Fuel costs are a huge cost component of operating a trucking business. Small operators are at a significant disadvantage in the current market thanks not only to declining demand but fuel price volatility.
Strong demand for diesel leads to high prices and tight inventories going into winter
Dry van volume dropped significantly this month leading into the holidays, but reefer demand remains strong. Diesel price per gallon grows slowly, but the spread between wholesale and retail prices rises.
Volumes out of Seattle are trending up this week after reaching a two-year low, and diesel prices are up more than 30 cents since the start of the month.
Outbound tender rejection rates, a measure of the percentage of truckload shipments tendered to carriers by shippers, have reached a record at 5.05%. For trucking, this will be a cause of mostly stress instead of celebration.
The Lakeland and Jacksonville markets are both recovering from Ian, but tender rejections remain relatively high. Retail diesel prices are swinging back up, collapsing the spread between retail and wholesale.
Atlanta is seeing consistent levels of outbound volume, retaining the majority market share with 4.1%. Diesel prices are decreasing at a faster rate than they increased over the summer.
Rejection rates in El Paso swung upward in response to an increase in outbound volume, and the Department of Energy clocks diesel prices below $5 per gallon for the first time since April.
If the U.S. curbed gasoline and diesel exports, tankers would sail longer distances to replace lost volumes — a plus for tanker earnings.
ATRI: Costliest year ever in trucking On Wednesday, the American Transportation Research Institute (ATRI) released its annual report on the operational costs of trucking. The report, which has been published annually since 2008, is based on motor carrier financial and operations data from 2021. Below are some highlights from the report and press release: Total […]