Gas price increase – Could this be detrimental to the trucking industry?
Diesel prices have increased over 70% in the last year. With prices nearing $6.00 a gallon, truckers are spending over $1,500 every day to fill up their truck. In the automotive industry, buyers have the option of gasoline cars or electric cars. In the trucking industry, the only option is diesel. There aren't many alternatives for this, diesel is the main fuel for trucks.
Self-employed truckers are receiving the brunt of these gas prices since they are responsible for filling up their rigs. To supplement these high gas prices, shippers are charged a fueling surcharge that is included in their shipping fees. Trucking companies have to do what they can to stay a float and sometimes that means that there is potential that another company will haul goods for cheaper than your company. With the increase in diesel, the surcharge is increasing as well. This ripple effect then leads to an increase in good’s prices. If it’s going to cost more to transport an item, say for example, food, the shelf prices are going to increase as well due to this. As gas prices are increasing, trucking companies are stuck in a tough spot. However, the reality is that goods will always need to be transported from one location to another which means the fate of trucking companies will still be in demand inevitably. The supply chain is dependent on modes of transportation.
In 2021, many new trucking companies came about creating record breaking numbers of new companies. Unfortunately, these companies were unable to make considerable quotes to potential customers. These trucking companies won’t be able to keep up with other trucking companies with the way gas prices are sitting in 2022. Since these companies are unable to keep up, there leaves less trucking companies in the market to choose from and more opportunities for the ones that have considerable prices and have been around for multiple years.
Looking for a quote that fits in your budget? Reach out to Al-Amin Brothers Transportation LLC at (708) 895-5060 or online. Al-Amin Brothers Transportation is always looking for new drivers to join the fleet. Are you an independent trucker that gas prices have caused to park your truck? Fill out an application today to join our team of drivers.