News · Insurance & risk
Diesel Cost Squeeze Hits Carrier Margins: What to Do
Diesel costs for carriers are up about 31% since July while spot rates slip. See what FreightWaves data shows and how owner-operators can respond.
Questions about how this affects your trucks? Talk to a licensed agent who ran his own authority.
What happened
FreightWaves, a trucking news site, shared new fuel data on September 19, 2026. It shows that diesel costs for carriers are cutting into what they keep from every load.
Here are the numbers. From July 5 to September 17, the retail diesel price rose about 31%. Retail is the price at the pump. The wholesale price rose more than twice as fast. Because of that, the gap between the two, called the spread, shrank by about 48%.
Since early July, the spread has averaged just over $1 a gallon. From 2022 to March 2026, it averaged about $1.25. From April to July 2026, it was above $1.50.
Big carriers feel the pressure too. J.B. Hunt, a large carrier, gave a rare warning of a 5% to 10% hit to its third-quarter earnings. It pointed to higher fuel and driver costs.
Smaller fleets face a double squeeze. In the last three months, retail diesel is up about 24%. Spot rates are down about 6%. Spot rates are what a load pays when there is no contract.
What it means for owner-operators
Diesel is one of your biggest bills. When it climbs 24% in three months and rates slip 6%, less money is left at the end of the week.
Most fuel surcharges follow the retail price. Big carriers often buy fuel at "rack plus 2%," which is the wholesale price plus 2%. That is why the gap between wholesale and retail matters for their margins.
When money gets tight, other bills feel heavier, and insurance is one of them. That is why it pays to plan before a renewal, not after it arrives.
What to do next
- Read the fuel surcharge terms in every rate confirmation. Check if it follows the retail diesel price.
- Talk to your broker or shipper about your base rate. Ask about longer contracts with fuel protection built in.
- Write down your cost per mile every week, so you see the squeeze early.
- Ask your insurance agent about your renewal date and payment options early. Read our guide to trucking insurance coverage so you know what you pay for.
- Questions about your policy? Call TCZ Insurance Agency at 956-526-6727.
Original report
Written by TCZ Insurance Agency in our own words. Read the original for the full story.