Oakland Transportation Logistics

What Reduced Gas Prices Means for the Trucking Industry

Oakland Intermodal Services and Many Others Heavily Benefit

With the recent surge in crude oil supplies worldwide, prices at the gas pumps have been steadily declining for the past six months. Many people who were traveling for the holidays rejoiced as automotive transportation costs plummeted in time for family reunions and Christmas parties. However, few people were as happy as those working in the trucking and intermodal services industries.

The American Trucking Association estimates that for every four cent decrease in fuel, the trucking industry saves a little more than a billion dollars. Since 2013, the price of diesel has fallen eighty cents, resulting in exponential industry savings. Logistics managers everywhere have dollar signs in their eyes.

Prior to this recent decline, however, the trucking industry suffered at the pumps; oil prices had been steadily increasing for nearly a decade. Trucking professionals’ wages, compensation, and medical benefits have risen only slowlyor remained stagnantas price increases to shippers have been largely covering the gas increases. What this means for drivers is that the major oil price changes could result in lower fees for shippers, with a percentage of the savings going toward employees’ salaries.

Some employees have looked to 2015 as a year to negotiate pay raises. Over the course of the year, trucking companies stand to save $24 billion due to the expected continuing decline in oil prices. These businesses will face mounting pressure to pay long-term drivers more, especially since the trucking industry is currently experiencing a driver shortage.

Contact Oakland Logistics and San Francisco Trucking Experts

Do you need help with your logistics needs? Please reach out to our team at (510) 632-7112 for a free estimate and detailed consultation. We can improve your efficiency and help you lower transportation costs.