Ryan Hammett: Welcome to the October edition of the C.H. Robinson Edge video. I’m Ryan Hammett, joined as always by Mat Leo. We’re going to discuss the latest developments affecting freight markets and shipper strategies. This month, we’ll focus on three topics: diesel fuel, which continues to be one of the biggest transportation cost stories of 2026 and likely will remain so into 2027; becoming a shipper of choice as capacity tightens; and ocean capacity and congestion, including the return of more container delivers to the Suez Canal.

Mat Leo: It’s fitting to start with diesel because it has been in the news a lot lately. The U.S. national average diesel price reached a record high of $6.53 per gallon in the third week of September, nearly 90% higher than in January. Diesel has been increasing much faster than crude oil because the global refining system is extremely tight, distillate inventories remain low, global diesel production has been constrained and strong U.S. export demand continues to compete for available supply. Even when crude pricing moderates, diesel does not necessarily follow it one for one.

Ryan Hammett: That matters because shippers are not buying barrels of crude oil; they’re paying fuel surcharges. The impact on freight rates has become substantial.

Mat Leo: We’ve recently seen periods when linehaul rates were flat or declining while all-in costs were still increasing because of fuel. That’s why shippers should separate linehaul and fuel costs to understand the pricing picture clearly.

Ryan Hammett: There have also been headlines suggesting possible diesel-cost relief. One announcement involved red-dyed diesel, which is intended primarily for off-road uses such as farming and agriculture and is exempt from certain taxes, saving approximately 24 cents per gallon. Its practical use in trucking is limited: it remains restricted for highway use in most states, availability through truck-stop networks is limited, long-haul trucks routinely cross state lines and carriers must consider residual dye in their fuel systems. We do not expect this to materially affect diesel prices.

Mat Leo: Another recent headline involved an U.S. deal to source diesel from Russia. The announcement stated that 300,000 tons would be supplied immediately, with more to follow. That is equivalent to about 2.25 million barrels, while the United States consumes approximately 3.7 million barrels per day. Transporting and distributing the diesel to U.S. fuel stations will also take time, so “immediate” should not be confused with “instant.” Diesel prices have come down only minimally and they remain relatively high.

Ryan Hammett: That leads us to shipper of choice. The phrase has been around transportation for a long time, but it becomes more important when capacity tightens. What actually makes a shipper a shipper of choice?

Mat Leo: It does not simply mean paying carriers more. It means providing a desirable overall experience for drivers and carriers. Much of it comes down to how efficiently and predictably a carrier can move your freight.

Ryan Hammett: Shippers can influence this before freight is tendered. Is volume reasonably predictable? Are providers receiving enough lead time? Are the right carriers matched with the right lanes and freight characteristics? Operational factors also matter after the truck arrives, especially dwell time. Time spent waiting at a facility reduces driver productivity and can interfere with the next load. High fuel costs make inefficient miles and time even more expensive.

Mat Leo: Carrier economics do not stop when a truck arrives at a facility. If a driver waits hours to load or unload, the equipment is not generating revenue. If freight is tendered at the last minute, the carrier has less opportunity to position equipment efficiently. Highly unpredictable delivery patterns also make it more difficult to build a network around the freight.

Ryan Hammett: We boil it down to three things: reduce waste, respect drivers and plan effectively. Start by making check-in, loading and unloading more efficient. Measure dwell time so you can improve it and monitor progress.

Mat Leo: Respect also matters. We once saw an owner-operator repeatedly choose freight that paid $150 less than a nearly identical load because the preferred shipper provided free hot dogs to drivers. That does not mean hot dogs will reduce freight rates by $150 per load, but it shows that drivers value a positive experience and want to feel like valued partners.

Ryan Hammett: Planning is just as important. Carriers operate most efficiently when they have enough time to position capacity. Look at dwell time, tender lead time and whether awarded carriers fit the characteristics of the freight. Ask providers what makes your freight attractive—or not. Becoming a shipper of choice is something you build operationally before capacity tightens, so start planning for 2027 now.

Mat Leo: Let’s finish with ocean freight. On paper, there appears to be plenty of vessel capacity, but congestion across multiple parts of the global network means that capacity is not always usable.

Ryan Hammett: Across Asian transshipment hubs, a series of typhoons caused unplanned congestion, contributing to port omissions, transshipment changes and backlogs. At Los Angeles and Long Beach, high import volumes and railcar shortages are extending dwell and putting more pressure on inland recovery. In Northern Europe, port congestion, low Rhine River water levels and labour disruptions are affecting barge capacity. Although all three regions show congestion, the underlying causes differ.

Mat Leo: Getting a vessel to the destination port is only one part of the move. A container can cross the ocean on schedule and still be delayed while entering the terminal, unloading or moving into the inland network. Gateway risk increasingly depends on what happens after the vessel arrives. Shippers should consider rail and chassis availability, terminal access, transshipment connections and inland recovery options. When ships wait longer in ports and equipment cycles more slowly, effective capacity is removed even though the physical ships and containers still exist.

Ryan Hammett: We’re also starting to see more ships move through the Suez Canal. The important point is not only the effect on transit time, but also the potential improvement in network efficiency. Routing through the Suez can significantly shorten Asia-to-Europe voyages compared with sailing around the Cape of Good Hope. That means fewer sailing days, less fuel consumed and faster equipment cycles. With high fuel costs and congestion already reducing effective global capacity, the economic value of a shorter route becomes more significant. Fuel costs, congestion, security risk and routing economics are all influencing how carriers deploy their networks. Shippers should ask not only whether ocean capacity is available, but also how it is routed, what happens when freight reaches its destination and what recovery options exist if plans change.

Mat Leo: To recap: with diesel, do not focus exclusively on crude oil headlines. Refining and distillate markets are major factors in what transportation providers actually pay. With truckload, pay attention to freight quality and carrier relationships so you can become a shipper of choice. And with ocean freight, capacity on paper does not always equal capacity you can use, especially while congestion and routing strategies continue to change.

Ryan Hammett: Continue working with your C.H. Robinson team to understand how these changes apply to your network. Thank you for watching and remember: C.H. Robinson brings you the edge you need to manage your transportation strategy successfully. We’ll see you next month.