Rising Transportation Costs: What the November 2025 Producer Price Index Means for U.S. Shippers

The Bureau of Transportation Statistics (BTS) recently released its Transportation Producer Price Index (PPI) data for November 2025, providing valuable insight into the inflationary pressures facing the logistics and freight industry. Released on January 14, 2026 (BTS 26-09), this index measures changes in the costs producers face when purchasing transportation services and equipment — a key indicator for shippers monitoring freight expenses.

From November 2024 to November 2025, prices for freight transportation and equipment rose 2.2% year-over-year. This increase reflects higher input costs for carriers, which often translate into upward pressure on freight rates over time.

Mode-Specific Transportation Services PPI Changes

The breakdown by mode highlights where cost pressures are most pronounced for shippers relying on specific transportation options:

• Truck: +4.2% — The largest increase among major modes, signaling significant cost escalation in trucking services, which dominate U.S. domestic freight movement.

• Air: +1.9%

• Rail: +1.9%

• Arrangement of freight and cargo: +1.8%

• Water: +0.6% — The smallest rise, offering relative stability for ocean or inland waterway shipments.

For context, the overall all services PPI (transportation and non-transportation combined) increased 2.5% over the same period. Transportation services contributed 12.4% to the total rise in producer costs across all services.

These figures indicate that while inflation in transportation remains below the broader services average in some areas, trucking — the backbone of U.S. supply chains — is experiencing notably higher cost growth.

Implications for U.S. Shippers

As a U.S. shipper, these PPI trends matter because producer-side inflation often flows downstream:

• Higher carrier costs (especially in trucking) can lead to rate increases during contract negotiations or spot market volatility.

• Truck-dominant shippers face the most immediate pressure, with a 4.2% year-over-year jump potentially impacting budgets for LTL, truckload, and dedicated carriage.

• Diversified strategies — incorporating rail, intermodal, or water where feasible — may help mitigate exposure to the sharpest increases.

• Equipment costs are also up (reflected in the overall 2.2% freight transportation and equipment rise), which could affect carrier fleet investments and long-term capacity availability.

In an environment where freight volumes show signs of stabilization (as seen in recent Freight TSI data), these cost increases underscore the need for proactive planning. Shippers should review contracts, explore mode shifts, optimize routing, and build stronger carrier relationships to manage rising expenses effectively.

How Gain Consulting Can Help

At Gain Consulting, we work closely with U.S. shippers to navigate inflationary trends, benchmark rates against industry indexes like the PPI, and implement data-driven strategies to control transportation spend. Our team analyzes mode-specific cost drivers, forecasts potential rate adjustments, and helps design resilient supply chains that balance cost, service, and reliability.

Whether you're facing trucking cost pressures or seeking ways to leverage lower-inflation modes, we're here to support your logistics goals.

For more insights on freight market trends, economic indicators, and cost management strategies, reach out to the Gain Consulting team today.

Stay ahead of the curve — connect with us for tailored supply chain solutions.

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