Nick Papagni, “the Ag Meter”, spoke with Nick Foglio of Foglio Commodities about the alarming state of the freight industry in California — and it’s not good news.
“There’s some of the cheapest freight going down the road right now that we’ve seen in the last, gosh, maybe 10 years,” Foglio said.
Freight rates are plummeting, with brokers taking advantage of load boards to drive prices down. While one might assume trucking costs would rise with inflation and operational challenges, the opposite is true.
And it’s squeezing California trucking businesses hard.
“By the time you purchase a new $250,000 truck, an $80,000 trailer, pay California’s outrageous insurance, and a decent wage to keep a driver in the seat — you’re likely operating at a loss.”
Foglio warns that without intervention, California’s freight infrastructure could suffer long-term damage. It’s not just about trucking companies — it’s about the entire ag supply chain they serve.
“California must do better with our freight industry,” he concludes.
Reporting by Nick Papagni, “The Ag Meter”