According to data from the U.S. Energy Information Administration (EIA), the national average retail diesel fuel price has continued to rise, reaching $4.58 per gallon during the second week of September 2023. The EIA anticipates a reduction in global oil inventories of nearly half a million barrels per day during the latter half of 2023, causing oil prices to rise over the remainder of the year.
The heavy hauling industry’s response to rising diesel prices often translates to higher freight rates. These higher shipping costs may ultimately influence consumer prices for various goods and services, putting pressure on inflation. Trucking companies need to discover strategies to increase operational effectiveness as diesel prices rise. This includes optimizing routes, enhancing fuel efficiency, and exploring alternative technologies to mitigate the impact of rising fuel costs.
The increase in diesel fuel prices is challenging rates for carriers. Breaking it down, a carrier’s fuel expenses are typically offset by a combination of connected fuel surcharges and the standard diesel price. Trucking companies pay much more per gallon but also generate less profit from fuel surcharges.
Rising diesel prices and the expense of international shipping have significantly impacted the transportation business. STT Logistics Group is aware that, with all of these difficulties, worrying about properly transporting your equipment is the last thing you want to do. That’s where we come in; we’re here to secure the best rates for you and ensure a safe delivery of your cargo. Partnering with us means you can dedicate your time to revenue generation while we take care of the rest on your behalf. Contact us today to get a quote.