 per mile—nearly 46% higher than last year and 33% above the nine-year seasonal average.

Load postings remained almost 29% above last year, while available equipment postings were approximately 26% lower. The dry van load-to-truck ratio was also 74% higher year over year.

Rates may continue declining modestly through the quieter portions of late summer. Current projections suggest dry van linehaul pricing could move toward $2.27 per mile by the end of August. Even at that level, rates would remain substantially above the approximately $1.65 recorded during the same period last year.

The market can become less tight without becoming loose. Seasonal cooling may reduce rates from temporary peaks, but it does not indicate that excess capacity has returned.

Contract Networks Are Beginning to Feel the Pressure

The reduction in available capacity is becoming increasingly visible within shipper routing guides.

Overall Route Guide Depth increased from 1.32 in April to 1.48 in May, reaching its highest level since 2022. This means shippers are moving further beyond their primary contracted carriers to secure coverage.

Long-haul freight has experienced the greatest disruption. Route Guide Depth for shipments traveling more than 600 miles reached 1.78—20% worse than April and 32% worse than the previous year.

Overall route-guide failures also climbed above 7%, demonstrating how quickly temporary disruptions can affect coverage when limited backup capacity is available.

The market remains highly regional and lane-specific. Capacity may still be readily available in one market while becoming difficult to secure in another. Long-haul freight, unbalanced lanes and origins with fewer carrier options face the greatest exposure.

Contract Pricing Is Following Spot Rates Higher

Spot rates normally respond first when truckload capacity tightens because they reflect the immediate cost of securing a truck. Contract pricing follows more gradually as annual bids, mini-bids and repricing events incorporate the new cost of capacity.

That process is now underway.

Dry van contract rates, including fuel, were approximately 21% higher year over year in July. Spot rates were approximately 49% higher. Contract pricing is still trailing the spot market, but nearly all surveyed transportation buyers report paying more than they did last year.

Contract rate expectations for 2026 now generally call for increases between 5% and 15%, excluding fuel.

Historical pricing from the 2025 market trough is becoming less relevant. Current capacity costs, lane balance, service requirements and the intended life of a rate must all be considered during pricing decisions.

The market appears to be correcting toward a new and higher rate floor—not experiencing a temporary disruption before returning to previous lows.

Fuel Has Improved, but Volatility Remains

Diesel prices provided some relief in June, declining from an average of approximately $5.60 per gallon in May to $5.02. By early July, diesel had fallen further to around $4.58 per gallon.

That decline is meaningful, especially for smaller carriers and fleets with substantial spot-market exposure. However, diesel remains well above last year, and refined-product inventories continue to create uncertainty.

Fuel affects the freight market in two ways. It directly increases the cost of operating a truck, and prolonged increases can accelerate carrier exits when smaller fleets lack the cash flow or surcharge protection needed to absorb the added expense.

Lower fuel prices should provide near-term margin relief, but they have not restored the operating environment that existed before the 2026 increase. Another fuel spike could place renewed pressure on carrier supply and quickly push spot rates higher.

Planning for the Rest of 2026

Some seasonal easing is likely through late summer, but truckload rates are expected to remain well above both last year and longer-term seasonal averages.

Contract pricing will continue adjusting as new bids and repricing events reflect the current cost of capacity. Long-haul lanes, tight origin markets, holidays and severe weather will remain especially vulnerable to disruption.

Shippers can reduce their exposure by providing earlier visibility, allowing adequate lead time and identifying difficult lanes before service failures occur. Intermodal or LTL conversions may also provide alternatives when shipment characteristics and transit requirements allow.

Most importantly, temporary rate relief should not be interpreted as a full market reset.

The freight market has tightened without a demand boom. Available capacity is now limited enough that even modest demand can support higher rates—and any meaningful disruption could move the market quickly.

Bison Transport

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