freight

Freight Industry Warning: California Trucking Companies Say Costs and Regulations Are Reaching a Breaking Point

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freight

Freight Industry Warning: The February 24 edition of the AgNet News Hour tackled a topic that affects every farmer, processor, retailer, and consumer in California — freight. Hosts Nick Papagni and Josh McGill devoted the program to a candid and urgent conversation with Mark Woods and Jose Nunez of Wildwood Express, who say the state’s trucking industry is approaching a critical breaking point.

Woods, who operates a 45-truck fleet based in Kings County, laid out the growing list of challenges facing California freight companies: rising fuel costs, increasing insurance premiums, emissions regulations, equipment mandates, licensing issues, and deteriorating road infrastructure. While growers often talk about water, labor, and regulation, Woods emphasized that none of it matters if product can’t move.

“If you can’t get it to market, you’re dead in the water,” McGill noted — a reality that applies to almonds, tomatoes, citrus, livestock, and every other commodity grown in the state.

Fuel remains one of the largest burdens. California diesel prices run significantly higher than neighboring states, and with refinery closures looming, uncertainty around supply and future pricing adds another layer of stress. Woods warned that rising transportation costs inevitably trickle down to consumers — whether it’s the price of produce, meat, or a restaurant meal.

Insurance is another major pressure point. Freight companies are investing in advanced safety technology — including AI-powered monitoring systems and in-cab cameras — to reduce accidents and protect drivers. Yet despite those investments, insurance costs continue climbing. Woods said companies are doing everything they can to operate safely and efficiently, but margins remain razor thin.

Regulatory complexity compounds the issue. Emissions testing requirements, equipment standards, and licensing enforcement create additional compliance hurdles. Woods expressed concern that smaller operators may not survive under the weight of expanding mandates, particularly as newer truck models become more expensive.

The conversation also addressed workforce challenges. While interest in commercial driving remains steady, language requirements and licensing scrutiny are impacting available drivers. Meanwhile, California’s poor road conditions accelerate wear and tear on already costly equipment.

Papagni underscored a critical point: everything in your home — from food to furniture — was delivered by truck. Freight is not optional. It is foundational.

As Woods put it, the trucking industry isn’t asking for special treatment — just a level playing field and practical policies that allow companies to remain profitable while serving California agriculture.

Part two of the freight discussion continues tomorrow.

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