Transportation Trends In The Bay Area
Oakland trucking companies hoping to avoid a recent fuel tax increase in California are now preparing themselves for its effects.
The tax, which will cost drivers at least 15 cents per gallon, was implemented in August as part of the California Global Warming Solutions Act. This law seeks to allow companies to purchase permits to exceed greenhouse gas emissions, but it will now apply to individuals driving for personal or professional purposes.
How the Fuel Tax Increase Will Affect Truckers
Independent and corporate trucking services already face significant fuel costs, with California prices averaging over $4 per gallon. As fuel prices rise, this increases the price of each move, which either reduces profits or results in a higher invoice for the client.
Trucking represents a vital part of the Golden State’s economy, so it remains to be seen how this new tax and its ramifications for industry will impact California at large.
Why Rail Presents a Compelling Alternative
For customers seeking cost-effective Bay Area transportation services, rail shipping continues to be a very efficient and eco-friendly option. Although rail has not yet replaced the need for skilled truckers, it could prove to be a lower-cost alternative for some companies in light of the new tax.