Record-high diesel prices 'putting a pinch on fleets’ across the US: Trucking industry official
The national average price for diesel is $5.13, just shy of the record: AAA
Trucking Association of New York President on impact of record-high diesel prices
Trucking Association of New York President Kendra Hems notes that the industry consumes about 45 billion gallons of fuel annually and that the vast majority of that is diesel.
Trucking Association of New York President Kendra Hems noted on Tuesday that record-high diesel prices are "putting a pinch on fleets across the country."
Hems made the comment on "Mornings with Maria" on Tuesday as the national average price for diesel was $5.13, which is just shy of the record, according to AAA.
The highest recorded average price for diesel is $5.14 reached on March 12 of this year. The association noted that the national average price for diesel on Tuesday shot up by $1.12 compared to one month ago and by $2.03 compared to the same time last year.
Earlier this month President Biden announced a ban on Russian oil, gas and energy imports to the U.S. in an effort to weaken Russian President Vladimir Putin amid the war between Russia and Ukraine. The move has contributed to higher energy prices.
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Hems told host Maria Bartiromo that smaller carriers, which she says account for 91% of fleets across the country, are feeling the "pinch" the most.
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"To put it in context, the trucking industry consumes about 45 billion gallons of fuel annually, about 80% of that is diesel and fuel is the second-highest expense, second only to labor for trucking companies," she told Bartiromo.
(istock / iStock)
"So it’s really putting a pinch on fleets across the country, in particular smaller carriers and it should be known that 91% of fleets across the U.S. are small carriers operating six or fewer trucks."
When asked how long she expects prices and inflation to stay elevated, Hems said, "We’ve seen a little bit of a drop in the last couple weeks, but I don’t know that that’s going to continue."
Record-high gas prices 'really putting a pinch on fleets across the country': Trucking Assoc. of NY pres
Trucking Association of New York President Kendra Hems argues smaller carriers, which she says account for 91% of fleets across the country, are feeling the 'pinch' the most.
"So unfortunately, from what we’ve heard thus far, [there is] no end in sight," she continued, adding that "we’re not even into the peak travel season yet so, unfortunately, we do expect that these high prices are going to remain."
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| USO | UNITED STATES OIL FUND - USD ACC | 73.20 | +1.18 | +1.64% |
| BNO | UNITED STATES BRENT OIL FUND - USD ACC | 29.57 | +0.45 | +1.55% |
Oil prices dropped on Tuesday to settle at their lowest level in more than one week, as a worsening COVID-19 outbreak in China threatened to impact energy demand and as hopes for progress in peace talks between Russia and Ukraine alleviated some worries about risks to supply.
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West Texas Intermediate crude for May delivery dropped about 6% on Tuesday morning, trading around the $100 a barrel level. Brent crude, the global benchmark, was hovering at $106 a barrel.