Subscribe to our free, weekly email newsletter!


Diesel prices are up for the third straight week

By Jeff Berman, Group News Editor
July 24, 2012

On the heels of a 12-week run which saw the price per gallon of diesel fall a cumulative 50 cents, diesel prices are up for the third straight week, according to the Department of Energy’s Energy Information Administration (EIA).

The average price per gallon increased 8.8 cents to $3.783 per gallon. Prices over the last three weeks have risen by a cumulative 13.5 cents. Based on EIA data, this nearly 9 cent hike is the single largest weekly price increase since the week of February 13, when prices rose 8.7 cents to $3.943 per gallon.

In its recently updated short-term energy outlook, the EIA is calling for diesel prices to average $3.90 per gallon in 2012 and $3.87 in 2013 (down from previous estimates of $4.06 and $4.03, respectively), with oil expected to hit $96.80 in 2012 and $97.00 in 2013 (down from previous estimates of $104.12 and $103.75, respectively).

Even with low prices for diesel, shippers continue to keep a watchful eye on fuel prices and are taking steps to reduce mileage and cut down on empty miles. This was made clear at last month’s eyefortransport 3PL Summit in Chicago. Many shippers told LM that they are constantly monitoring fuel prices, as they relate to freight rates and the overall costs of doing business.

And as previously reported by LM, shippers continue to take steps to minimize the impact of fluctuating fuel costs. Over the years, they have maintained that this is imperative as higher diesel prices have the potential to hinder growth and increase operating costs, which will, in turn, force them to raise rates and offset the increased prices to consumers.

But even with recent increases, shippers have gotten some pricing relief with the cost per gallon of diesel at relatively low levels still, especially when compared to a year ago. 

An April conference call hosted by Stifel Nicolaus last, which featured Tom O’Brien CEO, TravelCenters of America and Petro Stopping Centers and Mark Hazelwood Executive Vice President, Pilot Flying J Travel, noted that “diesel fuel price will trend higher, perhaps more quickly and with more volatility than oil prices, as diesel is in great demand around the world,” adding that [t]he demand for highway diesel fuel in the U.S. has dropped by 25%+ since 2007 due to a variety of factors.”

About the Author

Jeff Berman headshot
Jeff Berman
Group News Editor

Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

The PMI, the ISM’s index to measure growth, increased 1.8 percent to 57.1 in July. This is 1.8 percent higher than the 12-month average of 55.3. The PMI has grown in 18 of the last 20 months, with economic activity in the manufacturing sector expanding for the last 14 months as the overall economy was up for the 62nd consecutive month.

YRC Worldwide, whose regional and long-haul units provide the second-largest LTL capacity in the trucking industry, narrowed its second-quarter loss to $4.9 million on $1.32 billion revenue, compared with $15.1 million loss on $1.24 billion revenue in the year-ago quarter.

With NFL training camps in full swing, it stands to reason that Congress must be replete with football fans, given how it basically has elected to punt on federal transportation funding yet again, with the Senate yesterday signing off on a ten-month bill to keep federal surface transportation funding intact through May 2015 through a nearly $11 billion stopgap measure.

Carload volumes were up 4.3 percent at 306,988, and intermodal volume for the week ending July 26 was up 3.3 percent at 264,809

Lyon, France-based Norbert Dentressangle, a $5.5 billion global third-party logistics (3PL) services provider focused on global logistics, transport, ocean, and air services, said today it has acquired Des Moines, Iowa-based Jacobson Companies, a value-added warehousing (VAW) company, for $750 million from private equity firm Oak Hill Capital Partners.

Article Topics

News · EIA · Diesel Prices · Diesel · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA