![]() ![]() "It's being based on fear and the unknown." Phil Flynn, an oil analyst at the Price Futures Group, said he sees no immediate decrease in prices, at least not ones caused by sudden peace in Ukraine or an increase in oil production. A drop in consumer sentiment could impact truckers quickly, if consumers slow down shopping to save money. and world economies concerns oil analysts. The general effect of high oil prices on the U.S. Hunt reported $3.5 billion in revenue in Q4, up 28% from a year before. Hunt's chief commercial officer and EVP for people and human resources, during the company's investor call on Jan. 19.īut the increase in fuel charges has tended to bump up general revenues for big fleets, especially with e-commerce still booming within the economic recovery. ![]() "As an organization, we see tremendous pent-up demand to convert highway freight to intermodal with elevated truck rates, the tight labor market, higher fuel prices and a 60% improvement in carbon efficiency intermodal offers versus truck," said Shelley Simpson, J.B. ![]() Hunt, fuel prices were putting pressure on shippers to consider intermodal over trucks. However, some executives spoke of trends they saw partially caused by higher fuel costs. But those surcharges do not cover empty miles, and those fuel costs can squeeze margins of profitability.ĭiesel prices were already rising through 2021, and, for the bigger fleets, the latest earnings cycle didn't show a major effect in Q4. It's going to affect members."įor now, fleets in general will pass the costs on to shippers via fuel surcharges, said Tim Denoyer, ACT Research vice president and senior analyst. "It will hit the small guys hard," said Lewie Pugh, executive vice president of OOIDA. CHAINDIVE PS4 HOW TOThe recent surge in diesel prices has the phones ringing at the Owner-Operator Independent Drivers Association, with drivers asking how to attach fuel surcharges to their per-mile rates. ATRI found that miles per gallon stalled in 2018 from 2017, remaining at 6.4 mpg.īig fleets usually have pricing deals with fuel suppliers, and they have fuel surcharges written into contracts. Fuel costs a truck 43.3 cents per mile, or about 24% of a truck's expenses, according to the American Transportation Research Institute's November 2019 report.įleets are usually keen to squeeze every mile they can out of a tank of diesel, and they do this by buying newer fuel-efficient trucks and adding features, such as wheel covers, that cut down on air resistance. CHAINDIVE PS4 DRIVERNot surprisingly, prices in California are significantly higher than the norm: Diesel is $5.077 per gallon in the Golden State.įuel is the second-largest expense for a fleet, after driver wages. Gasoline is also shooting up, at $3.608 per gallon, up 7.8 cents from the previous week, and up 89.7 cents from the comparable week a year ago. ![]()
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