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The Impact of Fuel Rates on Trucking Companies

It’s a no-brainer that an industry that relies on fuel is directly impacted by fuel prices. When the price of fuel increases, it’s painful. When the price of fuel is good, it’s still too high.

What Happens When Fuel Prices Soar?

An increase in fuel prices could mean fewer finances to cover taking on new loads. This means fewer jobs and clients, which means lower sales. With customers already being conscious of the costs of shipping their freight, nickel-and-diming over fuel costs complicates the process even further.

shipping and transportaion fuel costs

Whether it’s short term or long term, good or bad, truckers are directly affected by changes in fuel prices.

What About Low Fuel Prices?

On the other side, a decrease in fuel prices is undoubtedly beneficial for shippers and trucking freight brokers. Based on the US Department of Transportation’s accounts, rail transports use less fuel compared to the trucking industry. Hence, the former is more ideal for clients who want to pay less for shipping and don’t mind extra wait time. But when the economy allows for the trucking industry to take advantage of lower fuels costs, the difference in shipping fuel and prices between rail and truck decrease. This allows trucking companies to attract clients with shipping costs that are comparable to rail but with delivery times that are much quicker.

When fuel prices are lower, freight companies and transportation brokerages can roll the extra financial padding into savings or to help scale their operations more quickly. Whatever you can do to satisfy customers and earn their trust will
help ensure future success.