world-economy

Energy Costs Push Global Inflation Higher, Pressuring Freight Economics

Rising energy prices are fueling inflationary pressures across major economies, with utility costs climbing to near two-year highs. This threatens to sustain elevated transportation expenses. Flatbed spot linehaul rates averaged $2.83 per mile this week, down slightly from the prior week but remaining nearly 40 percent higher year over year. Truckload linehaul rates advanced year over year despite softening freight volumes in June, according to shipping data. Capacity constraints persist across the sector, with the July Logistics Managers' Index holding near four-year highs at 68.9, signaling tight market conditions. The combination of elevated energy costs, constrained carrier capacity, and sticky rate premiums suggests transportation expenses will remain elevated through the near term as global fuel prices continue to filter through supply chains.