Subscribe to our free, weekly email newsletter!


Diesel prices fall for sixth straight week, reports EIA

By Staff
August 12, 2014

Diesel prices saw a decline for the sixth straight week, according to the Department of Energy’s Energy Information Administration (EIA).

The average price per gallon of diesel dropped 1 cent to $3.843 per gallon, which is the lowest price since hitting $3.844 the week of November 25, 2013.

In the previous five weeks, diesel saw declines of 0.5 cents, 1.1 cents, 2.5 cents, 1.9 cents, and 0.7 cents, respectively, for a cumulative 7.7 cent decline.

Since the week of March 10, which saw prices at $4.021 per gallon, weekly diesel average prices have fallen in 18 of the subsequent 22 weeks, and diesel has fallen 17.8 cents since March 10.

On an annual basis, the current average price of diesel is down 5.3 cents. On a year-to-date basis going back to January 6, the average price has dipped 6.7 cents.

In its recently-issued Short Term Energy Outlook, the EIA pegged the average price for diesel prices in 2014 at $3.90 and $3.78 in 2015, with crude oil at $98.67 per barrel in 2014 and $90.92 in 2015.

As LM has reported, with prices continuing to hover around the $4 per gallon mark adjusting budgets is only part of the solution when it comes to dealing—and living—with fuel price fluctuation, according to shippers.

In some cases they look for hedge diesel prices when it is applicable, shippers have told LM. This involves committing to a certain price on fuel at which pay to a certain rate at which point it is frozen at that rate for the shipper. And it also requires shippers to be focused on keeping their drivers on the road as much they can and being profitable and
not in detention.

Other steps being taken by shippers to combat high fuel prices include things like focusing more on utilization and efficiency by doing things like driving empty miles out of transportation networks.

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

For the fourth quarter of 2014, UPS said it anticipates adjusted diluted earnings per share of roughly $1.25, with full-year 2014 adjusted diluted earnings per share at $4.75, which represents a 3.9 percent annual gain over 2013’s adjusted earnings per share of $4.57, with full-year 2014 diluted earnings pegged at around $3.28 per share, which is 28.9 percent below 2013’s $4.61.

In recently issued research and data, JLL pointed out that its market data indicates rents are on the rise, with companies on the hunt for warehouse and distribution space.

U.S. Carloads were up 0.3 percent annually at 290,963, and intermodal at 260,893 containers and trailers dropped 2.4 percent compared to the same week last year.

Researchers say the ships are operating in international waters with a "worrying lack" of regulation, adding that they could pose a threat to regional peace and stability.

Compared to November, spot market freight volume was up 3.0 percent, according to the DAT North American Freight Index.

Article Topics

News · EIA · Diesel Prices · 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