This is the lowest ranking for Fuel Supply/Fuel Prices since the TII survey began in 2005. Unfortunately for the trucking industry, the lower ranking appears to have more to do with less price volatility than lower prices. In fact, in 2012 average weekly diesel prices were the highest in the history of the TII survey and have remained high through 2013 (the average weekly price for the first 40 weeks of 2013 is only 0.4% lower compared to the same period in 2012).
While volatility has been reduced somewhat, the high price of fuel continues to impact the industry. ATRI’s 2013 update to the Operational Costs of Trucking report found that fuel and oil was the single highest motor carrier cost center, even more costly than driver wages and benefits combined.
Proposed Strategies:
a) Advocate for measures that limit financial market speculation on energy which can cause price fluctuations/volatility. This strategy is preferred by a plurality of respondents (42.8%). While prices have stabilized over the past several months, many in the industry are still cognizant of the impact that wildly fluctuating diesel prices can have on operations.
b) Continue to support expanded use of domestic energy sources to improve the reliability of our energy supply. A key strategy for dealing with price volatility is to ensure a stable supply of fuel. Since fuel and oil costs constitute 39% of motor carrier operational costs, energy price volatility can significantly impact the financial health of the trucking industry. This strategy is preferred by 42.8% of respondents.
c) Support effective technologies and proven methods for improving fuel efficiency that could lower fuel costs. A number of respondents (14.5%) prefer addressing the fuel issue from the demand-side of the equation. As vehicles become more fuel efficient, carriers will need less fuel and will therefore be less affected by fluctuations in prices.
