The benchmark diesel price used for most fuel surcharges hit an important milestone this week: it is at its highest level since military action commenced against Iran in early March.
The weekly Department of Energy/Energy Information Administration average weekly retail diesel price rose 19.8 cents/gallon to $5.652/g, effective Monday but published Tuesday. The previous high price was $5.643/g set April 6.
That price is now up 39.5 cts/g in the last two weeks.
But after increasing for 12 out of 13 trading days through Friday, which translated into the higher retail price published by DOE/EIA, ultra low sulfur diesel (ULSD) on the CMD commodity exchange declined Monday by 22.72 cts/g, falling to $4.2677/g. At approximately 10 a.m. Monday, it was up slightly though had been down about 6 cts/g earlier.
The high settlement during that runup was Friday, when it settled just under $4.50/g, starting to push closer to the March 20 settlement of $4.6084/g that marked the highest settle since military action against Iran began.
The sudden downward turn in prices that began as soon as trading on the CME commenced for the week Sunday evening U.S. time has been attributed to the U.S. Treasury Secretary Scott Bessent saying the Trump administration will focus more on economic pressure on Iran rather than renewed military action.
The diesel market has been marked in recent weeks by its strengthening on the retail level, even as retail gasoline has not moved anywhere near as much.
For example, the AAA average daily gasoline price Tuesday was $4.0969/g. A month ago, it was $4.1109/g.
Retail diesel was $5.2778/g a month ago, according to AAA. On Tuesday, it was $5.6199/g.
Diesel markets have their own set of bullish factors that gasoline avoids: Ukrainian strikes on diesel-oriented Russian refineries; the physical qualities of Middle East crudes that aren’t getting to market, which tend to produce high quantities of diesel; and as has been the case for several years, reduced demand for the marginal barrel of gasoline because of steady adoption of electric vehicles around the world (though less so in the U.S.)
One debate that is ongoing in oil markets in the last several days has been wide swings in estimates of the amount of oil getting through the Strait of Hormuz.
Much of the debate was spurred by reporting from Axios, which quoted unidentified U.S. officials as saying a “stealth” transit led by the U.S. through the southern portion of the Gulf, to avoid Iranian attacks, has helped the supply of oil out of the Gulf get up to 10 million b/d, which is still only about half of the pre-war level.
But given that the source of that information were Trump administration officials, the number received significant pushback in social media.
David Wech, the chief economist at tanker-tracking firm Vortexa, told CNBC Friday that the number it sees fluctuates. While he did not refer to the Axios report directly, he indirectly said it could be accurate on some days.
“Currently, where we are seeing it depends a lot on which time period you look at,” Wech said. “On the average of the last month, we see six to seven million barrels per day of crude oil going through. There are peaks in our data on the seven-day moving average of up to close to 10 million barrels per day, and the best day we saw was 40 million barrels per day. So it depends really a lot what time period you’re looking at.”
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Shippers should consider U.S. West Coast import gateways for significant cost savings, even with added inland logistics.
“If a shipper has the flexibility of importing goods into U.S. West Coast instead of East Coast, then they must seriously consider it because there is dramatic savings potential, even if it means a heavier reliance on truck and rail to reach the final destination,” said Xeneta Chief Analyst Peter Sand. “This underlines the dynamic approach supply chain professionals must take in managing resilience and freight spend during major market shocks.”
While spot rates on the trans-Pacific continue to tick up, the spread between these two U.S. fronthaul trades is also growing.
“Importing into the U.S. East Coast is currently $3,334 per forty foot equivalent unit (FEU) more expensive than the U.S. West Coast,” Sand said. “Incredibly, this current spread between the trades is greater than the total cost of shipping one container into either coast before the start of the Middle East crisis on February 28 when spot rates stood at $1,879 per FEU into U.S. West Coast and $2,651 into U.S. East Coast.”
Xeneta’s market average spot rates from Asia for the week of August 21 were up 2.7% to $7,193 per FEU to the West Coast, and 2.8% to $10,527 to the East Coast.
Carriers are flexing their negotiating strength amid unexpectedly strong demand and increased blank sailings, sending spot rates to the East Coast up almost 300% compared to pre-Middle East crisis. Severe congestion from typhoons and growing demand among key Asia ports is also causing havoc in rotations.
“But the European trades show there is a ceiling, with spot rates into North Europe and Mediterranean softening for over a month,” said Sand. “Uncertainty is toxic for supply chains and the uncertainty feels more severe in the U.S., which could explain why rates are still heading upwards. But U.S. shippers should certainly look towards Europe when negotiating because it shows carriers are not invincible and it is possible to negotiate lower rates.”
Since the end of February, Asia-West Coast prices are up 39%, or $2,812 per FEU. Asia-East Coast rates have surged 42%, or $4,399 per FEU.
Read more articles by Stuart Chirls here.
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Descartes Systems Group announced Monday that it has acquired Tai, a TMS provider for freight brokers, for $100 million. The deal was funded with cash on hand.
California-based Tai’s AI-powered platform oversees the entire shipment lifecycle, including quoting, sourcing, execution and invoicing. The TMS primarily executes truckload, less-than-truckload, drayage and cross-border shipments.
“The acquisition expands our transportation management capabilities for freight brokers and adds valuable transaction, carrier and shipment execution data to the Descartes Global Logistics NetworkTM,” said Andrew Wimer, associate general manager of transportation management at Descartes.
The Canadian company continues to expand its offering through acquisitions. It has executed 34 deals since 2017.
Descartes (NASDAQ: DSGX) acquired Latin American last-mile logistics tech provider Drivin for $30 million last month. It acquired Pittsburgh-based fleet safety solutions provider Idelic for $28 million in April.
“Tai complements our strengths in carrier onboarding, compliance, fraud prevention, and real-time visibility,” said Descartes CEO Ed Ryan. “By combining our solutions, we see a significant opportunity to help freight brokers navigate change, streamline freight execution, improve operating margins, strengthen customer and carrier relationships, and support digital transformation.”
Descartes reports 2027 fiscal second quarter results on Sept. 10 after the market closes.
Why it matters? The deal signals a strategic move toward deeper digital integration and automation in broker-focused technology.
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U.S.-Canada trade negotiations collapsed just hours before a deadline to avert steep new tariffs, sending the two countries into an escalating trade dispute that could ripple through trucking, automotive manufacturing and cross-border supply chains.
The United States imposed 50% tariffs on billions of dollars of Canadian goods beginning at 12:01 a.m. ET Saturday after negotiators failed to reach an agreement Friday. The affected imports include products ranging from cement and dairy products to hockey sticks and other goods.
Canada is the second-largest trading partner of the United States, behind Mexico. In June, cross-border freight between the U.S. and Canada totaled $67.9 billion, according to the Bureau of Transportation Statistics. The two countries have deeply integrated supply chains, particularly in motor vehicles, machinery and energy products such as crude oil.
Canada has announced plans to retaliate against U.S. imports beginning Sept. 8, setting up the prospect of another round of tariff escalation between two of the world’s most integrated trading partners.
U.S. Trade Representative Jamieson Greer on Monday blamed Canada for the breakdown, saying negotiators appeared close to an agreement Tuesday before Ottawa sought additional concessions during the final stages.
“We progressed to a point Tuesday night where we had enough agreement among the parties to announce that we had … found the way to a deal,” Greer told CNBC. But as negotiators worked to finalize the agreement, he said the Canadians “wanted more.”
Canadian Prime Minister Mark Carney offered a sharply different account, saying the Trump administration was making last-minute changes that Canada considered unfair and economically unacceptable.
Heavy-duty trucks emerge as sticking point
One of the disputes with direct implications for the freight industry involved tariffs on medium- and heavy-duty vehicles.
Mark Wiseman, Canada’s ambassador to the U.S., said Canada wanted medium- and heavy-duty vehicles included in tariff relief, while Washington resisted lowering tariffs on those vehicles, according to Bloomberg.
The issue affects automakers including General Motors and Ford, which operate manufacturing facilities in Canada. Wiseman said Canada wanted to protect its domestic assembly industry covering passenger vehicles, light trucks and medium- and heavy-duty trucks.
The Trump administration’s proposed agreement would have offered tariff reductions covering Canadian steel, aluminum, automobiles and lumber, according to Greer. Canada ultimately rejected the terms.
Cross-border supply chains face new uncertainty
For companies moving goods between the two countries, the biggest question may be whether the tariff escalation lasts days, weeks or becomes a longer-term feature of North American trade.
Dave Townsend, a partner in Dorsey & Whitney’s International Trade Group, said businesses are waking up to a dramatically different tariff environment.
“The biggest question now is whether this is a temporary tariff hike or will last for some time,” Townsend said in a statement. He said both governments have a strong incentive to continue negotiating rather than allowing tariffs and countermeasures to spiral.
Augustine Lo, an international trade attorney at Dorsey & Whitney, said the new tariffs represent a major departure from the largely duty-free trade businesses have come to expect between the United States and Canada since the North American Free Trade Agreement took effect in the 1990s.
Lo warned that Canadian retaliation could have repercussions across roughly $800 billion in annual goods trade between the countries, along with about $100 billion in services trade.
Whether Washington and Ottawa return to the negotiating table before Canada’s retaliatory tariffs begin Sept. 8 remains uncertain. Wiseman said communications between the two governments are continuing, but declined to say whether Canada is prepared to formally restart negotiations.
Why it matters: The collapse of U.S.-Canada negotiations turns a threatened tariff fight into a real cross-border cost, potentially disrupting hundreds of billions of dollars in annual trade while creating new uncertainty for trucking, automotive and industrial supply chains.
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U.S. Customs and Border Protection officers found more than $9.5 million in suspected methamphetamine inside a commercial detergent shipment entering Texas.
The discovery happened Aug. 11 at the Roma International Bridge, according to a CBP announcement. A 2012 tractor-trailer arrived from Mexico carrying the declared load. Officers directed the vehicle to secondary inspection for additional screening.
CBP used nonintrusive inspection equipment while examining the commercial shipment. A canine team also assisted officers during the search. Authorities then discovered packages concealed within the detergent load. The inspection ultimately uncovered 240 bundles containing suspected narcotics.
More than 1,000 pounds discovered
The packages contained 1,071 pounds, or 485.78 kilograms, of suspected methamphetamine. CBP estimated the narcotics had a street value exceeding $9.57 million. Officers seized the drugs following the discovery.
“Drug smugglers sometimes try to hide in plain sight, but our frontline CBP officers remain vigilant,” Port Director Andres Guerra stated. He oversees the Roma Port of Entry. Guerra credited technology and experience with helping personnel identify the contraband.
The Roma International Bridge connects Roma, Texas, with Ciudad Miguel Alemán, Tamaulipas, Mexico. Commercial vehicles use the crossing to transport freight between both countries. This seizure involved a tractor-trailer carrying a declared detergent shipment into the United States.
Driver and tractor-trailer transferred to police
CBP officers turned the driver, tractor-trailer and suspected narcotics over to the Roma Police Department. Local authorities opened a criminal investigation following the seizure. The federal announcement did not identify the person operating the vehicle.
CBP also did not announce criminal charges in its release. The agency provided no information about the shipment’s origin beyond its arrival from Mexico. Officials did not identify a shipper, carrier, broker or intended recipient.
Authorities also provided no details explaining how the narcotics entered the detergent shipment. The announcement did not identify any additional suspects or organizations connected with the load. Investigators may release further information as the criminal case develops.
Why It Matters
Commercial shipments can provide concealment opportunities for large quantities of illegal drugs moving through international freight channels. This case shows why border inspections remain important even when documentation and declared cargo appear routine.
Click here for more articles on cargo theft and freight fraud by Phil Brink.
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Borderlands Mexico is a weekly rundown of developments in the world of United States-Mexico cross-border trucking and trade. This week in Borderlands Mexico: Criminal groups keep pressure on Mexican freight networks; Nuevo León posts $17B in IMMEX exports through May and Mitsubishi Logistics invests $40M in US warehouse expansion.
Criminal groups keep pressure on Mexican freight networks
Mexican authorities say cargo theft targeting trucking companies is declining nationwide, while Overhaul and recent industry warnings suggest organized criminal groups continue to keep pressure on freight operators across some of the country’s busiest logistics corridors.
Guillermo Briseño Lobera, commander of Mexico’s National Guard, said cargo thefts involving trucking companies are projected to decline 37% in 2026 compared with the 6,263 incidents reported in 2025, according to La Jornada.
Authorities have recorded 2,519 cargo thefts so far this year, continuing a downward trend that has seen the crime fall 52.07% between 2018 and 2025.
Briseño said the federal government’s Balam highway security strategy has contributed to the decline. The program, which operates in 12 states, helped reduce cargo theft incidents by 37.19% between 2024 and 2025 while increasing recoveries of stolen cargo vehicles.
Authorities also reported significant reductions along several major freight corridors, including the Mexico-Querétaro route, where cargo theft fell 85.7%, the Mexico-Puebla corridor, where thefts dropped 90%, and the Mazatlán-Culiacán highway, where officials reported no cargo theft incidents.
However, new data from supply chain risk management firm Overhaul’s Mexico Q2 2026 Cargo Theft Report shows cargo theft remains one of the country’s most significant supply chain security challenges.
Central Mexico remains cargo theft epicenter
Overhaul found that 76% of cargo theft incidents involved violence, underscoring the continuing threat facing drivers and fleets operating throughout Mexico.
Cargo theft activity remains heavily concentrated in central and western Mexico, Overhaul said.
The company’s second-quarter analysis found that 77% of cargo theft incidents occurred in the Center and West regions of the country, accounting for 46% and 31% of reported thefts, respectively.
The State of Mexico, Puebla and Guanajuato remained the three most affected states during the second quarter, accounting for nearly half of all cargo theft activity nationwide.
The State of Mexico represented 18% of incidents, Puebla 17.9% and Guanajuato 10.8%. Overall, 86.3% of Mexico’s cargo theft incidents were concentrated in just 10 states.
While theft activity declined in Puebla and the State of Mexico compared to a year ago, Overhaul reported increases in Guanajuato, Veracruz, San Luis Potosí, Jalisco, Michoacán and Tlaxcala.
Criminals targeting food, fuel and agricultural products
Food and beverage shipments remained the most frequently targeted cargo category during the second quarter, accounting for 30% of thefts, followed by miscellaneous freight (11%), auto parts (9%), construction and industrial products (9%) and fuel (7%).
Overhaul said agricultural cargo theft showed one of the largest increases year over year. Agro-related thefts increased by four percentage points, with fertilizers and pesticides among the most targeted products. Auto parts theft rose three percentage points, while fuel theft increased two percentage points.
Most thefts occur during business days and evening hours
Cargo theft patterns remained highly predictable during the second quarter.
Overhaul reported that 85% of cargo theft incidents occurred Monday through Friday, with criminal activity peaking between Tuesday and Friday. The highest-risk period was between 6 p.m. and midnight, accounting for 31% of incidents, while two major theft windows emerged between 3 a.m. and 7 a.m. and between 6 p.m. and 10 p.m.
Organized crime groups continue evolving tactics
Recent enforcement actions highlight the continued sophistication of cargo theft organizations.
Mexico’s Secretariat of Security and Citizen Protection announced Aug. 15 that federal authorities arrested three suspects linked to a criminal cell accused of cargo theft, express kidnappings of truck drivers and the corruption of local officials along freight routes in Veracruz and Puebla.
Authorities said the group operated along the Federal Highway 150-D corridor connecting Puebla and Veracruz, one of Mexico’s most important trucking routes.
Nuevo León posts $17B in IMMEX exports through May
Nuevo León recorded more than $17 billion in exports under Mexico’s IMMEX manufacturing program during the first five months of 2026, an 8.9% increase compared to the same period a year ago, according to a news release.
State officials said Nuevo León accounted for 16% of Mexico’s total IMMEX exports from January through May, highlighting the region’s importance to the nation’s export-oriented manufacturing sector.
The state also ranked first nationally in IMMEX employment, with more than 401,000 workers employed by IMMEX companies as of May 2026.
The export figures were highlighted by Nuevo León Gov. Samuel García during a presentation on the state’s economic performance. García said Nuevo León continues to lead Mexico in attracting new domestic and foreign investment and remains the country’s top manufacturing state, accounting for 12.7% of national manufacturing GDP.
Nuevo León, home to Monterrey and hundreds of manufacturing facilities, has been one of the biggest beneficiaries of nearshoring investment in Mexico, particularly in automotive, industrial, electronics and logistics sectors.
Mitsubishi Logistics invests $40M in US warehouse expansion
Mitsubishi Logistics is investing $40 million to develop two large-scale distribution centers in the U.S. as part of a strategy to expand its overseas real estate and asset-turnover business, according to Nikkei Asia.
One of the projects will be a 710,000-square-foot distribution center in Houston, Texas, which is scheduled for completion in July 2027. The second distribution center, to be located in Alabama, is expected to be completed in June 2027.
Mitsubishi Logistics Corp. is a major Japanese global logistics and real estate company founded in April 1887. It is a key member of the Mitsubishi Group, according to its website.
Why it matters: Mexico’s cargo theft problem appears to be improving on paper, but the persistence of violent thefts, organized criminal networks and shifting tactics means shippers, carriers and cross-border logistics providers still face significant security risks across key freight corridors.
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