Diesel Prices Could Push More Capacity Out in Q4

Diesel prices could push more capacity out in Q4 — and that may be the real freight market story. RXO’s Corey Klujsza breaks down why spot demand looks softer, why contract routing guides are shifting, and why carrier costs still leave the market vulnerable to higher rate volatility. This FreightWaves Today segment digs into consumer demand, food and bev seasonality, linehaul pressure and what rising fuel means for truckload capacity heading into peak season. Spot linehaul rates are running more than 40% above year-ago levels, yet the average carrier’s operating margin remains far below where it stood at the peak of the last upcycle — a gap that Corey Klujsza, VP of Pricing and Procurement at RXO, says could push more trucks out of the market heading into the fourth quarter. Rising diesel costs are simultaneously squeezing consumers and eroding carrier profitability, setting up a supply-side catalyst even if demand stays muted.