Fluctuating fuel prices and the fears that come with reduced supply have become a hot topic in recent history. The rising price of diesel doesn’t only put a strain on the LTL and freight delivery industry, but really every industry. Bottom line: When the price of diesel goes up, the price of everything else goes up with it.
Customers everywhere rely on diesel fuel to get the products they need delivered. Groceries need to be shipped to a local grocery store, materials and textiles need to be shipped to your local furniture store, and the list goes on. The fact of the matter is that the price of diesel is a big deal for all of us. Keep reading for our take here at uShip.
Important Facts About Diesel
It’s nearly impossible to turn on the news without hearing about diesel fuel prices. But unless you work in the LTL or Freight industry, chances are you probably haven’t needed to use it yourself. Most American drivers still prefer gasoline, hybrid, or electric vehicles, even though diesel vehicles have been on the market for years.
So what exactly is going on with diesel that seems to disrupt our whole way of life? Here are a few fast facts to know before diving in deeper:
- The price of diesel has been historically higher than gasoline
- Diesel is the preferred fuel of the LTL and Freight Industry
- Diesel is not a raw material, it needs to be refined
- The refinery process costs more
In comparison to gasoline, diesel is a more efficient fuel for high mileage and large fuel tanks.
Knowing these important diesel facts helps us see the whole picture as we work towards breaking even.
Why Diesel Prices Matter
According to the US Energy Information Administration, on-highway Diesel prices in the US are up 170% compared to this time last year. But while having the numbers is helpful, it’s hard to see how it affects consumers’ daily lives if you’re not working in the Freight industry. The fact of the matter is, inflated prices on all consumer goods can’t start lowering until the price of diesel goes down.
Why Diesel Prices Matter
According to the US Energy Information Administration, on-highway Diesel prices in the US are up 170% compared to this time last year. But while having the numbers is helpful, it’s hard to see how it affects consumers’ daily lives if you’re not working in the Freight industry. The fact of the matter is, inflated prices on all consumer goods can’t start lowering until the price of diesel goes down.
Will the Price of Diesel Ever Go Down?
More than likely, just like the price of most consumer goods, diesel prices will be very difficult to bring back down. The economic boom brought on in 2020 created a demand that the supply chain and diesel refineries are still trying to catch up to. The most reasonable outcome we can hope for in the near future is that the price of diesel stabilizes.
Will the Price of Diesel Ever Go Down?
More than likely, just like the price of most consumer goods, diesel prices will be very difficult to bring back down. The economic boom brought on in 2020 created a demand that the supply chain and diesel refineries are still trying to catch up to. The most reasonable outcome we can hope for in the near future is that the price of diesel stabilizes.
What LTL/Freight Shipping Businesses Can Do
The most successful businesses find greatness in times of struggle. Asas long as your business can adapt, this fuel crisis shouldn’t slow you down. Here are a few tips for how to save money on fuel:
- Consider downsizing your big rigs to cargo vans
- Look into fuel-efficient options for your fleet like 0 emission semis
- Find an LTL Freight Company on uShip and outsource your logistics like a pro
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Abby Ruffier
SEO Content Strategist
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