05/19/2026
May 19, 2026
The Freight Industry Is Paying the Price for Unsustainable Rates
At Cadillac Freight, we’ve lived through the reality of this freight market collapse and the consequences of years of unsustainable pricing pressure. Over the past several years, more than 60% of the owner-operators and small carriers we previously worked with have either folded, parked their trucks, sold their equipment, or permanently exited the industry altogether.
What many outside the trucking industry fail to understand is this:
Trucking is not just about moving freight — it is a business with massive operating costs that continue rising while many traditional shippers still expect pricing from a completely different market cycle.
Today, the average diesel price in the United States is hovering around $5.64 per gallon. A typical Class 8 truck averages roughly 6 miles per gallon under normal operating conditions.
That means fuel alone is costing carriers approximately $0.94 per mile just to operate.
A truck averaging 2,500 miles per week is spending nearly $2,350 weekly on diesel fuel alone — before paying for:
• Truck and trailer payments
• Commercial insurance
• Maintenance and repairs
• Tires and roadside breakdowns
• DEF fluid
• Licensing and permits
• Tolls
• ELD and compliance systems
• Factoring fees
• Taxes
• Parking
• Food on the road
• Health insurance
• Housing and family expenses back home
Many owner-operators today are carrying:
• $2,500–$4,000 monthly truck payments
• $1,500–$3,000 monthly insurance premiums
• Rising maintenance expenses due to inflation and parts shortages
• Increased financing costs from higher interest rates
At the same time, the average American cost of living continues climbing:
• Housing costs remain elevated
• Grocery prices continue rising
• Healthcare expenses are increasing
• Everyday necessities cost significantly more than they did just a few years ago
Yet despite all of these realities, many shippers continue trying to push freight at rates that barely cover fuel costs, much less allow carriers to remain profitable. For years, carriers were forced into survival mode. Trucks accepted cheap freight simply to keep moving and avoid sitting idle. The market created a race to the bottom where many owner-operators operated on razor-thin margins just trying to make it to the next week.
Now the industry is seeing the consequences. Thousands of trucks have left the road permanently. The carriers and drivers who survived are no longer willing to haul freight at unsustainable rates. They understand their value because the market has fundamentally changed. Capacity has tightened dramatically, and in many lanes today there are more loads available than trucks capable of moving them reliably.
The balance of power is shifting.
For years, the market heavily favored shippers. Brokers and carriers were expected to absorb rising costs while competing aggressively for freight. But after years of carrier shutdowns, reliable trucks have become increasingly difficult to secure.
At Cadillac Freight, we are seeing firsthand that:
• Experienced carriers are becoming more selective
• Drivers are refusing low-paying freight
• Service expectations remain high while rates lag behind operational reality
• Capacity shortages are becoming more common across critical lanes
This is no longer simply a pricing issue — it is a sustainability issue for the entire transportation industry.
Without profitable carriers:
• Freight does not move
• Supply chains fail
• Delivery times increase
• Costs eventually rise for everyone
The trucking industry carried America through supply chain crises, inflation spikes, economic instability, and unprecedented market disruptions. But independent drivers and small fleets cannot continue absorbing rising operational costs while being expected to operate at break-even levels. The market is now correcting itself. As capacity tightens and fewer trucks remain available, the industry is entering a phase where drivers and carriers once again hold leverage. Relationships, fair pricing, transparency, and long-term partnerships are becoming more valuable than simply chasing the cheapest truck available.
The reality many are finally beginning to understand is simple:
You cannot underpay the people moving America’s freight for years and expect the industry to survive unchanged.
