The trucking industry has been hit hard by the rising cost of fuel. As the Ukraine-Russia conflict continues, oil prices have risen fast, reaching $123.70 per barrel in early March. This is the highest price since September of last year, and it is expected to continue to rise in the coming months.

The trucking industry is particularly vulnerable to these increases, as fuel is their most significant variable operating expense. In fact, fuel costs make up an estimated 33% of a trucking company’s operating expenses.

With oil prices expected to continue to rise, the trucking industry is facing some tough decisions in the coming months.

Diesel has surged to a record high of more than $5 per gallon, devastating smaller transport companies. Larger trucking companies are absorbing the increased costs by renegotiating rates and fuel surcharges with their customers.

This is not a sustainable option for either party, and prices will likely continue to rise even further in order to cover the increased cost of fuel. This could lead to layoffs in the trucking industry and ultimately higher prices for consumers.

Smaller companies might take time to develop

One option that some trucking companies are considering is raising prices for their services. This would help offset the increased fuel cost, but it could also lead to decreased demand for their services.

Another option to consider is to reduce trucks on the road, which would also help offset the increased cost of fuel and lead to decreased profits. Either way, the rising cost of fuel is likely to have a negative impact on the trucking industry in the coming months.

The average price of diesel fuel has risen by 11 cents per gallon since the beginning of the year. This may not seem like a lot, but it can add up quickly for a trucking company. In fact, if fuel prices continue to rise at this rate, the cost of diesel fuel will have increased by 29 cents per gallon by the end of the year.

As fuel costs continue to rise, the trucking industry – especially small businesses – will continue to feel the squeeze. How long they can hold on remains to be seen.

The trucking industry is just one example of the many industries that are being impacted by the high price of oil. The bottom line is that the high price of oil is having a ripple effect on the economy, and it is likely that everyone will all feel the consequences of a rise in inflation.

We will continue to monitor the spot market and its impact on the trucking industry. Check here for weekly blogs and news.