C.H. Robinson waives fuel card fees amid rising diesel costs

The Iran conflict is driving higher energy prices and pushing diesel costs sharply higher at the pump. Freight brokerages are responding. C.H. Robinson (NASDAQ: CHRW) announced Wednesday it is offering free discount-fuel cards and free cash advances for fuel to help its network of contract carriers weather the spike.

Diesel prices paid at the pump rose sharply higher in recent weeks, with the national average for ultra-low sulfur diesel reaching $5.401 per gallon for the week ending March 30. This is the highest level since late 2022. The benchmark price has now risen for 11 consecutive weeks and is up nearly $1.94 per gallon since mid-January, according to the U.S. Energy Information Administration.

“Fuel is the biggest expense for a carrier, typically running 20% and as much as 28% of the cost of operating a truck,” said Michael Castagnetto, the company’s president of North American Surface Transportation. “With the largest network of carriers in North America, we want to help them get through this unexpected financial strain. Today’s environment is especially challenging for the nearly 60% of carriers that are owner-operators. These small businesses carry a huge amount of the goods that come to everybody’s stores, offices, factories and homes.”

The Eden Prairie, Minnesota-based company said its fuel card provides savings of up to $385 per fill and up to $9,000 a year per truck. The application fee is being waived for carriers who apply in April and May. The company is also waiving the cash-advance fee for advances requested on the fuel card during those two months. Carriers can receive up to 60% of their pay after picking up a load.