Summary:
The U.S. national average diesel price dropped by 3.7 cents to $3.651 per gallon, marking the seventh consecutive week of decline. Since mid-July, diesel prices have fallen by 21.4 cents. Year-over-year, the price is down by 82.4 cents, providing some relief to the trucking and logistics industries. The most significant drops occurred in the Rocky Mountain and West Coast less California subregions.

News for You

Diesel prices in the U.S. have continued to fall, with the national average dropping by 3.7 cents to $3.651 per gallon, according to the latest data from the Energy Information Administration (EIA). This marks the seventh week in a row that diesel prices have declined, with a total reduction of 21.4 cents since mid-July. Compared to this time last year, the price is down by 82.4 cents per gallon, offering some financial relief to the trucking and logistics industries that have been dealing with high fuel costs.

The biggest year-over-year decreases were seen in the Rocky Mountain region and the West Coast less California subregion, where prices fell by $1.05 and $1.08 per gallon, respectively.

Diesel prices fell across all ten regions tracked by the EIA, ranging from a decrease of 5 cents in New England to 1.3 cents in the West Coast less California subregion. Here’s a closer look at how prices changed in various regions:

• East Coast (PADD 1): Prices fell by 3.2 cents to $3.725 per gallon. New England saw the steepest drop in this region, with a 5-cent decrease to $3.969 per gallon.
• Midwest (PADD 2): This region recorded the largest decrease this week, with prices dropping by 4.7 cents to $3.627 per gallon.
• Gulf Coast (PADD 3): Known for having the lowest diesel prices in the country, this region saw a decrease of 3.8 cents, bringing the price to $3.317 per gallon.
• Rocky Mountain (PADD 4): Prices fell by 4.2 cents to $3.608 per gallon, maintaining relatively stable pricing compared to other regions.
• West Coast (PADD 5): The average price dropped by 2.2 cents to $4.272 per gallon, with California experiencing a 3.2-cent decline, bringing the price to $4.707 per gallon.

The ongoing decline in diesel prices is due to various factors, including decreased demand, stable crude oil prices, and seasonal changes in fuel consumption. These trends have eased some of the financial pressure on trucking companies and other businesses that rely heavily on diesel fuel.

How This Affects You: Truck Drivers

For truck drivers and those in the trucking industry, the recent drop in diesel prices is welcome news. Lower fuel costs mean reduced expenses for operators, especially owner-operators and small trucking businesses that are heavily impacted by fuel prices. Over the past two years, high diesel costs have been a significant challenge, so this decline can help improve profitability and reduce overall operating costs.

Additionally, the drop in diesel prices can make it more affordable for companies to maintain their fleets and could lead to lower transportation costs for goods. This might also positively impact the broader economy by helping to keep the cost of goods down, which is beneficial for consumers and businesses alike.

As a truck driver, staying updated on fuel price trends can help you plan your routes and fueling stops to maximize your savings. While fuel prices can be unpredictable, the current downward trend provides a bit of breathing room for the industry.

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The North America Council for Freight Efficiency (NACFE) and RMI have introduced their newest program, Run on Less – Messy Middle, aimed at enhancing sustainability measures in the heavy-duty trucking industry. This initiative specifically addresses the long-haul return-to-base and over-the-road operations, which, while constituting only 9% of total trucking activity, are responsible for an alarming 48% of emissions from heavy-duty vehicles, as detailed in a report by the National Renewable Energy Laboratory (NREL).

This latest chapter of the Run on Less series focuses on identifying and showcasing viable methods for decarbonizing this niche within the trucking sector. “Each Run has tried to mirror market issues,” says Mike Roeth, executive director at NACFE. “This Run is no different. We are calling it Run on Less – Messy Middle because today’s fleet managers have a variety of options when it comes to what will power their vehicles. While other market segments have proven to be a good fit for battery electric vehicles, we are still looking for the best solutions for the long-haul segment of the industry now and in the future.”

As the fifth event in the Run on Less initiative, which began in 2017 highlighting diesel truck fuel efficiency, this event shifts focus to Class 8 trucks with a gross vehicle weight over 33,001 pounds, whether in sleeper or day cab configurations. Approximately ten fleets will participate, experimenting with various technologies that include battery electric, hydrogen fuel cells, renewable natural gas, bio-diesel, and hybrid systems, along with energy efficiency enhancements tailored to each fuel type.

Roeth underscores the significance of this initiative, stating, “There is a great deal of work being done in the long-haul segment of the market to decarbonize it. This upcoming Run will give us the opportunity to showcase the realities of that market to help fleets make more informed decisions now and in the future about which powertrain options make the most sense for their Class 8 long-haul routes.”

The event is set for September 2025 and will feature NACFE’s pre-Run Bootcamp series, with metrics and dashboards available on the Run on Less website. Throughout the event, NACFE intends to share results and updates via social media platforms alongside blogs and videos, culminating in a detailed report due for publication in early 2026. “We are excited to begin vetting fleets to participate in the Run and to sign on sponsors to help underwrite the cost of the Run,” Roeth added. “All of us at NACFE and RMI are excited to be working on the fifth freight efficiency demonstration in the Run on Less series and look forward to bringing some clarity to the Messy Middle of long-haul trucking.”

Source: The Trucker

Summary:
The American Trucking Associations (ATA) reported a 0.3% increase in its For-Hire Truck Tonnage Index from June to July, reaching 113.7. However, this was still 0.9% lower than July 2023. The increase is partly due to strong import activity at West Coast ports and slight growth in retail sales and factory output. Despite the rise, the overall freight market continues to face challenges as the economy slows.

News for You

The trucking industry saw a small increase in freight tonnage in July, according to the latest report from the American Trucking Associations (ATA). The For-Hire Truck Tonnage Index rose by 0.3% from June to 113.7, although it was still 0.9% lower compared to July 2023. This is part of a broader trend where most months since February 2023 have shown year-over-year declines in freight tonnage.

ATA Chief Economist Bob Costello noted that while July wasn’t a particularly strong month, there are signs that the truck freight market may be gradually improving. Some of the recent gains are likely due to increased import activity, especially at West Coast ports like Los Angeles and Long Beach, as companies aim to get ahead of a potential dockworker strike in September. With the holiday season approaching, many companies are prioritizing early shipments, which has boosted demand for both rail and trucking services.

The Cass Freight Index, another measure of freight activity, reported a 1.1% year-over-year decline in shipments but saw a 3% increase from June. This indicates that while demand for goods is growing slowly, the pressure on for-hire shipments is easing as the addition of private fleet capacity slows.

The Logistics Managers’ Index (LMI), which measures the overall health of the logistics industry, registered a reading of 56.5 for July, up slightly from 55.3 in June. A reading above 50 suggests expansion in the industry, and although this marks the eighth consecutive month of growth, the rate of expansion remains below the long-term average.

Rajeev Dhawan, director of the Economic Forecasting Center at Georgia State University, pointed out that the uptick in tonnage at U.S. ports is likely temporary and driven by companies wanting to avoid disruptions from a potential strike. He noted that while this increase in activity is beneficial in the short term, the overall economy still shows signs of slowing.

Zac Rogers, associate professor of supply chain management at Colorado State University and author of the LMI report, commented that achieving a stable economic recovery is challenging amid current uncertainties. He likened it to “trying to land an airplane on a very small aircraft carrier in rough seas,” emphasizing the difficulties facing the logistics sector as it navigates ongoing challenges.

How This Affects You: Truck Drivers

If you’re a truck driver, the slight rise in freight tonnage reported by the ATA could signal a modest improvement in demand for trucking services. This might lead to more opportunities for loads, especially in areas with strong import activity, like the West Coast. However, the industry is still dealing with broader economic challenges, and demand growth remains slow.

Staying aware of market conditions can help you make informed decisions about routes and loads. As companies bring in shipments earlier to avoid potential disruptions, like a dockworker strike, there may be a short-term increase in freight demand. Keep an eye on updates from logistics and trucking reports to adjust your strategies accordingly.

Overall, while the market is showing some positive signs, the path to a full recovery remains uncertain. Being flexible and prepared for changing conditions can help you navigate this evolving landscape.

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#FreightTonnage #ATAReport #TruckingIndustry #Logistics #EconomicOutlook #SupplyChain #TruckDrivers #FreightMarket #LogisticsManagersIndex #FreightDemand