Fuel Costs, what does this mean for the future of trucking?
Updated: Jul 27
As we have all seen the price of fuel skyrocket in late August which has caused around a year of uncertainty for most drivers. While the price of trucking is based of operating cost of drivers the second largest cost is the price of fuel. We have seen a lot of carrier build in the Fuel Surcharge from the retail price. Though this is where prices differ as the wholesale price moves faster than the retail price of fuel. This can either decrease or increase carriers a carriers costs due to the disconnect.
Most carriers still use spot market rates which include fuel in their cost. It seems insane to say that normally this would push margins higher, though for van rates these have actually declined. We are staring to see the market soften due to including fuel cost and it looks to seem the costs may equal out soon, but what will that mean with the peak season coming up very soon? We will need to wait to find out!