U.S. diesel prices surged 19.8 cents per gallon in a single week, reaching $5.652 according to the U.S. Energy Information Administration — approaching all-time high territory. Diesel is the lifeblood of produce transportation, from farm pickups to long-haul refrigerated freight to final-mile delivery.
A jump of nearly 20 cents in one week is significant. Freight costs are already a major pain point in the produce industry, and elevated diesel prices translate quickly into higher hauling rates, particularly for smaller carriers with thinner margins. This layered on top of already-elevated container rates and the tariff-related logistics disruptions from earlier this season creates a compounding cost squeeze.
Buyers and category managers should anticipate freight surcharge conversations from their supply partners in the near term. Sellers pricing outbound loads this week will be working off materially higher fuel costs than even a few days ago.