Record diesel prices hit trucking industry as semi fill-ups reach around $1,500
Lincoln, Neb. (KLKN) — Record-high diesel prices are driving up costs for trucking companies, with a single fill-up for a full-size semi now costing around $1,500.
The national average for diesel is around $6.51 per gallon, while Nebraska’s average is about $6.22 per gallon, according to AAA.
Joe Schulz, owner of Lincoln-based Schulz Logistics, said most full-size semis can hold around 200 to 220 gallons of diesel.
“So I mean, you’re looking at probably $1,500 for a full fill up of a Class 8 full-size semi,” Schulz said.
Schulz Logistics is a freight brokerage that works with trucking companies across the country to move its customers’ freight.
Based on the increase in diesel prices since January, Schulz estimates a typical truck could now spend nearly $40,000 more on fuel over a year at typical annual mileage.
While trucking rates have also increased, Schulz said that does not necessarily mean carriers are seeing significantly higher profits.
“Rates had started to go up last fall and had continued increasing this year,” Schulz said. “But now with the fuel prices climbing, carriers are making record per mile rates, but their profit isn’t that much better.”
Schulz said smaller trucking companies can face an even greater challenge because larger fleets are often able to negotiate fuel discounts based on the amount they purchase.
“The small guys that just have one to 10 trucks, they’re usually paying retail prices,” Schulz said. “As prices are going up, I’ve seen that spread be up to a dollar a gallon. It’s much tougher for the small companies.”
The effects of higher transportation costs may eventually extend beyond trucking companies.
Schulz said there can be a delay as those costs move through the supply chain, but he expects consumers to eventually see higher prices and said there could be shortages of some goods this winter.
“You’ll see prices going up, you’re likely to start seeing some shortages of stuff here this winter, so it absolutely has an impact,” Schulz said.
For now, Schulz said carriers are dealing with fuel prices that have risen sharply since the beginning of the year.
