Canada–U.S. Freight Costs Rise as Shipping Carrier Raises Fuel Fees to US$625 Per Refrigerated Container

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The cost of transporting temperature-sensitive goods across North America is climbing again, creating fresh challenges for businesses already dealing with expensive fuel and unpredictable supply chains.

Ocean Network Express (ONE), a major international shipping carrier, has increased its inland fuel surcharge to US$625 for certain refrigerated container shipments involving Canada and the United States, effective October 8, 2026.

The increase affects shipments combining rail and truck transportation rather than every truck crossing the Canada–U.S. border. Nevertheless, it adds another expense for companies transporting food, seafood, pharmaceuticals and other products requiring refrigeration.

With diesel prices remaining elevated and another surcharge increase already announced for November, businesses face growing uncertainty over how much their next shipment will cost.

Shipping Carrier Raises Refrigerated Container Fees to US$625

Ocean Network Express has implemented revised inland transportation fuel charges for shipments moving into and out of Canada and the United States. Under the October 8 schedule, the surcharge reaches US$625 per refrigerated container when shipments use combined rail-and-truck transportation with delivery to or collection from a customer’s facility.

The amount applies to qualifying routes through West Coast, East Coast and U.S. Gulf Coast gateways. ONE identifies the charges as Inland Haulage Fees, with IHD applying to inbound movements and IHL covering outbound shipments. These charges are separate from the carrier’s ocean freight costs and its emergency fuel surcharge for maritime transportation.

The distinction matters because the US$625 rate is not a universal fee imposed on Canada–U.S. trade. It specifically concerns eligible inland movements associated with ONE’s international shipping services. A company arranging an ordinary cross-border truck shipment through another provider would not automatically face this charge. However, Canadian importers and exporters relying on ONE for door-to-door container transportation must account for the revised pricing.

Refrigerated Shipping Costs Jump US$190 Per Container

The latest increase represents a substantial change from ONE’s previous surcharge schedule. Until October 7, the inland fuel fee for qualifying refrigerated containers using combined rail-and-truck door service was US$435. Beginning October 8, that amount rises to US$625, an increase of US$190 per container, or approximately 44%.

Other refrigerated container movements are also becoming more expensive. Rail-only shipments through qualifying Canadian and U.S. coastal gateways now carry a US$490 surcharge, compared with US$385 previously. Refrigerated containers using truck-only inland service face a US$135 fee, up from US$50. The different rates reflect the carrier’s published transportation categories.

For a business moving ten qualifying refrigerated containers, the US$190 increase translates into an additional US$1,900 in fuel surcharges compared with the previous schedule. That example excludes the underlying freight rate and other shipping expenses. Although the per-container increase may appear manageable individually, the additional costs become more noticeable for wholesalers, food distributors and exporters arranging regular shipments throughout the month.

Another Increase to US$885 Is Already Scheduled for November

The October adjustment may not be the last significant increase facing refrigerated cargo operators this autumn. In a September 30 customer advisory, Ocean Network Express announced another revision scheduled to take effect November 1, 2026, subject to applicable regulatory requirements. Under that schedule, the combined rail-and-truck inland surcharge for refrigerated containers would rise from US$625 to US$885.

That represents another US$260 per container in less than a month. Compared with the US$435 rate applicable before October 8, the proposed November amount would be US$450 higher, more than doubling the earlier charge. A company moving ten qualifying containers would face US$4,500 more in inland fuel surcharges than under the pre-October schedule.

Other shipping categories are affected as well. The scheduled November fee for certain refrigerated rail-only movements rises to US$685, while truck-only refrigerated service increases to US$200. ONE also lists a US$1,315 refrigerated long-haul truck surcharge for outbound shipments from specified American origins, including locations in Texas, Kansas and Iowa. These announced changes make transportation budgeting more challenging for businesses negotiating delivery prices weeks in advance.

High Diesel Prices Are Driving Another Freight Cost Shock

Fuel prices remain one of the biggest pressures facing North American transportation companies. Ocean Network Express has linked its emergency fuel charges to disruptions in Middle Eastern energy supplies, including restrictions affecting the Strait of Hormuz. The company says these conditions have affected fuel availability and distribution, making inland transportation more expensive. ONE has also stated that it will evaluate its inland surcharges monthly using diesel price trends.

Recent U.S. government data illustrates the pressure. According to the Energy Information Administration, the average U.S. retail price of on-highway diesel stood at US$6.199 per gallon during the week of October 5, 2026. That was lower than the previous week’s US$6.382 but still US$2.488 above the comparable level a year earlier. Consequently, even a short-term decline in diesel prices does not necessarily eliminate the higher operating costs carriers have experienced. Businesses planning refrigerated shipments must now consider that fuel surcharges could change again as energy markets and carrier pricing decisions evolve.

Refrigerated Cargo Is Especially Vulnerable to Rising Costs

Refrigerated containers carry products that cannot simply be transported without temperature controls when fuel becomes more expensive. Fresh seafood, dairy products, frozen foods and certain pharmaceuticals depend on carefully maintained conditions during transportation. These containers often require continuous electricity or generator equipment to keep refrigeration systems operating while cargo moves between ports, rail terminals, warehouses and distribution centres.

Temperature management also plays an important role in food safety. Canadian Food Inspection Agency guidance gives examples of refrigerated foods being transported between 0°C and 4°C, while frozen foods may require temperatures of −18°C or lower. Actual requirements depend on the product. U.S. Food and Drug Administration rules similarly address adequate temperature controls for food requiring refrigeration during transportation. ONE’s refrigerated cargo technology also monitors conditions such as temperature, humidity and ventilation for sensitive shipments. For food producers and distributors, reducing refrigeration merely to offset a higher fuel bill may therefore be impractical or unsafe. Protecting the shipment’s quality remains essential, even when transportation costs are increasing.

Ocean and Inland Fuel Surcharges Can Apply to the Same Shipment

The US$625 inland fuel charge is only one part of the transportation bill that importers and exporters may encounter. ONE’s customer advisory explains that applicable shipments involving Canadian or U.S. inland transportation can be subject to both an ocean Emergency Fuel Surcharge and an inland haulage surcharge. In other words, the company distinguishes the fuel costs associated with moving goods across the ocean from those involved in transporting containers inland.

That distinction becomes particularly important when examining the carrier’s November announcements. ONE has separately announced that its ocean emergency fuel surcharge for refrigerated containers on qualifying long-haul headhaul routes will rise from US$160 to US$190 per twenty-foot equivalent unit (TEU), effective November 1, subject to regulatory requirements. Unlike the US$625 inland charge, which is assessed per container, the ocean surcharge uses TEUs as its pricing unit. The two figures cannot simply be treated as identical charges. Importers need to examine container size, route, service direction and contract terms to understand the complete invoice and avoid overlooking additional costs.

Canada–U.S. Trade Volumes Highlight the Wider Economic Stakes

Canada and the United States remain deeply connected through freight transportation, making rising logistics costs an important economic concern. According to the U.S. Bureau of Transportation Statistics, freight movements between the two countries were valued at approximately US$712.8 billion in 2025. Trucks carried 55.7% of that trade by value, while rail and pipelines also played important roles in moving goods across the border.

More recent Canadian figures show how quickly trade patterns can change. Statistics Canada reported that merchandise exports to the United States increased 8.1% in August 2026, while imports from the United States declined 2.5%. Canada’s monthly merchandise trade surplus with its southern neighbour reached approximately C$11.2 billion. Those figures were recorded before ONE’s October surcharge changes and cannot establish their economic impact. They do, however, demonstrate the substantial commercial relationships operating alongside North America’s international shipping networks. The new inland charges directly concern qualifying ONE container movements, while the broader Canada–U.S. transportation market remains exposed to fuel-related pricing pressures through other carriers and transport providers.

Smaller Importers and Exporters Could Face Difficult Budget Decisions

For smaller companies, rising transportation charges create a different challenge than they do for large multinational businesses. A national distributor may have the purchasing volume and contractual flexibility to negotiate freight arrangements. A smaller seafood importer, specialty food producer or regional wholesaler may have fewer alternatives when refrigerated transportation becomes more expensive.

Consider a hypothetical importer receiving 25 qualifying refrigerated containers through ONE. Under the October rates, its inland fuel charges alone would increase by US$4,750 compared with the previous schedule. If the announced November rates take effect, the additional expense would reach US$11,250 compared with the pre-October rates. Neither calculation includes other transportation costs.

Businesses facing these increases must decide whether to absorb the expense, renegotiate supplier agreements or adjust customer pricing. The challenge becomes greater when shipments have already been ordered and prices have been agreed upon. A change in freight charges between booking and delivery can complicate financial planning, particularly for businesses handling goods with relatively short shelf lives.

Other Transportation Companies Are Also Adjusting Fuel Charges

Ocean Network Express is not the only major transportation provider using fuel surcharges to manage higher operating expenses. Maersk, another international container shipping company, published emergency intermodal fuel charges of US$250 per refrigerated container for qualifying imports moving through inland rail ramps or container yards in the United States and Canada. Its June 29 announcement maintained those existing levels while changing the descriptions used for invoicing.

Canadian National Railway also uses fuel surcharge formulas linked to diesel prices. Under its CN 7404 intermodal tariff, the published surcharge for the week beginning October 5, 2026, was 41.33% for intra-Canada traffic and 52.90% for U.S. traffic. Unlike ONE’s fixed per-container amount, CN uses a percentage-based calculation tied to its freight tariff.

Meanwhile, Hapag-Lloyd introduced separate refrigerated-container terminal handling charges in Canada and the United States effective October 1, while adjusting its standard terminal handling charges accordingly. These examples show why transportation prices cannot be compared using a single fuel fee. Each carrier applies different rules, routes and pricing structures, making the total delivered cost more important than any individual surcharge.

Higher Freight Charges Could Affect Prices, but the Impact Is Not Automatic

Increasing transportation expenses can eventually influence the prices businesses charge, particularly when higher costs persist across several stages of a supply chain. However, the relationship between shipping fees and consumer prices is not straightforward. Retailers may absorb some increases, negotiate better purchasing terms or spread additional expenses across multiple products.

Research illustrates that distinction. The U.S. Department of Agriculture reported that 88.2 cents of every dollar spent on domestically produced food in 2024 reflected post-farm activities, including processing, transportation and retailing. Separately, research published by the Federal Reserve Bank of Atlanta in September 2026 found that shipping-cost increases had little effect on U.S. producer prices during normal periods but much larger effects during the pandemic. Neither finding establishes how much ONE’s latest surcharge will influence Canadian grocery prices.

For now, the clearest consequence is greater uncertainty for businesses arranging refrigerated freight. With the US$625 rate taking effect October 8 and a US$885 rate already scheduled for November 1, importers and exporters have a strong incentive to review carrier quotations, delivery arrangements and future surcharge announcements. The bigger concern is not necessarily one expensive shipment, but the difficulty of planning when essential transportation costs keep changing.

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