Small Truckers Bear Brunt of 50% Diesel Price Jump
More than 3 million U.S. truckers moving essential goods are bearing the brunt of
surging fuel costs, as diesel prices have jumped by $1.89, or roughly 50 percent, since
the onset of the Iran war, even as freight demand weakens.
Already strained by a prolonged freight recession, a crackdown on immigrant drivers,
and tariff-related pressures, small trucking companies — which haul about 70 percent of
all freight in the United States — are taking the hardest hit. Data from DAT Freight &
Analytics showed that 18 percent of more than 540 trucking firms have halted
operations.
Across the industry, 44 percent of companies have become more selective about load
weights, while 45 percent reported driving fewer miles.
As of Monday, U.S. fleets were spending an average of $5.52 per gallon on diesel,
surpassing the previous all-time high of $5.50 recorded during the Russia-Ukraine
conflict in June 2022, according to fleet management technology provider Samsara.
The spike in fuel prices has eroded profits for most small carriers and owner-operators
between December and February, while others are operating just slightly above
breakeven, according to Department of Transportation principal analyst Dean Croke in a
recent market update.
Meanwhile, major shippers such as FedEx, UPS, and Amazon have begun passing
higher fuel costs on to consumers through temporary surcharges.
Experts warned that relief may not be imminent, as diesel prices in key logistics hubs,
including California and Texas, have reached record highs. The disruption of shipping
routes due to the Strait of Hormuz blockade has further intensified supply pressures.
