Good day,
The price of diesel fuel jumped last week, rising 6.3 cents per gallon to $2.882. The increase follows a rise in oil prices and a 20-cent jump in fuel taxes in California, that went into effect on Nov. 1.
The Department of Energy said a price of a gallon of diesel is now 41.2 cents higher than a year ago.
A barrel of oil is now trading above $57. In California, the price of diesel jumped from $3.185 for the week ending Oct. 30 to $3.541 for the week ending Nov. 6. That is 70 cents higher than a year ago.
All regions of the country saw increases last week, with the East Coast and Gulf Coast posting 3-cent increases to $2.848 and $2.668, respectively. The Midwest saw a 5 cent rise to $2.861 while the Rocky Mountain region posted a 2-cent increase to climb to $2.965. The West Coast, minus California, also saw a 5-cent increase.
Did you know?
The first combined quarterly report from the Knight-Swift Transportation merger showed revenue of $521.6M and profits of $25.5M before adjusting for charges related to the merger, which brought down earnings to $3.9M or 4 cents per share.
Quotable:
“Shippers are in a tough position right now. We have known for some time that the trucking industry has been operating with very little excess capacity. However, the weak pricing environment masked that phenomenon for the last year. Hurricanes Harvey and Irma exposed shippers to this new reality. There just wasn’t enough excess capacity to deal with spikes, and the result was a significant spot market pricing gain that persisted through early October.”
– Jonathan Starks, FTR COO
In other news:
Despite earnings hit, YRCW adding new equipment
Hurricanes hit LTL carrier YRCW’s earnings hard, but that is not stopping it from investing in new equipment. The company expects to turn over 25% of its fleet by next year since 2015. (Logistics Management)
Workhorse begins testing of drone-equipped vans
Workhorse has started testing electric vans with drones in last-mile delivery service. (Fleet Owner)
Chanje unveils electric vans
Chinese-startup Chanje officially unveiled its electric van, which Ryder will distribute, service and support. The van will be available in key California markers as well as NYC. (CCJ)
Truckers leverage social media to stop ELD mandate
A group of independent truckers has taken to social media hoping to get President Trump to stop the ELD mandate. (Trucks.com)
What’s it like to have Amazon call your city home?
As Amazon looks for a second headquarters, it’s time to look at what happened to Seattle as the company grew its employee base. (Supply Chain Brain)
Final Thoughts
Last week, California levied new fuel taxes on gas and diesel. The state added a 12-cent increase in the gasoline tax and a 20-cent increase in diesel fuel taxes. What impact did it have on fuel prices? According to EIA, a gallon of gasoline in California climbed nearly 3 cents last week to $2.714. Diesel, though, saw a nearly 30-cent increase, from $3.185 for the week ending Oct. 30 to $3.541 for the week ending Nov. 6. Maybe there were other factors at play, but the optics of this looks bad for fuel retailers.
Stay up-to-date with the latest commentary and insights on FreightTech and the impact to the markets by subscribing.
Hammer down everyone!
