Probably no surprise to most readers that prices for goods and services are increasing. It seems weekly prices go up. The tight labor market, with many workers opting to stay home instead of going back to work, has employers scrambling to fill positions. To compete for employees; higher pay and incentives are often needed leading to increased labor costs for many companies. Trucking companies fiercely compete for the best drivers. Often these added costs are passed on to consumers.

Another factor leading to higher costs is the reduced capacity in the trucking industry. Many trucking companies went out of business in 2020 and capacity is limited. Shippers are having a tougher time finding qualified carriers leading to higher rates to move their products.

These factors are a cause but the increase in fuel prices is having the most damaging effect on consumers. The chart below shows data compiled by the U.S. Energy Information Administration (EIA) for average diesel fuel prices nationwide. It is hard to believe but since November 2020 diesel fuel prices have increased 41%.  This has damaging effect on transportation companies locked into contracts with large customers where the fuel adjustment does not cover rapidly escalating fuel prices. For trucking companies to survive these costs must be passed along creating a more devastating effect on the economy and hard-working Americans.

Weekly U.S. No 2 Diesel Ultra Low Sulfur (0-15 ppm) Retail Prices (Dollars per Gallon)

 

 

 

 

 

Where are these increasing fuel prices taking the U.S. economy? Time will tell. It is a scenario that is trending in the wrong direction. Remember we are all in this together and everyone is feeling the pain.

At Full Tilt Transportation and Full Tilt Logistics, we are continuing to fight the battle in challenging times. Our customer service is the best in the industry with well-trained competent employees with excellent interpersonal skills. Our prices are competitive, and our reliability is something other freight companies strive for. For the best bang for the shrinking buck contact Full Tilt today for all your transportation needs.

Probably no surprise to most readers that prices for goods and services are increasing. It seems weekly prices go up. The tight labor market, with many workers opting to stay home instead of going back to work, has employers scrambling to fill positions. To compete for employees; higher pay and incentives are often needed leading… Read More


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