What does the fuel increase mean for us?

Fuel prices are rising again as diesel prices have jumped to over $5 per gallon.

What does this mean for transportation and operations in the United States?

Fuel now accounts for about 20% of total operating costs for carriers. As prices climb, freight rates are following closely behind. Moving goods from origin to destination is proving to become more expensive and those costs are ultimately passed down the supply chain.

Currently one of the most affected industries is the food industry. Higher transportation costs are limiting how much product is moved, at certain costs and impact what consumers see on store shelves.

This isn’t just a domestic issue either. Both over the road and international transportation feel the impact. Rising fuel surcharges are increasing the cost of imported goods influencing everyday products we rely on.

So the question becomes:

How long will this continue? What can be done to stabilize supply and demand without slowing production in the United States?