The Freight Market Is Tightening:                         

What ALG Customers Need to Know

After several years of favorable freight conditions for shippers, the transportation market is shifting. A shrinking driver pool, continued carrier exits, regulatory enforcement and rising operating expenses are reducing available truck capacity and putting upward pressure on transportation costs.

For ALG customers, the message is simple: capacity is becoming tighter, and transportation costs are moving higher.

A Supply Problem - Not a Freight Boom

What makes the current market particularly noteworthy is that tightening capacity is not being driven primarily by a surge in freight volume.

Overall freight demand remains relatively soft, yet available trucking capacity continues to contract. Carriers have exited the market after several challenging years, while regulatory enforcement and driver qualification requirements are further reducing the available driver pool.

The result is fewer trucks competing for freight - and a market that can tighten quickly when demand increases, even temporarily.

Driver Availability Is Adding Pressure

The trucking industry continues to face challenges recruiting and retaining qualified drivers. At the same time, increased enforcement of licensing, safety and driver eligibility requirements has removed additional capacity from the market.

Carriers are responding by increasing compensation to attract and retain qualified drivers. Those higher labor costs ultimately become part of the transportation rate.

Driver availability is especially important because adding equipment alone does not create capacity. A truck without a qualified driver is not available capacity.

Rates Are Already Responding

The effects are becoming visible in current pricing.

Linehaul rates in late August were more than 30% higher than in the same period last year, according to DAT Freight & Analytics. Available truck postings have also declined significantly compared with 2025, another indication of tightening capacity.

Contract rates are moving higher as well, meaning the pressure is no longer limited to last-minute or spot-market shipments.

At the same time, carriers continue to absorb higher costs for insurance, equipment, maintenance, financing, wages and regulatory compliance. These pressures make it increasingly difficult for carriers to maintain the aggressive pricing that characterized the softer freight market of the past several years.

What This Means for ALG Customers

We do not expect transportation capacity to disappear overnight, but customers should be prepared for a market where price, lead time and flexibility become increasingly important.

As capacity tightens, we recommend:

• Providing as much advance notice as possible for scheduled shipments.
• Avoiding last-minute changes to pick up dates and appointment requirements when possible.
• Building additional flexibility into time-sensitive mailing and distribution schedules.
• Budgeting for transportation costs that may be higher than those experienced in 2024 and 2025.
• Working with ALG early on large mailings, campaigns or projects requiring significant truckload capacity.

Customers with highly time-sensitive freight should be especially proactive around holidays, month- and quarter-end periods, severe weather events and other periods when available capacity can tighten quickly.

Looking Ahead

The transportation market remains fluid. Freight volumes themselves are not exceptionally strong, which could provide some short-term relief. However, the underlying capacity issues are unlikely to disappear quickly.

Industry analysts continue to point to a supply-driven market correction, with fewer carriers and drivers supporting the nation's freight network. If freight demand strengthens while capacity remains constrained, additional upward rate pressure could develop quickly.

ALG Worldwide Logistics is actively monitoring capacity, carrier availability, and transportation costs across our network. Our goal is to keep customers informed of changing market conditions while working with our carrier partners to secure reliable capacity and competitive pricing.

ALG Worldwide Logistics
Connecting your mail and freight to the right capacity - at the right time.