THE DAILY

Wednesday, March 18, 2026

The five minutes that makes you the most informed person in freight today

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The Daily

Diesel benchmark crosses $5 for first time since 2022

Diesel is at $5 a gallon for the first time in three years, and the run that got it there shows no sign of stopping.

The Department of Energy/EIA weekly benchmark hit $5.071/g on Tuesday — the 33rd time in history the average has cleared that threshold, and the first time since 2022. All 32 previous instances came during that single year. The 21.2-cent jump from last week’s $4.859/g marked the ninth consecutive week of increases. Since the run began on Feb. 27 at $3.459/g — the last reporting date before coordinated U.S. and Israeli strikes on Iran — the benchmark has climbed $1.612/g. The AAA daily retail average was tracking even higher Tuesday morning, at $5.044/g, per FreightWaves reporter John Kingston.

The mechanism is the Strait of Hormuz. Iran effectively closed the strait to crude exports after the conflict began, and the downstream effect on global production has been severe. Rystad Energy estimated the Middle East has shed more than 12 million barrels per day of output — roughly 7% of global petroleum liquids demand. The bypass infrastructure that was supposed to cushion this is under strain. The OPIS energy news service, citing Rystad, described the remaining 14 million b/d of Middle East production as "fragile." "About 1.5 million b/d from Kuwait and Iraq is holding only because domestic refineries are still running; as storage fills, output will likely be cut further," OPIS reported. Iraq’s overall production has collapsed from 4.2 million b/d to roughly 1.5 million to 1.6 million b/d, with most of that consumed domestically.

Futures markets are moving accordingly. Ultra low sulfur diesel on the CME settled at $2.596/g on Feb. 27. The highest settlement since the war began hit $4.0147/g last Friday. On Tuesday morning, ULSD was up 20.44 cents/g to $4.0419/g — a 5.33% intraday move — after a brief Monday selloff was wiped out almost entirely by mid-morning. Retail prices have tracked the futures surge closely: the $1.174/g increase at the pump over the past two weeks has captured most of the $1.4187/g gain in futures over the same period.

So What? Most fuel surcharge programs key off the DOE/EIA weekly benchmark — the same number that just cleared $5. Surcharge tables written at 2024 or early 2025 price assumptions are already out of range for many carriers. Those on cost-plus contracts may have partial protection; fleets on fixed-rate agreements are absorbing a cost they didn’t price. If your surcharge table tops out below $4.75, it needs revision before Monday’s next print. Shippers should model diesel at $5-plus through at least Q2: nine straight weeks of increases tied to a geopolitical conflict with no resolution timeline is not a temporary spike. It is the new operating baseline until the Strait of Hormuz reopens.

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Top Stories

USPS chief tells Congress the postal service has less than 12 months of cash

Postmaster General David Steiner told a House Oversight subcommittee Tuesday that the U.S. Postal Service will run out of cash and be unable to pay employees, vendors, or deliver mail within 12 months unless Congress raises its $15 billion statutory debt limit. Mail volume has fallen 49% since 2007, with First-class mail down 56%. Under the current universal service mandate, 71% of delivery routes lose money and 58% of post offices don’t cover their operating costs. Steiner is asking lawmakers to choose a direction: cut services, provide subsidies, or lift the regulatory constraints that prevent the agency from pricing competitively. He’s pushing for a stamp price of 90 to 95 cents and a debt ceiling of $30 billion to $40 billion. "There is one thing we can’t do, and that is maintain the status quo," Steiner said.

So What? USPS is the last-mile delivery partner for FedEx, UPS, and Amazon in large portions of the country, especially rural markets where no private alternative exists. A financial collapse or forced service reduction ripples across the parcel network. This hearing set the political clock. Watch for committee markup on a debt-limit increase and any signals from House leadership on floor scheduling.

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Wisconsin’s Sparhawk Trucking, a 47-year-old family carrier, files for Chapter 11

Family-owned Sparhawk Trucking of Wisconsin Rapids filed for Chapter 11 bankruptcy protection Tuesday, along with three related entities: Sparhawk Truck and Trailer, Sparhawk LLC, and Sparhawk Properties. The company, in operation since 1979, lists 178 power units with FMCSA and claims more than 200 tractors and 1,000-plus trailers running dry van and refrigerated freight. Estimated liabilities across the entities range from $10 million to $50 million. Paccar Parts Fleet Service is the largest disclosed creditor at Sparhawk Trucking, with a claim of $147,805. The company did not respond to requests for comment before publication, per FreightWaves reporter John Kingston.

So What? Another regional carrier exits amid a cycle that has ground on longer than most expected. Chapter 11 gives Sparhawk a path to restructure rather than liquidate, but the filing reflects what rising fuel costs combined with still-suppressed contract rates are doing to mid-size operators who took on equipment debt during the last capacity expansion. More of these filings will come before this cycle fully turns.

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J.B. Hunt: fuel at $5/g hasn’t moved shippers toward intermodal yet

Despite a 30% run-up in fuel prices since the Iran conflict began, shippers haven’t shifted freight from truck to rail in any meaningful volume — at least not yet. J.B. Hunt intermodal president Darren Field told the J.P. Morgan Industrials Conference Tuesday that most customers don’t view the energy spike as a structural change, which explains their inaction. The economics say otherwise. SONAR’s Intermodal Contract Savings Index (IMCSI.USA) shows intermodal running 22.8% cheaper than truckload on a contract basis including fuel surcharges, well above the 10% to 15% range that historically drives conversion conversations. Meanwhile, truck capacity is tightening: J.B. Hunt estimates 5% to 12% of CDL holders could leave the industry over a three- to four-year period. Customers are also running lean inventories. "It wouldn’t take a lot of new demand to create an environment where customer inventory wasn’t quite where they wanted it, when they wanted it," Field said.

So What? The modal conversion window is wide open right now. A 22.8% cost advantage over truck is a historically large spread, sitting alongside the tightest truck capacity since the pandemic. Shippers who haven’t modeled rail at current fuel prices are leaving margin on the table. The risk: when conversion does start in earnest, intermodal capacity gets absorbed fast. J.B. Hunt reports Q1 results April 15.

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Sponsored By PCS

Strategy Guide for Mid-Market Carriers: How Winning Carriers Are Preparing for 2026 Freight conditions may level out in 2026, but profitability will separate fast. Rising fuel costs, tighter labor, and compliance demands mean mid-market fleets can’t afford to wait for market recovery to protect margin. PCS Software’s strategic planning guide shows how disciplined operators are tightening cost control, building data-driven decision systems, and choosing technology with clear ROI. Download the guide →

Clarios launches Battery-as-a-Service platform with 90-day failure forecasting for fleets

Clarios Connected Services introduced Battery Manager Pro at TMC 2026 in Nashville, a fully managed subscription system that predicts battery failures up to 90 days in advance and replaces unpredictable emergency maintenance costs with a fixed monthly fee. The platform monitors battery, alternator, and starter health remotely, delivering savings estimated at more than $500 per vehicle per year from eliminated jump starts, prevented misdiagnoses, and repairs handled in the shop rather than on the roadside. Battery life extension is estimated at 30% to 35%. "We’re making sure all the maintenance happened in the shop," said Junior Barrett, Clarios’ global director of business development. Installation takes 30 to 35 minutes per vehicle and works with any existing battery brand. Clarios expects to sign its first customer this month, per FreightWaves reporter Thomas Wasson.

So What? At $500-plus in annual savings per vehicle, Battery Manager Pro pays back fast on any fleet of meaningful size. The subscription model converts a volatile maintenance line into a predictable fixed cost, which is exactly what fleet managers need when fuel and labor expenses are running at their highest in years. The 90-day failure window eliminates the emergency roadside call, which carries costs well beyond the battery itself.

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Sponsored By Trimble

2026 Outlook: Spot Market Strategies for Shippers, Carriers, and Brokers FreightWaves and Trimble surveyed shippers, carriers, and brokers on how spot market strategies are shifting in 2026. The results show an industry using spot freight as a deliberate planning tool — not a last resort. With fuel rewriting rate assumptions and contract benchmarks from 2024 under pressure, the full findings are required reading before your next bid cycle. Download the report →

Sponsored Insight

From the Research Desk

What We’re Watching

▸ Monday’s DOE/EIA diesel print and whether the run accelerates. Nine straight weeks of increases, $1.61/g of gains, and ULSD futures still trending above $4/g. The next weekly benchmark could approach $5.20 or higher if futures hold. Carriers who haven’t updated their surcharge tables before that number posts will be absorbing costs they can’t recover. Review your surcharge structure this week, not next.

▸ Congressional action on the USPS debt ceiling. Postmaster General Steiner put a hard 12-month clock on the table Tuesday. Watch for committee markup on a debt-limit increase and any signal from House leadership on floor scheduling. USPS handles last-mile for FedEx, UPS, and Amazon in markets where no private alternative exists — a financial disruption cascades across the entire parcel ecosystem.

▸ When intermodal conversion starts moving volume. J.B. Hunt confirmed shippers haven’t acted yet despite a 22.8% intermodal cost advantage. Watch SONAR’s VOTRI for tender rejection acceleration — sustained readings above 10% to 12% historically trigger serious modal conversion conversations. When those conversations start, intermodal capacity gets absorbed quickly. Shippers waiting for a clearer signal may find themselves waiting too long.

That’s your Daily for today. See you tomorrow.

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