• Home
  • Politics
  • Health
  • World
  • Business
  • Finance
  • Tech
  • More
    • Sports
    • Entertainment
    • Lifestyle
What's Hot

How Smart Mattresses Improve Sleep Quality For Couples

May 9, 2025

OpenAI CEO Warns: ‘Not A Huge Amount Of Time’ Until China Overpowers American AI

May 9, 2025

Short and Funny Sayings for a Happy Summer with Friends

May 9, 2025
Facebook Twitter Instagram
  • Contact
  • Privacy Policy
  • Terms & Conditions
Friday, May 9
Patriot Now NewsPatriot Now News
  • Home
  • Politics

    Security video shows brazen sexual assault of California woman by homeless man

    October 24, 2023

    Woman makes disturbing discovery after her boyfriend chases away home intruder who stabbed him

    October 24, 2023

    Poll finds Americans overwhelmingly support Israel’s war on Hamas, but younger Americans defend Hamas

    October 24, 2023

    Off-duty pilot charged with 83 counts of attempted murder after allegedly trying to shut off engines midflight on Alaska Airlines

    October 23, 2023

    Leaked audio of Shelia Jackson Lee abusively cursing staffer

    October 22, 2023
  • Health

    Disparities In Cataract Care Are A Sorry Sight

    October 16, 2023

    Vaccine Stocks—Including Pfizer, Moderna, BioNTech And Novavax—Slide Amid Plummeting Demand

    October 16, 2023

    Long-term steroid use should be a last resort

    October 16, 2023

    Rite Aid Files For Bankruptcy With More ‘Underperforming Stores’ To Close

    October 16, 2023

    Who’s Still Dying From Complications Related To Covid-19?

    October 16, 2023
  • World

    New York Democrat Dan Goldman Accuses ‘Conservatives in the South’ of Holding Rallies with ‘Swastikas’

    October 13, 2023

    IDF Ret. Major General Describes Rushing to Save Son, Granddaughter During Hamas Invasion

    October 13, 2023

    Black Lives Matter Group Deletes Tweet Showing Support for Hamas 

    October 13, 2023

    AOC Denounces NYC Rally Cheering Hamas Terrorism: ‘Unacceptable’

    October 13, 2023

    L.A. Prosecutors Call Out Soros-Backed Gascón for Silence on Israel

    October 13, 2023
  • Business

    OpenAI CEO Warns: ‘Not A Huge Amount Of Time’ Until China Overpowers American AI

    May 9, 2025

    Trump Announces First Post-Tariff Trade Deal

    May 8, 2025

    Electric Vehicle Sales Nosedive As GOP Takes Buzzsaw To Biden’s Mandate

    May 7, 2025

    Tyson Foods Announces It Will Bend The Knee To Trump Admin’s New Rules

    May 7, 2025

    Federal Reserve Holds Interest Rates Steady Despite Pressure From Trump

    May 7, 2025
  • Finance

    Ending China’s De Minimis Exception Brings 3 Benefits for Americans

    April 17, 2025

    The Trump Tariff Shock Should Push Indonesia to Reform Its Economy

    April 17, 2025

    Tariff Talks an Opportunity to Reinvigorate the Japan-US Alliance

    April 17, 2025

    How China’s Companies Are Responding to the US Trade War

    April 16, 2025

    The US Flip-flop Over H20 Chip Restrictions 

    April 16, 2025
  • Tech

    Cruz Confronts Zuckerberg on Pointless Warning for Child Porn Searches

    February 2, 2024

    FTX Abandons Plans to Relaunch Crypto Exchange, Commits to Full Repayment of Customers and Creditors

    February 2, 2024

    Elon Musk Proposes Tesla Reincorporates in Texas After Delaware Judge Voids Pay Package

    February 2, 2024

    Tesla’s Elon Musk Tops Disney’s Bob Iger as Most Overrated Chief Executive

    February 2, 2024

    Mark Zuckerberg’s Wealth Grew $84 Billion in 2023 as Pedophiles Target Children on Facebook, Instagram

    February 2, 2024
  • More
    • Sports
    • Entertainment
    • Lifestyle
Patriot Now NewsPatriot Now News
Home»Finance»Fuel price jump boosts rates but threatens trucking capacity
Finance

Fuel price jump boosts rates but threatens trucking capacity

October 1, 2023No Comments4 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Fuel price jump boosts rates but threatens trucking capacity
Share
Facebook Twitter LinkedIn Pinterest Email
Photo: Jim Allen - FreightWaves

Photo: Jim Allen – FreightWaves

Chart of the Week: National Truckload Index, National Truckload Index Linehaul Only, Diesel Truck Stop Fuel Price – USA SONAR: NTI.USA, NTIL.USA, DTS.USA

The average retail price of diesel (DTS), the primary fuel for Class 8 trucks, has increased 16% since the end of July — the largest and fastest increase since October of last year. The rapid jump in fuel costs is masking the fact the trucking market is still deteriorating.

Rising diesel prices have propped up truckload spot rates in September, masking their decline toward the end of the quarter. Looking at the average spot rate for dry van loads represented by the National Truckload Index (NTI), rates increased around Labor Day and are looking to finish the month ahead of where they started.

Removing the total estimated cost of fuel from that number (NTIL), spot rates are actually trending lower, which is unusual for the end of the third quarter. This could accelerate the amount of capacity exiting the market, shrinking the timeline companies have to enjoy a historically loose transportation environment.

Demand has been on the rise over the past several months. The total number of tenders, shipper requests for truckload capacity, are up ~15% over April. The rise in demand has had a negligible impact on carrier availability as national rejection rates (OTRI) remain in a deflationary zone below 4%.

Capacity has tightened slightly over this period, but not to the point where there has been significant upward pressure on rates. Typically sustained OTRI values above 6% are required to have a long-term impact on rates.

See also  Biden Keeps Troops in Niger as Coup Threatens to Spark Regional War

The takeaway is that there is still not enough freight to support the available capacity and sharply rising fuel prices will only make the environment more challenging for carriers, especially ones who rely on spot market volumes.

It is difficult to pass fuel costs along quickly on the spot market since carriers are bidding against one another on the open market. Many shippers expect last week’s rate to be the baseline. In a loose capacity environment, it is extremely difficult to raise rates, even when your costs are rising.

Contract freight is also exposed to sharply rising fuel costs as retail prices tend to move much slower than the wholesale or rack prices that many larger fleet fuel purchases are based on. The spread (FUELS) between retail (DTS) and rack (ULSDR) has shrunk significantly since June.

The bottom line is that carrier costs have risen quickly in a market that does not allow for price increases. This will exacerbate the existing trend of carrier exits, which was already expected to jump this winter as it seasonally does.

For shippers, it is only one more reason to prepare for a tighter market in 2024. Even if demand does not hold, the rate of capacity’s exodus will eventually catch up.

About the Chart of the Week

The FreightWaves Chart of the Week is a chart selection from SONAR that provides an interesting data point to describe the state of the freight markets. A chart is chosen from thousands of potential charts on SONAR to help participants visualize the freight market in real time. Each week a Market Expert will post a chart, along with commentary, live on the front page. After that, the Chart of the Week will be archived on FreightWaves.com for future reference.

See also  LeVar Burton ‘Threatens Violence Against Women’ While Smearing Moms for Liberty in National Book Awards Speech

SONAR aggregates data from hundreds of sources, presenting the data in charts and maps and providing commentary on what freight market experts want to know about the industry in real time.

The FreightWaves data science and product teams are releasing new datasets each week and enhancing the client experience.

To request a SONAR demo, click here.

The post Fuel price jump boosts rates but threatens trucking capacity appeared first on FreightWaves.

boosts Capacity fuel jump Price rates Threatens Trucking
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Federal Reserve Holds Interest Rates Steady Despite Pressure From Trump

May 7, 2025

Amazon Reportedly Floats Plan To Show Tariff Price Increases To Shoppers — Karoline Leavitt Calls It ‘Hostile’ Move

April 29, 2025

Ending China’s De Minimis Exception Brings 3 Benefits for Americans

April 17, 2025

The Trump Tariff Shock Should Push Indonesia to Reform Its Economy

April 17, 2025
Add A Comment

Leave A Reply Cancel Reply

Top Posts

Kim Mulkey, a Colorful and Divisive Coach, Wins Another Title

April 3, 2023

‘Basketball Wives’ Star Brittish Williams Pleads Guilty to $446k in Fraud

May 25, 2023

Here’s The Domino That Could Kickstart Another Banking Crisis

February 11, 2024

What Should You Do After Getting Into A Major Accident?

May 1, 2023
Don't Miss

How Smart Mattresses Improve Sleep Quality For Couples

Lifestyle May 9, 2025

Sharing a bed with your partner can be romantic… until it’s not. One of you…

OpenAI CEO Warns: ‘Not A Huge Amount Of Time’ Until China Overpowers American AI

May 9, 2025

Short and Funny Sayings for a Happy Summer with Friends

May 9, 2025

Trump Announces First Post-Tariff Trade Deal

May 8, 2025
About
About

This is your World, Tech, Health, Entertainment and Sports website. We provide the latest breaking news straight from the News industry.

We're social. Connect with us:

Facebook Twitter Instagram Pinterest
Categories
  • Business (4,111)
  • Entertainment (4,220)
  • Finance (3,202)
  • Health (1,938)
  • Lifestyle (1,628)
  • Politics (3,084)
  • Sports (4,036)
  • Tech (2,006)
  • Uncategorized (4)
  • World (3,944)
Our Picks

SEC says PIMCO to pay $9 million to settle 2 enforcement actions

June 17, 2023

Post-strike Hollywood rushes to get film, TV sets humming

November 11, 2023

Am I Boring? 21 Ways To Be A More Exciting

May 2, 2023
Popular Posts

How Smart Mattresses Improve Sleep Quality For Couples

May 9, 2025

OpenAI CEO Warns: ‘Not A Huge Amount Of Time’ Until China Overpowers American AI

May 9, 2025

Short and Funny Sayings for a Happy Summer with Friends

May 9, 2025
© 2025 Patriotnownews.com - All rights reserved.
  • Contact
  • Privacy Policy
  • Terms & Conditions

Type above and press Enter to search. Press Esc to cancel.