Posted 4/7/2024, 12:30:00 AM
Diesel Costs Soar while Trucking Rates Lag, Squeezing Carrier Margins
- Retail diesel costs up 33% since 2019 but truckload rates only up 16%, squeezing carriers
- Higher costs for fuel, drivers, maintenance make 2022 environment worse than 2019 for carriers
- Contract rates ~25% above spot market, but risky if close to spot levels when market flips
- Operating authorities decreasing, sign of market moving toward equilibrium
- Fuel a top carrier cost, so limited ability to pass on even larger increases squeezes margins