Higher fuel prices not only impact trucking industry, but also retailers

Oil prices have skyrocketed in the last few months due to civil unrest in Libya, among other factors. As a result, the cost of diesel and gasoline have increased dramatically, which has impacted the trucking industry greatly.

For retailers, higher energy costs are beginning to affect business from two primary angles. For instance, higher energy prices cut into discretionary consumer spending, Business Insider reports.

Secondly, the higher prices factor into higher manufacturing and distributing costs, which require trucking companies to raise their transportation price to offset the costs. As such, retailers may resort to seeking other ways to move their freight such as using rail lines.

Experts say that as the fuel prices increase many trucking companies will have to either accept the lower profit margins as a result of higher transportation costs or raise prices for consumers. Freight-hauling businesses may wish to enroll their employees in online truck driver training courses to help them stay abreast on the current changes in the industry.

According to the U.S. Energy Information Administration, the average diesel price across the U.S. is $4.11 per gallon, which represents a $1.03 increase from last year.

By Andie Martin

Higher fuel prices not only impact trucking industry, but also retailers

Monday, April 25th, 2011