Expect high freight costs to continue through winter
Freight costs are expected to remain elevated through winter despite recent drops in crude oil prices.
Researchers at the Steiner Consulting Group say tight inventories of diesel and heating oil will continue to impact prices. Data from the Bureau of Labor and Statistics show September freight PPI up 20 percent compared to last year with earlier costs up nearly 40 percent on the year.
Right now, freight costs are up nearly 50 percent compared to before the pandemic. Diesel and heating oil inventories are currently sitting just above 100 million barrels, which is well below the five-year average.