High gasoline prices can hurt the average person by making them pay more at the pump, but high diesel prices can hurt more than the truckers who pay for their diesel. Indeed, truckers and the trucking industry are a vital part of the supply chain, and high diesel prices can affect the freight that truckers deliver. Here’s a look at the trucking industry, how truckers are loading at a loss due to high diesel prices, and what that could mean for the supply chain.
The effects of high gasoline and diesel prices
Oil prices have recently reached very high levels and as a result, petroleum products, which include gasoline and diesel, have also seen price increases. The result has been a lot of pain at the pumps, as hundreds of millions of people are forced to pay these higher prices or choose not to drive at all. In some places, governments have offered gas tax rebates and exemptions to relieve drivers.
That being said, while some people can reduce their driving time to save gas, this is not possible for many people who depend on their vehicle. This is especially true for Uber drivers or truckers, as fuel prices directly affect how much they can earn with their work. In fact, some truckers have been hit so hard by high diesel prices that they are losing money just working.
Some truckers take loads at a loss due to high diesel prices
According to Business Insider, diesel prices have skyrocketed, with the price soaring 76% in the last year alone. Currently, diesel prices are at or near record highs. As of this writing, the national average price for a gallon of diesel is around $5.80, and obviously it will cost more in some places and less in others.
Either way, truckers across the country will be forced to pay a lot more money just to fill up. Some carriers, including a small carrier in Maryland, have been forced to take loads at a loss because of these fuel prices. This Maryland carrier doesn’t have to take loads at a loss, but it’s either that or the truckers are out of work.
Also, like many other industries, brokers and carriers in the trucking industry will try to offset fuel costs with a surcharge. This surcharge is paid by anyone who needs something shipped. However, truckers often don’t see the cost breakdown, so there have been instances where a company keeps the fuel surcharge for itself.
This could lead to a collapse of the trucking industry as a whole
This is not the only problem plaguing the trucking industry, as the industry has been experiencing a shortage of drivers for some time now. With high diesel prices making it harder for truckers to make ends meet, many truckers may eventually leave the industry. This may lead to another supply chain crisis, but it’s not the end.
Somehow someone has to pay those high diesel prices, and that’s usually the consumer. As a result, high diesel prices can turn into high prices on the shelves. It could also get worse, because according to Business Insider, a Texas trucker went viral saying, “If something drastic doesn’t change in the next few weeks/months, I promise you’ll see empty shelves everywhere you see it.” “
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