Subscribe to our free, weekly email newsletter!


Diesel prices hit highest level since April, says Energy Information Administration

By Jeff Berman, Group News Editor
September 05, 2012

Diesel prices moved up 3.8 cents to $4.127 per gallon, according to the Department of Energy’s Energy Information Administration (EIA).

This marks the ninth straight week diesel prices have increased and the third straight week the price per gallon has been above the $4 mark, which had not previously been reached since hitting $4.026 per gallon the week of May 14. This week’s price matches the previous high of $4.127 per gallon from the week of April 16.

Prior to these recent gains, diesel prices sank for 12 straight weeks, falling a cumulative 50 cents during that period. On an annual basis, the price per gallon of diesel is up 25.9 cents.

In its recently updated short-term energy outlook, the EIA is calling for diesel prices to average $3.84 per gallon in 2012 and $3.62 in 2013 (down from previous estimates of $3.90 and $3.87, respectively), with WTI crude oil expected to hit $93.90 per barrel in 2012 and $90.25 in 2013 (down from previous estimates of $96.80 and $97.00, respectively).

Regardless of the fluctuation in diesel prices, shippers are cognizant of the impact diesel prices can have on their bottom line—for better or worse. And they continue to be proactive on that front, too, by taking steps to reduce mileage and transit lengths when possible as well as cut down on empty miles.

What’s more, shippers have repeatedly told LM they are constantly monitoring fuel prices, as they relate to freight rates and the overall costs of doing business.

And 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.

Crude oil barrel prices on the New York Mercantile Exchange were $94.42 at press time. The Associated Press reported that signs that manufacturing around the globe is weakening, which suggests a drop in fuel demand, weighed on oil prices.

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

Following the lead of its Congressional Colleagues in the House of Representatives, the United States Senate yesterday approved a measure geared to keep federal surface transportation funding intact through the end of December with a nearly $11 billion stopgap fix.

XPO Logistics announced second quarter earnings and the acquisition of two companies, New Breed Logistics, a non asset-based 3PL focusing in contract logistics services, for roughly $615 million, and Atlantic Central Logistics, a 3PL provider of last-mile logistics services, for roughly $36.5 million.

The report, entitled “Outlook for the Domestic Transport and Logistics Market in 2H14 and Beyond,” takes the view that strong freight levels in the second quarter have left trucking companies in a good position: one in which they need to come up with new plans to handle rising demand. But even with that positive momentum afloat, the report observes that there are some familiar challenges intact, such as a lack of qualified drivers and the regulatory drag from the new hours-of-service rules that took effect in July 2013.

Flags of Convenience are a fact of life in the commercial maritime trade, but several European political action groups are worried that they will pose a threat to the Continent’s air cargo industry.

For May, which is the most recent month for which data is available, the SCI is -7.5, following April’s -7.5. FTR said this reading represents a still-tight capacity environment, as utilization rates hover between 98 percent and 99 percent.

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