Diesel Costs & The Trucking Industry

Trucking companies of all sizes are feeling the bite of high fuel costs, especially owner-operators.

While most Americans are gasping at gas prices, truckers are dealing with the price of diesel. Diesel, which cost less than $4 per gallon last month, has jumped to a record-high average of $6.029 per gallon — an increase slamming small transport companies.

Most owner-operators agree that if prices stay this way, many small businesses will be out of business. The cost of filling a truck that can hold up to 200 gallons of diesel means profits have evaporated, and hauls that were profitable are no longer.

Diesel in Virginia is above $5 per gallon, but in California, it's more than $6. Even as prices for regular gas stabilized this week, diesel prices are expected to creep higher.

The steep prices are trickling down through the economy. Fuel surcharges are increasingly affecting the prices of everything from groceries to building supplies. According to the American Trucking Association, more than 70% of freight is transported via trucks.

Big fleets, small fleets, they all use diesel. Nearly everything when we go to a store or buy it online comes on a truck. That means I think all of us, as consumers, can expect higher prices generally.

Fundblock Capital is committed to providing much-needed working capital to the American trucking industry so they may bridge cash-flow gaps and adjust operations to sustain and grow their businesses.