Diesel prices hit their highest point since November of 2008 last week, as the average price nationwide rose to $2.90/gallon. That’s mostly bad news for freight carriers, who have to try to pass those higher costs on to suppliers or see their profits diminish. It’s hard to tell what is “normal” in the fuel market given the volatile nature of fuel prices in the last two years, but things are returning to pre-financial-meltdown levels.
That increase is a measure of economic activity driving fuel prices higher; container shipping traffic is forecasted to grow during 2010. The added amount of container trucking will add to the demand for diesel as we go forward.
Trucking logistics firms will need to look at fuel-saving alternatives in this high-diesel-price environment. Intermodal transport becomes more of a factor, especially if the railroads in an area are electric; they will both be less affected by the increased price of diesel and used what gas they do use more efficiently. Since most ships run on diesel, moving things onto the seas isn’t a huge advantage, although shipping is more fuel-efficient, albeit slower.
If the increase in diesel is deemed to be normal and we’re going to be stuck with these prices, alternative fuels are going to get a big push. Biodiesel will get a long look as a fuel additive at $3/gallon levels, and electric trucks might get more of a push; range is a factor, but if you can make a Porsche muscle-car electric, you’ll have a shot at making a interstate transport truck electric as well.
Sources: http://www.truckinginfo.com/news/news-deta…_category_id=42
http://www.thetrucker.com/News/Stories/201…entinMarch.aspx