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   Establish Home > Feeling the Squeeze - Increasing diesel fuel prices effecting your transportation budget





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Feeling the Squeeze - Increasing diesel fuel prices effecting your transportation budget

The higher cost in diesel fuel has made the fuel surcharge a more significant factor and a higher percentage of transportation budgets. Since 2006, the motor carrier market has experienced diesel fuel costs ranging from approximately $2.50 to $3.50 per gallon (source: http://eia.doe.gov). This in turn can mean a 14 to 24 percent in fuel surcharge.

Diesel fuel prices follow the crude oil industry. Currently the outlook looks rather bleak as the prices for crude oil remain soaring, and the world demand for distillate fuels remains high.

With high diesel fuel prices, companies are anticipating higher transportation budgets. However, there are ways to alleviate some of the fuel surcharge cost. A sound agreement with motor carriers or parcel carriers will usually result in lower costs.

To determine if you have the best agreement you should benchmark your rates and accessorial charges for your lanes. When the diesel fuel prices remain high, knowing how your agreement compares can help improve your bottom line.

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