Spot rates might be up by almost a dollar a mile from the same time last year, but a new all-time record high for diesel prices during the most recent week is keeping trucking companies’ profits suppressed.
During the week leading up to Labor Day, diesel’s national average surged 36.8 cents to $5.97 per gallon, blowing past the previous $5.81/gallon record set in the summer of 2022, based on Energy Information Administration data.
The spike comes amid low U.S. inventories, with Mideast oil outflow hampered by the conflict in Iran and petroleum exports from the U.S. to areas all around the world in high demand. One analyst warned just last week about risk of an energy crisis within the next six months.
As noted, average diesel prices sit now more than $2/gal. higher than the same week a year ago.
All regions across the U.S. saw sizable increases during the most recent week, led by a whopping 54.6-cent jump in California and a 44.2-cent increase in the West Coast less California region. California's average prices are quickly approaching an astronomical $8/gal. With last week’s increase, the state’s average is now $7.76/gal.
The cheapest fuel in the nation can be found in the Lower Atlantic region at $5.61/gal.
Fuel prices in other regions, according to EIA:
- New England -- $5.99
- Central Atlantic -- $6.05
- Midwest -- $5.95
- Gulf Coast -- $5.75
- Rocky Mountain -- $5.81
- West Coast less California -- $6.31
ProMiles’ diesel averages during the same week jumped 13.9 cents to $5.72/gal. nationwide. According to the ProMiles Fuel Surcharge Index, the most expensive diesel can be found in California at $7.56/gal., and the cheapest along the Gulf Coast at $5.46/gal.
[Related: Is a real diesel shortage brewing? FTR analysts assess economic risk]
Rates break recent downward trend ahead of Labor Day
Truckstop.com and FTR Transportation Intelligence reported some good news from last week on the spot rates front, with total spot rates across all equipment types increasing by 9 cents/mile over the previous week to $3.22/mile, offsetting some of the dramatic fuel spike for owner-operators.
Total spot rates are up 39% over the same week a year ago.
[Related: Overdrive's Load Profit Analyzer: Ways to assess rates, costs]
The bad news is that historically, the current week that includes Labor Day usually sees spot rates fall for all three principal equipment types.
As shown in the chart, dry van rates jumped just more than 9 cents for the largest gain in nine weeks to $2.71/mile. Reefer added just over 13 cents after soaring close to 16 cents during the previous week, hitting $3.60/mile. Flatbed rates were up for the first time in 12 weeks, rising nearly 3 cents week over week to $3.31/mile.
Average all-in rates in the DAT One system also rose -- dry van 6 cents to $2.95/mile, reefer 9 cents to $3.54/mile, and flatbed 4 cents to $3.54/mile.
DAT Market Analyst Dean Croke said that despite some capacity returning to the market last week, rates held near their record highs, largely due to fuel’s increase the week prior. “That added roughly 3 cents a mile to the average dry van rate, 4 cents to reefer, and 4 cents to flatbed,” Croke said. “Fuel accounted for more than half the van increase, and for all of flatbed’s, whose linehaul rate was unchanged.”
[Related: Roadcheck rates are in with spot market on record run]
