When you combine the rising cost of diesel with a weak freight market, you have a trucking industry that is concerned about what 2017 will bring. The Wall Street Journal cites the American Transportation Research Institute that states fuel is one of the biggest expenses in the trucking industry, with diesel accounting for an average of 30% to 40% of a fleet’s spending. That’s a lot of money no matter how you look at it.
What Happened to Cause Rising Diesel Prices?
In case you missed it, the Organization of the Petroleum Exporting Countries agreed late last year to cut oil production.
With rising gas prices, truckers are now faced with more challenges than ever, as this expense can make it even more difficult to deal with a weak demand from shippers. Particularly when brokers are taking their cut off the top.
What Will the Future Bring?
Despite the fact that the calendar turned to a new year, this hasn’t done much to bring an end to rising fuel costs.
In fact, the average price of both diesel and regular grade gasoline continues to skyrocket. For instance, the average diesel price in the United States has reached $2.56, which is an eight cent increase when compared to three weeks ago.
With all this in mind, fleet owners are turning their attention to fleet management solutions that can help them save money, such as by keeping trucks on time and reducing the number of hours lost on the road and searching for parking.
There is no way of knowing what will happen to diesel prices as 2017 wears on, but the upward trend would mean even more budget changes for fleets. Only time will tell what’s to come.