June Diesel Prices Drop, But Auto Shippers Still Struggling
In the first few weeks of June, diesel prices began to drop. Not by much, but hey, two cents a gallon isn’t nothing, right? And while June diesel prices have dropped after a pretty steady climb, they’re a lot higher than they were last year – 74.2 cents higher, to be exact, according to CCJ Digital.
74.2 cents. That’s insane. That’s…that’s a lot of money right there.
As you can probably expect, prices in California are highest, while prices in the Gulf Coast region are lowest. But what does this mean for car shipping services?
What June diesel prices means for you and your vehicle shipment
We like to keep up on diesel prices and general trucking news. It’s important to understand the state of the industry and how it will affect our customers’ shipments. Usually, diesel prices fluctuating isn’t that big of a deal. But It’s been a while since diesel prices have been this high, and the industry is feeling the pressure.
Usually when diesel prices go up, prices along the longest routes go up a bit. A one or two cent swing in price of fuel usually isn’t enough to dramatically alter auto transport pricing. But June diesel prices in 2018 being what they are…that’s a huge swing. That’s a massive swing. 74 cents over last year is nothing to scoff at.
To put it in perspective, most car shipping trucks can hold anywhere from 100-400 gallons of diesel fuel. Now, most auto transport trucks also only get about 6-10 miles per gallon. So they’re pretty much filling up once every day, or once every other day, depending on how big their fuel tank is. On a 1500 mile shipment, most trucks are going to have to refill at least once. And if they’re getting a hundred gallons of fuel, at about $3/gallon, well, that’s a lot of money to spend refueling.
The state of auto transport in June 2018
High diesel prices tend to result in logjams, especially in the summer months. Carriers have to make sure they make a profit on the routes that they run, and June is the time of year where prices tend to be in flux as it is. Customer demand is up, but pricing on the broker side hasn’t caught up with the changing prices on the road. Carriers have to charge more in part because of increased demand and part because of an increase in fuel prices.
This time last year we saw a fraction of the total loads needing shipped at this time of year. Right now there’s a lot more demand for carriers than supply. Couple this high demand with high fuel prices, and it’s not surprising we’re seeing price hikes across the map.
There’s plenty of freight moving, don’t get us wrong. It’s not like the industry is at a standstill – quite the opposite, actually. Freight is flying off the loadboards. But new loads are going up even more quickly.
Luckily, most of the companies out there have adjusted their prices accordingly, and things are starting to move along again. But high diesel prices isn’t helping the cause, so if you’re looking for cheap auto shipping services, right now may not be the best time to be looking.
Get affordable auto transport with American Auto Shipping
We can’t guarantee your prices are going to be gangbuster, but we can assure you that they’re priced right if you fill out our free quote form. That’s all it takes to get a free quote and to start on your auto transportation journey. Just fill out our free form, or give us a call at 800-930-7417 to speak to an agent. They can explain more about June diesel prices and prices throughout the year and how they affect your auto transport prices and services. They can also give you great advice about shipping your vehicle and help you find the most cost-effective method of doing so. Don’t wait – use American Auto Shipping to get started on your vehicle transport today.