Posted by: rbmcarriers | November 14, 2008

Diesel prices fall below 2007 levels

Diesel prices fall below 2007 levels

We search for “interesting” trucking news on a daily basis, but with economy as of late has not really produced anything exciting to blog about.  The trucking industry does not need another blog repeating rather gloomy forecasts.  Hence, we have been silent.

But Today’s Trucking reporting the low price of diesel below 2007, needs a comment.

RBM Carriers is a privately owned trucking company and along with many companies, the insurgence of brokers is an issue that has to be dealt with on a daily basis.  When prices of diesel was high, many brokers felt the pinch and trucking was becoming once again the responsibility of people who know the business, instead of someone who wants to make a quick dollar.  Now with the price of diesel falling to a price we have not seen for sometime, the brokers are BACK!!  Of course we don’t want prices to rise again forcing us to raise our shipping costs but surely there has to be a medium somewhere along the line!

For your information, here is the report form Today’s Trucking:

Diesel prices continue their headlong retreat in the U.S., falling 20 cents last week to a national average of $3.088, according to the U.S. Energy Information Administration.

The national average is now 21.5 cents less than it was a year ago. The highest prices were found in the New England region while the lowest average was in the Midwest.

The average price of a gallon of diesel has now fallen $1.676, or 35 percent, since hitting a record high of $4.764 a gallon in mid-July.

However, energy industry experts warn that the lower prices are temporary.

Prices, they note, are falling because of reduced demand and reduced economic activity, not because we have increased supply or increased energy efficiency, said BP Chief Executive Tony Hayward at a conference recently.

Here Canada, prices are also coming down. Newfoundland and remote northern parts of Quebec are seeing average diesel prices around $1.25 a liter — a stark difference from the highs of over $1.60 in parts of The Rock this past June.

Southern Ontario averages hover at about $1.05, while southern Alberta prices are about the same, despite traditionally being the lowest in the country.

A month-long diesel shortage in Alberta and Saskatchewan is being blamed for the higher prices these last few weeks, although there are now reports that fuel supplies are slowly normalizing.

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