LTL Rates Hit 5-Year High, But Fuel Surcharges Are the Real Story

Less-than-truckload revenue per hundredweight has climbed to $46.13 according to FreightWaves data, marking the highest level in five years and well above the six-month average of $41.31. The gain looks impressive on the surface, but a closer examination reveals that fuel costs, not rate increases, are driving the headline numbers. Diesel prices surged 60% between May 2025 and May 2026, rising from $3.50 to $5.60 per gallon. That jump alone pushed fuel surcharges from 19.5% of the base linehaul rate to 37.0%, adding more than $5.80 per hundredweight to typical invoices and accounting for the entire year-over-year increase in all-in rates. When fuel surcharges are stripped out, base rates have actually declined. FreightWaves' LCWT1.USA index shows initial contract rates flat to slightly negative year-over-year, with carriers cutting rates across most freight classes by as much as 21% in Class 50 to compete for volume. Meanwhile, van contract rates have recovered sharply from mid-2025 lows of $2.25 per mile, climbing to $2.51 per mile over the past eight months. For drivers and fleets, the message is clear: carriers are pricing aggressively on base rates to win freight, but fuel surcharge volatility continues to dominate bottom-line revenue.