JACKSONVILLE, Fla. — Rising diesel fuel prices are putting increasing financial pressure on Florida trucking companies, with fuel costs surpassing driver compensation as the largest operating expense for some fleets.
Florida Trucking Association CEO Scott Perry said the combination of higher diesel prices, insurance premiums, equipment costs and driver wages is squeezing motor carriers already struggling with tighter margins.
“Traditionally, driver pay was the number one line item on the P&L,” Perry told FreightWaves during an interview at the WEX OTR Summit in Jacksonville, Florida. “Fuel has surpassed that in many instances, and it’s extremely challenging for them to absorb that if they don’t have good fuel charge mechanisms or recapture ability with their customers.”
Perry, a trucking industry veteran with more than 35 years of experience, said carriers without adequate fuel surcharge arrangements are particularly vulnerable to sudden price increases.
He cited a roughly 70% year-over-year increase in fuel costs, warning that such a surge could be catastrophic for carriers unable to recover the additional expense from customers.
While he said he was unaware of any Florida Trucking Association members that had closed or laid off workers specifically because of the recent fuel increases, he acknowledged that financial pressures are mounting.
“I’ve had several that it’s definitely compressing their ability to operate with increases in insurance that they’ve been absorbing over the last three, four, five years or more, the pressure on wages from a driver retention standpoint,” Perry said.
“All of that combined adds up to generally a negative margin business that can’t be sustained forever.”
Perry said Florida trucking companies are becoming somewhat more optimistic about freight rates heading into 2027 as trucking capacity continues to tighten.
However, he cautioned that much of the improvement is being driven by fewer available trucks rather than a significant increase in freight demand.
“I think there is some improved confidence with rates and what they’re seeing in rate structures right now,” Perry said. “As we’ve heard and read, there’s not a real demand increase in many instances. It’s capacity is being taken out of the market.”
Perry said higher freight rates could help carriers recover some of their operating expenses, but much of the additional revenue is currently being absorbed by rising diesel costs.
He also said some shippers have attempted to reverse the substantial rate increases granted during the COVID-19 pandemic, despite trucking companies facing significantly higher operating expenses than they did before 2020.
“We’ve seen insurance costs go up substantially. Diesel rates are up substantially. Labor rates are up substantially,” Perry said. “Those don’t align with the depressing rates back to pre-COVID era. It just doesn’t.”
Perry said trucking companies need sustainable rates to maintain profitability and continue investing in their fleets.
He warned that many carriers are delaying equipment replacement because of financial pressures, potentially creating additional challenges involving reliability, productivity and driver retention.
“There’s got to be realism in the rates,” Perry said. “There’s got to be recognition that those costs are real. There has to be the ability for those carriers to make a profit so that they can reinvest in their businesses.”
Florida expands truck parking along I-4 corridor
Beyond operating costs, Perry said Florida is making progress on one of the trucking industry’s longstanding infrastructure challenges: the shortage of safe truck parking.
He said the state began 2026 with approximately 2,100 public-access truck parking spaces and is moving forward with a four-phase project to add another 922 spaces.
A groundbreaking ceremony for the project took place in July.
Most of the additional parking spaces are planned along the Interstate 4 corridor, which connects the Tampa and Orlando regions and carries significant commercial truck traffic.
“That will absolutely help put a dent in the need for secure parking, easily accessible parking,” Perry said.
However, he emphasized that the additional spaces would not eliminate Florida’s truck parking shortage.
“Will 3,000 public access parking spaces serve the entire need for the industry? No, it won’t,” Perry said. “Is this a significant step in the right direction? It absolutely is.”
Perry said the shortage can force drivers to choose between complying with federal hours-of-service regulations and stopping in potentially unsafe locations, including highway shoulders and exit ramps.
He said that expanding truck parking is essential to both driver safety and fleet productivity.
“We need to provide them with solutions that give them access to maximize their productivity for their driving hours, have a safe place to park and get their rest break,” Perry said.
Florida carriers support stronger enforcement
Perry also expressed support for federal efforts to strengthen trucking safety enforcement, including increased scrutiny of non-domiciled commercial driver’s licenses, English-language proficiency requirements and electronic logging device compliance.
Florida trucking companies generally support efforts to identify carriers that circumvent federal regulations and gain an unfair competitive advantage over compliant fleets, he said.
Perry specifically praised Federal Motor Carrier Safety Administration Administrator Derek Barrs, who previously served with the Florida Highway Patrol.
“They appreciate the fact that he’s pushing to eliminate those carriers who are breaking the rules, bending the rules, manipulating the rules,” Perry said.
He also supports proposed safeguards aimed at preventing the manipulation of electronic logging devices, which are used to track drivers’ hours of service.
Tampering with ELD records can allow drivers to operate beyond legally permitted hours, creating risks for truck drivers and the traveling public.
“Anything we can do to make sure that drivers aren’t operating beyond the legally allowable hours and there’s no manipulation of ELDs to extend those hours and create unsafe circumstances … can only improve public safety,” Perry said.
He said the association supports enforcement measures that promote a level playing field among motor carriers while improving highway safety.
Carriers need sustainable margins heading into 2027
Perry said trucking companies remain hopeful that improving freight rates will eventually provide some relief from years of weak margins.
However, he warned that a meaningful recovery must allow carriers to cover operating expenses and invest in replacement equipment.
New trucks, insurance and labor have become substantially more expensive, he said, making it increasingly difficult for carriers to operate profitably at freight rates comparable to those before the pandemic.
Delaying equipment investments can create additional problems for fleets already struggling to retain qualified drivers and maintain productivity.
“If they’re not able to reinvest in their business, they’re just buying time and postponing the inevitable,” he said.
Why it matters: Sustained operating cost increases could force trucking companies to delay equipment purchases, reduce investment or face greater financial distress despite signs of a freight market recovery.
