Diesel Prices Surge, Putting Fresh Pressure on Trucking Companies and Freight Rates

Diesel Prices Surge, Putting Fresh Pressure on Trucking Companies and Freight Rates

By Staff Writer

WASHINGTON — Diesel prices are surging across the United States, putting a fresh squeeze on trucking companies and raising concerns that higher transportation costs will eventually reach businesses and consumers.

The U.S. national average for on-highway diesel climbed to $5.967 per gallon for the week ending Sept. 7, according to the U.S. Energy Information Administration, up from $5.599 the previous week. U.S. Energy Information Administration+1

The increase comes as global fuel markets remain under pressure from geopolitical disruptions, constrained inventories and refinery problems.

Reuters reported that the U.S. national average subsequently moved above $6 per gallon, marking the first time the national average had crossed that threshold. Reuters

For an industry that burns millions of gallons of diesel every day, the increase is more than a number on a fuel-price board.

It is becoming a major operating cost.

Trucking Fleets Feel the Impact

Fuel is one of the largest variable expenses for trucking companies, making diesel prices particularly important to carriers operating on thin margins.

When fuel costs rise sharply, carriers have several options: absorb some of the additional expense, increase freight rates, negotiate fuel surcharges or reduce other operating costs.

None of those choices is easy.

Smaller trucking companies can be particularly exposed because they may have less purchasing power, smaller cash reserves and less ability to immediately pass higher fuel costs on to customers.

For owner-operators, the impact can be even more direct.

Every additional dollar spent at the pump comes out of the revenue generated by a load.

Fuel Surcharges Are Rising

Fuel surcharges are becoming an increasingly important tool for carriers attempting to protect margins from volatile diesel prices.

The surcharge is generally added to a freight bill separately from the base transportation rate and adjusted according to changes in diesel prices.

The Canadian National Railway's current surcharge schedules illustrate how quickly higher diesel costs can flow through transportation pricing. CN's September 2026 intermodal surcharge rates were calculated using an average U.S. on-highway diesel price of $5.599 per gallon, while its October schedule uses $5.462 for the applicable monthly calculation. CN

For trucking companies, however, the timing of those adjustments can create a cash-flow problem.

Carriers pay for fuel immediately.

Fuel surcharges may be calculated on a different schedule, meaning a rapidly rising diesel market can temporarily leave carriers carrying the additional cost.

The Cost Doesn't Stop at the Truck

Higher diesel prices can eventually work their way through the entire supply chain.

Trucks move food, manufactured goods, construction materials, consumer products and countless other commodities.

When the cost of moving those goods increases, shippers face higher transportation expenses.

Those companies can then decide whether to absorb the increase, raise prices or pass additional costs to customers.

That makes diesel prices an important factor in broader inflation.

Recent reporting has already linked higher transportation fuel costs to increasing pressure across supply chains, particularly for goods that require significant transportation or refrigeration. AP News+1

Small Carriers Face a Tougher Calculation

Large trucking companies may have more tools available to manage fuel volatility.

They can negotiate fuel programs, purchase fuel at discounted rates, optimize routes across large networks and use sophisticated fleet-management software to reduce unnecessary mileage.

Smaller carriers have fewer levers to pull.

An owner-operator driving thousands of miles each week cannot simply stop buying diesel when prices rise.

The truck still has to move.

That leaves independent operators with a difficult calculation: accept loads at existing rates and absorb higher fuel costs, negotiate higher rates or reject freight that no longer makes economic sense.

Every Mile Matters

When diesel approaches $6 a gallon, fuel efficiency becomes more than an environmental or operational consideration.

It becomes a financial survival issue.

Reducing unnecessary idling, improving routing, maintaining proper tire pressure and avoiding empty miles can all become more valuable when fuel prices are elevated.

Technology is also playing a larger role.

Fleet-management systems can analyze routes, vehicle performance and driver behavior to identify opportunities to reduce fuel consumption.

Even relatively small efficiency improvements can add up across a large fleet.

Refinery Disruptions Add to the Pressure

The diesel market is being squeezed by more than crude oil prices.

Global supply disruptions have affected refined fuel markets, while refinery outages are adding another layer of uncertainty.

On Sept. 14, Exxon Mobil temporarily shut down its Joliet refinery in Illinois after a power outage. The refinery can produce roughly 11 million gallons of fuel per day and is an important supplier to the U.S. Midwest. Reuters

The outage comes at a particularly sensitive time, with diesel inventories already under pressure.

Reuters reported that U.S. diesel inventories were about 13% below the five-year average, while diesel refining margins had reached historically high levels. Reuters

For trucking companies, that means the market could remain volatile even if crude oil prices stabilize.

Trucking Rates Could Come Under Pressure

The biggest question for the freight industry is what happens next.

If diesel prices remain elevated, carriers will likely push harder for higher fuel surcharges and freight rates.

Shippers, meanwhile, will face pressure to control transportation costs at a time when many are already dealing with higher expenses elsewhere in their supply chains.

The result could be increased tension between carriers and customers over who absorbs the additional fuel expense.

For some carriers, particularly smaller operators, the issue could become a matter of survival.

Consumers May Eventually Feel the Difference

The impact of expensive diesel does not end at the freight terminal.

Nearly everything that moves by truck has a transportation cost attached to it.

Food, building materials, furniture, packages and retail products can all be affected when the cost of moving freight increases.

The impact will not necessarily appear immediately.

Contracts, fuel-surcharge formulas and competitive pressures can delay the effect.

But if diesel prices remain elevated for an extended period, higher transportation costs can gradually work their way through the economy.

The Road Ahead

There is little trucking companies can do to control the price of diesel itself.

They can, however, control how efficiently they use it.

That means carriers are likely to put greater emphasis on route optimization, fuel-efficient equipment, preventative maintenance and fuel-surcharge agreements as long as prices remain high.

The immediate concern is not simply that diesel has become more expensive.

It is how long the increase lasts.

A short-lived price spike can be absorbed or passed through the freight system.

A prolonged period of expensive diesel is different.

It can reshape freight rates, squeeze carrier margins and ultimately increase the cost of moving goods across North America.

For truckers, the calculation is already becoming painfully simple:

The more diesel costs, the more every mile has to count.