Diesel Climbs: What Will Happen to Transportation Rates?

Posted by PLS Logistics June 7, 2016 at 8:30 AM

The price of diesel fuel will play a heightened role in transportation rates in the next couple of years. Fuel costs are always an important indicator of over-the-road (OTR) shipping costs, but a perfect storm of events will make diesel prices more important than ever before.

As of June 2016, diesel fuel is $2.382 per gallon on average –a high for the year. Fuel prices are expected to rise for the rest of 2016 and throughout 2017. Under normal circumstances, this would lead to rate increases due to higher fuel surcharges, but the next few years in the freight industry are far from normal, and a few different outcomes are possible.

Obstacles in Transportation

To see the impact of diesel prices on transportation rates, it’s first important to understand the many challenges facing OTR carriers. These obstacles all affect efficiency and profitability for trucking companies, consequently affecting rates.

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Market Update: FedEx Fuel Surcharge Increase a Sign of What’s to Come?

Posted by PLS Logistics October 8, 2015 at 11:00 AM

Because of low oil prices, fuel surcharges are relatively low, which helps ease the cost of transportation for shippers. Current carrier pricing is better than it has been in years, but this trend won’t last.

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Should Fuel Surcharges Cost Me This Much? Infographic

Posted by PLS Logistics April 20, 2015 at 11:00 AM

Fuel prices are constantly fluctuating.  Do your fuel surcharges reflect this?  Don’t know?  This infographic will explain everything you need to know about fuel surcharges and how a 3PL can make sure you’re paying a fair price.

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Why Fuel Surcharges Don’t Match Cheap Gas Prices

Posted by PLS Logistics March 3, 2015 at 8:00 AM

The cost of oil has been falling and so have gas prices; reaching lows that haven’t been seen in over a decade.  Even though diesel fuel hasn’t seen price drops like regular gasoline, carriers are still seeing a difference in their bottom line.  However, they are not profiting as you would expect. 

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