Subscribe to our free, weekly email newsletter!


Diesel prices fall 0.4 cents to $3.95 per gallon

By Jeff Berman, Group News Editor
June 21, 2011

On the heels of the first weekly increase since the week of May 2, when the price per gallon of diesel hit $4.124, the average price per gallon dipped 0.4 cents to $3.95 per gallon, according to the Department of Energy’s Energy Information Administration (EIA).

The price per gallon for diesel has fallen a cumulative 17.4 cents since hitting $4.124 per gallon the week of May 2. On an annual basis, the price per gallon of diesel is up 98.9 cents.

Oil barrel prices are currently trading at $93.60 on the New York Mercantile Exchange, according to media reports. As LM has reported, the price has been dropping in recent weeks due to concerns about renewed stalling in the global economy.

Even with the recent decline of diesel prices, shippers and carriers remain concerned about the price of diesel and oil. While many have indicated that prices at current levels are still digestible, they cautioned that could quickly change depending on how quickly prices rise with summer driving season officially here.

Shippers are bracing for prolonged pain at the pump, according to the results of a recent Logistics Management reader survey of roughly 250 logistics, supply chain, and transportation executives.

The survey revealed that 25 percent felt average fuel surcharges were more than 20 percent above base rates and another 19 percent say average fuel surcharges were 11-15 percent above base rates. 18 percent said average fuel surcharges were in the 16-20 percent range above base rates, with 16 percent of respondents at 6-10 percent and 13 percent saying average fuel surcharges were 1-5 percent above base rates. Another 8 percent said they were unsure of how much their average fuel surcharge was above base rates.

Several shippers have told LM that the current rise in fuel costs is slower and more sustained than it was when prices shot up rapidly during the summer of 2008, forcing shippers to approach the current situation differently.

With fuel prices, for the most part seeing steady gains, the focus from a supply chain management perspective—for shippers—is more on utilization and efficiency by doing things like driving empty miles out of transportation networks.

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

An export rebound continues to build steam at the Port of Oakland, as it also continues to ease drayage congestion with innovative logistics management strategies.

Asset-light transportation and logistics services provider Roadrunner Transportation Systems Inc. (RRTS) said this week it has expanded its less-than-truckload (LTL) service through the addition of outbound service from Vancouver, British Columbia. RRTS said that this service will open the western half of Canada to its LTL Freight’s outbound service.

Carloads saw a 16.1 percent, or 180,598, annual decline at 944,339, and intermodal containers and trailers in April at 1,972,828, were off 11.8 percent or 264,327 carloads annually.

Total intermodal volume movements—at 4,156,999—were up 2.0 percent annually and outpaced the 0.3 percent annual growth rate from the fourth quarter of 2015.

Industry analysts contend that the Teamsters are not declaring a strike outright, but rather, voting to give their leadership permission for such an action.

Article Topics

News · Trucking · Transportation · Diesel Prices · All topics

Comments

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


© Copyright 2016 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA