US Logistics Costs Rise as Fuel Prices and Capacity Constraints Tighten Supply Chains

US supply chain costs are climbing as higher fuel prices and tighter transportation capacity offset weak freight demand, according to ITS Logistics’ June Supply Chain Report. Rising fuel costs remain the main inflation driver, while stricter regulations and enforcement have reduced trucking capacity, pushing freight rates to record highs. Warehousing expenses are also increasing despite stable inventory levels, reflecting higher storage costs rather than larger stockpiles. Parcel carriers UPS and FedEx continue restructuring their networks to improve profitability, potentially increasing shipping costs. ITS advises shippers to diversify carriers, optimize inventory locations, and adopt flexible logistics strategies to better manage rising transportation expenses.