Tag Archives: fuel surcharges

Trucking costs rise as US freight traffic grows – but the momentum is slowing

Recent data show that trucking costs are still rising, but not as fast as before.

One interesting fact is the decline in Midwest trucking volume. Auto makers have cut production by 30%, and the Midwest is struggling economically. This means less demand for trucking services.

But overall, truckload shipment volumes were still up slightly, continuing the trend.

This article has some nice numbers which define the trend. It would be nice to see a graph of the history of some of the numbers, like the average fuel charges. These are surcharges for fuel that trucking companies add to freight invoices because diesel fuel is elevated in price beyond some ‘norm’ they have decided they ought to pay.

By Ian Putzger in Toronto 21/10/2021

Trucking costs rise as US freight traffic grows – but the momentum is slowing – The Loadstar
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Are carriers boosting low-sulphur fuel surcharges to make up for low rates?

This story is a follow up to one I did a couple of weeks ago.  Fuel surcharges are varying wildly. A consultant found that there’s a wide disparity, the rate rationale is not very transparent, and rates vary even within alliances.   Conditions like this lead to confusion and annoyance among customers, especially smaller shippers.  I expect 3PLs will also be annoyed, but they will be figuring out how to explain the surcharges or where to hide them in their reselling agreements.  It doesn’t make for great credibility among the ocean carriers.

 

logovia Are carriers boosting low-sulphur fuel surcharges to make up for low rates? – The Loadstar