May 2026 Monthly Newsletter

Diesel Prices Push Shippers to Rethink How They Move Freight

Diesel prices have remained above $5 per gallon since mid-March, driving up trucking costs and constraining capacity across the U.S. Shippers are contending with higher rates, increased fuel surcharges and reduced carrier availability, with no near-term relief in sight. For companies that scaled back inventory in late 2025 expecting lower replenishment costs this year, the gap between expectation and reality is significant, and logistics providers are reporting a surge in network optimization requests as a result.

Matt Wagner, Jarrett's Chief Sales & Marketing Officer, breaks down what shippers should be doing now to get ahead of the strain.

FedEx Network 2.0 Reshapes U.S. Operations with Closures and Layoffs

FedEx is closing facilities and reducing staff across the country as part of its Network 2.0 initiative, a yearslong effort to merge its historically separate Ground and Express networks into a single operation. The overhaul is slated for full U.S. implementation by the end of 2027 and aims to eliminate overlapping driver routes and reduce costs. While separate from FedEx’s planned FedEx Freight spinoff, the Network 2.0 initiative represents another major shift in the company’s broader effort to streamline operations and improve profitability. More than 200 out of a plan to close 475-plus stations have already occurred.

FedEx predicts the consolidation will not affect transit times and will reduce complexity for shippers by eliminating the need to manage separate Express and Ground pickups. But the scale of the changes has many customers closely watching what comes next.

“Large-scale network changes often have ripple effects across a transportation network,” said Mark Gordon, Chief Operating Officer at Jarrett. “While network optimization is critical for long-term success, changes like these can quietly impact service lanes, pickup windows and transit consistency. This is an important time for shippers to ensure they have exceptional analytics, which they review regularly, in order to monitor the cost and performance of their supply chains, while developing contingency plans to manage disruption."

Read the full story at Supply Chain Dive.

Tariff Overhaul on Metals Brings Lower Rates but Higher Costs

Effective April 6, President Trump expanded Section 232 tariffs to cover aluminum, steel and copper, imposing rates of 25% to 50% on a wide range of imported goods. The bigger shift is how the tariff is calculated. It now applies to the entire value of a finished product, not just the metal content. The Cato Institute warned this change will likely raise actual dollar costs for most importers despite the lower headline rates.

The stakes are significant. Last month the National Electrical Manufacturers Association told a House subcommittee that U.S. grid expansion, reindustrialization and AI deployment all hinge on an affordable and secure copper supply, underscoring how broadly these tariffs could ripple across critical industries.

“The rule change sounds simpler on the surface, but the cost implications are significant,” said Justin McInturff, International Logistics Manager at Jarrett. “Importers need to understand exactly what they are bringing in, the metal content percentage of their product, where the metal originates and how their products are classified before these added costs take effect.”

Read the full story at Supply Chain Brain.

Late-Stage Delays are the New Bottleneck in Ocean Shipping

A new report from E2open finds that while origin performance has improved, delays are migrating into booking, transit and unloading stages. The company's Ocean Shipping Index shows global end-to-end shipment times averaged 68 days in Q1 2026, up two days from the prior quarter, even as year-over-year performance remains slightly better than last year.

The disruption is coming from multiple directions. Conflict in the Middle East, including disruptions tied to the effective closure of the Strait of Hormuz, is forcing vessels onto longer routes away from the Suez Canal. Storms in Northern Europe and congestion at the Port of Rotterdam are adding further strain, while uneven performance across Asian export hubs makes the overall environment harder to predict and manage.

“When delays shift to the back half of a shipment, your options narrow fast,” said Aaron Nussbaum, Vice President, Logistics Operations at Jarrett. “That's where having the right partner and technology makes the difference, giving you visibility across every stage so you can get ahead of problems before they become customer issues."

Read the full story at Supply Chain 247.

Jarrett Expert Featured in Transport Topics on Evolving Cargo Theft Tactics

Jessica Renner, Cargo Claims and Risk Manager at Jarrett, participated in a TIA 2026 Capital Ideas Conference Panel on April 17, 2026 . Transport Topics rounded up their discussion, covering how strategic thieves are infiltrating legitimate carriers and purchasing motor carrier numbers with full credentials and client access, along with ways the industry can protect against these evolving tactics.

Read the full story HERE.

On Deck

Kevin O’Leary to Headline Jarrett Supply Chain Summit in Cleveland

The 2026 Jarrett Supply Chain Summit will be held Aug. 5–6 in Cleveland, Ohio, bringing together supply chain and logistics leaders for strategies to stay ahead, technology innovation and real-world cargo theft prevention strategies. 

This year’s event is highlighted by keynote speaker Kevin O’Leary, entrepreneur, investor and star of ABC’s "Shark Tank," who will share candid insights on leadership, risk and winning strategies in today’s supply chain landscape. 

For more details, click HERE.

Jarrett Executives Talk Cargo Theft at Elevate TMSA Conference

Mark Gordon, Chief Operating Officer, and Matt Wagner, Chief Sales & Marketing Officer, will present at the TMSA Elevate Conference on June 9, from 9:15-10 a.m. Their session, "Beyond the Loss: How Cargo Theft Impacts Brand Trust, Customer Experience and Revenue," explores how theft-related disruptions ripple into customer confidence and long-term loyalty, and why marketing and sales teams play a critical role in the response. 

To learn more, click HERE.

Get the Latest Industry Updates

The May Supply Chain Report is out now! Stay updated with the latest in transportation news in:

-The Freight Market
-Less-than-truckload
-Truckload
-Parcel
-International

Click HERE to review the report!