Fuel prices trending in wrong direction
It’s no secret that fuel prices have increased.
In fact, we are confident that it’s something you’ve analyzed in your personal lives as of late.
With regular fuel prices increasing weekly, we are seeing trends more than a dollar higher than a year ago and twenty-five cents higher than a week ago.
The average regular fuel price in the United States right now is over $4.30 per gallon.
If it is having that kind of impact on all of our personal lives, can you imagine what it is doing to the transportation industry?
We will break it down.
The rumors are true. Diesel fuel prices have skyrocketed in the last 4-6 weeks. In fact, in some parts of the country, diesel costs are OVER six dollars per gallon. YIKES! That is not a favorable trend for the freight and shipping industry. Arguably the largest expense in logistics is tied to transportation.
If you ask any owner-operator or fleet manager, they will tell you the most significant cost they have year-over-year is fuel- and across the country, the average fuel cost is $5.250/gallon for diesel. That’s over two dollars higher than this time last year and over forty cents higher last week.
“It’s a challenge. Carriers are telling us their overhead costs have doubled in the last month and are continuing to rise.” -Brandon Cliffe, Acct Mgr
In March 2021, diesel prices were over two dollars cheaper per gallon across the country. The bigger concern is that we don’t see any relief in sight at this point. In fact, all trends are indicating on going increases, at least in the near future.
Shippers and brokers are feeling this impact every day, but PGT will continue to work to save you money on your shipping costs. We’ve built strong relationships with carriers across the country who value our partnerships & customers.