We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC.
    • Podcast
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Dispatches
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC.
    • Podcast
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Dispatches
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
Home » Truckers, shippers drive into holiday with lowest diesel prices in four years
newsworthy

Truckers, shippers drive into holiday with lowest diesel prices in four years

December 23, 2014
DC Velocity Staff
No Comments

The trucking supply chain will wake up Christmas morning with a big-time stocking stuffer over the fireplace: the lowest diesel fuel prices in four years.

Average diesel prices hit an average of $3.28 a gallon as of yesterday's reading, the Department of Energy's Energy Information Administration (EIA) reported yesterday. That is a near 14-cent-a-gallon drop from the week before, and a whopping 59-cent-a-gallon decline from the same period a year ago, according to EIA data. EIA publishes weekly reports on gasoline and diesel prices as a national average and broken out over regions of the country.

Diesel prices in the Midwest showed the largest week-over-week drop of all regions, coming in at a decline of nearly 18 cents a gallon, EIA data showed. That was followed by the Rocky Mountain states, where prices fell more than 16 cents a gallon. The smallest decline, 4 cents a gallon, was reported in the New England states. The lowest pump price was reported in the Gulf Coast region at $3.17 per gallon, according to EIA data.

The last time average nationwide diesel prices were this low was in the week ended Dec. 20, 2010, when the price was slightly more than $3.24 a gallon.

Fuel is either the largest or second-largest expense for truckers; fuel and labor interchange with each other depending on current fuel prices. For decent-size carriers with hundreds of trucks, a drop of this magnitude is significant. Noel Perry, senior consultant and managing director for consultancy FTR, said a moderate-to-large truck fleet saves .13 cents per loaded mile for every 1-cent decline in diesel prices.

A typical owner-operator who drives 110,000 miles per year and whose truck gets about 6 miles per gallon would save about $183 annually for each one-cent drop in price, according to estimates from the Owner-Operator Independent Drivers Association (OOIDA), the trade group representing independent contractors. OOIDA's membership is around 150,000.

Crude oil prices account for about half of the cost of a gallon of diesel charged at the pump. The rest comes from federal and state excise taxes, and refining, distribution, and marketing expenses. Oil prices have plunged in recent months, with a West Texas Intermediate (WTI) crude priced as of yesterday at $55.26 a barrel, a $44.06 per barrel decline from the same period a year ago, according to EIA data.

Transportation Trucking Truckload Less-than-Truckload
  • Related Articles

    Diesel prices fall to less than $2.01 a gallon, lowest price in 10 years, government data show

    National diesel prices drop below $2 a gallon for first time in 11 years

    Diesel prices climb to highest levels in nearly three years

Recent Articles by DC Velocity Staff

U.S. Xpress makes “significant investment” in self-driving tech vendor

Truckload carrier predicts challenging year ahead for industry

Train kept a rollin’

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Cold chain giant Lineage Logistics buys its own rail operator

  • Outlook 2021: What’s in store for logistics supply chain?

  • Cushman & Wakefield Brokers Sale of 170 Acres plus Lease for 1MSF Build-to-Suit for Home Improvement Retailer in Commerce City, CO.

  • Thriving in the long haul: interview with Colin Yankee

  • Capacity challenges will continue in 2021

Now Playing on DCV-TV

2mw 01 18 21 thumb

LTL Carriers Using Yield Management Techniques to Identify New Accessorial Charges

DCV-TV 4: Viewer Contributed
As we head into 2021, shippers are not too optimistic about negotiating rates with their carriers. The reason for this, as highlighted in the three CODE RED Webcasts we've hosted with our friends from CSCMP and NASSTRAC, is that in today's transportation marketplace, shippers are operating in uncharted waters. With...

FEATURED WHITE PAPERS

  • Proven Benefits: A Compendium of Slotting Optimization Success Snapshots

  • Bridging Information Gaps in Dock and Yard Operations

  • How Intelligent Sensor Solutions Turn Data Into Action

  • Order picking Solutions: Understanding Your Options

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2021. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing