has seen a 20 percent increase in diesel prices over the past three months, putting pressure on trucking costs in the United States. With shippers paying higher fuel surcharges on forecasts of seasonal freight demand and higher fuel prices and surcharges, it can be expected that transportation costs could climb this fall.
Geoff Muessig, chief marketing officer of Pitt Ohio, a regional less-than-truckload (LTL) carrier in Pittsburgh,, said rising fuel prices affect different airlines in different ways. As an airline, the more sustainable it is and the less emissions it emits, the less the impact of fuel on the network, and our sustainability efforts are mitigating some of the impact of rising fuel costs. "
According to weekly data released by the U.S. Energy Information Administration (EIA), the average retail price of diesel in the United States in the past week was $4.63 per gallon; this was an increase of 9 cents from the previous week. The average price in California alone is $6.19 a gallon, up 22 cents this week.
Fuel surcharge data tracked by, according to DAT Freight & Analytics, rose an average of 8 cents to 52 cents per mile from July to August, an increase of 18.2 percent. From June to September 15, surcharges for contract and spot market airlines rose 12 cents per mile to 55 cents per mile, or 28 percent.
shippers have no control over the carrier's fuel surcharge-although many shippers incorporate their own fuel surcharge into their contracts. They can control the mode of transportation of LTL and truck freight. But coping with the impact of a 20 per cent increase in fuel prices requires efficiency gains, which means that as oil prices rise, shippers will receive higher shipping costs.
LTL, vehicle producer price index rises
The impact of fuel price increases on the LTL industry is enormous. Data released by the U.S. Bureau of Labor Statistics last week showed that the producer price index (PPI) for long-distance transportation services in the United States rose 4.4 percent in August from July, while the producer price index (PPI) for long-distance truck transportation rose 1.2 percent.
Jason Miller, associate professor of logistics at Michigan State University in, said fuel prices drove much of the trucking price increase reflected in the PPI. Of the 4.4 percent increase, fuel costs and surcharges accounted for about 75 percent.
After the yellow collapse, the August LTL PPI increase appeared to be low, which pushed up many shippers' LTL rates by 5% to 15%, and the increase in freight volume also pushed up LTL costs and rates, as shippers are looking for carriers to take on goods that were once shipped by Yellow.
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