With the recent worldwide crisis, natural disasters and wars; the economy of all countries around the globe has been suffering a great deal. Undoubtedly, most industries are affected by this phenomenon and therefore, have to look for solutions to the problems, which sometimes include a shortage in personnel, reduction of salaries, and an increase in the prices of their services.
The Trucking industry is one of the most affected with the current escalation of diesel fuel prices. Most representatives from this industry have confirmed that the situation is devastating and is attempting to tear down the economical stability of hundreds of families and relatives of the people that work on truck field.
Related statistics from the American Trucking Association estimate that 1,000 mostly smaller carriers go out of business each time diesel fuel spikes more than 10 cents. The majority of carriers set a fuel cost surcharge to make up for the spiking diesel prices, but sometimes it is more difficult for smaller carriers to require the charge because they cannot afford to lose customers who refused to pay for high fuel prices.
Also, most trucking companies are struggling to keep their adjustments in line with their costs. They say the amount trucking companies are able to recoup often comes in well after the fuel is paid for. Trucking companies confirm that carriers will eventually pass more of the cost to shippers, who will ultimately pass that cost to consumers. The risk and the worry in this part is that, the consumer will resist that increase and the economy will slow down.
Ultimately, the consumer makes the decision if the cost of goods is higher than he is capable or willing to pay. This is the reason why trucking companies are looking at productivity gains to offset some of that cost.
People must remember that the trucking industry is primarily a small-business industry with relatively slim profit margins, but it is still one of the major basis of the U.S. economy. The rapid escalation in the price of diesel fuel is devastating to the trucking industry and will result in failures, lower capital investment and negative employment trends.