Trucking Costs Rise As Freight Margins Remain Thin

Operating costs reached a record $2.34 per mile in 2025 as carriers faced higher expenses and thin profit margins.

WASHINGTON, D.C. (RFD News) — Trucking costs reached a record $2.34 per mile in 2025, increasing transportation pressure across agricultural supply chains already facing high fuel, equipment, and labor costs. The American Transportation Research Institute said operating costs increased 3.4% from the previous year.

Costs excluding fuel climbed more than 4%, led by higher tolls, repairs, driver benefits and tires. First-quarter 2026 data indicate many of those cost pressures are continuing.

Carriers responded by reducing truck capacity, leaving more equipment idle and cutting non-driver staffing. Average truck age also increased as fleets worked to limit capital spending during weak freight conditions.

Profitability remained thin despite those reductions. Truckload and refrigerated operating margins stayed below 1%, while flatbed carriers recorded an average operating loss.

For agriculture, financially stressed carriers could mean less available capacity and continued freight-rate pressure when seasonal demand accelerates around harvest, livestock movement and input deliveries.

Farm-Level Takeaway: Rising trucking costs and weak carrier profitability could keep agricultural freight expensive even as the broader freight market improves.
Tony St. James, RFD News Markets Specialist

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

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