Whether or not you work in the trucking or transportation industry, chances are you’re at least aware of the recent surge in gas prices. One of the more controversial topics as of late, countless drivers have vented their frustrations at gas reaching that of outrageous prices, especially when inflation has already caused great financial hardship for many Americans. While many industries have been affected by the likes of inflation and rising gas prices, there’s no doubt that the trucking industry has been dealt a significant blow. In today’s blog, we’ll be discussing how gas prices came to be so high, and how it continues to affect the trucking industry. If that sounds interesting, keep reading below!
How Prices Rose
Similar to recent inflation, the cause for high gas prices began can be mostly traced to the COVID-19 pandemic, which has caused a wide range of economic problems for both America and the world. As the pandemic began, and Americans stayed home, demand for gas quickly stalled. In response to this, oil-producing organizations and nations such as OPEC and Russia made hefty cuts to their production. Then, once vaccine rollouts began, and Americans felt safer moving and traveling in their cars, demand sharply increased, surpassing that of the demand.
In addition to COVID-related problems, international conflict has worsened the situation. The recent intensification of the Russian-Ukrainian War has led to a major spike in gas prices. According to CBS News, Benchmark U.S. crude oil rose $3.31 to $109.33 a barrel March 11, while Brent crude rose $3.34 to $112.67 a barrel. President Biden announced a national ban on Russian oil and gas, which may also contribute to the rise in price.
How it Affects the Trucking Industry
In an industry that is inherently reliant on fuel, there’s no doubt that the trucking industry will feel the full effects of this crisis. Truckers can expect a need to readjust their budgets, allocating more money towards fuel. This issue has even led a number of trucking companies to find alternate streams of revenue – if your company is really struggling financially, then this might be something to consider. Lastly, truckers are encouraged to find ways to partner with companies or warehouses, which can help them exercise more control over expenses and budgeting.
Work With Freight Checkers To Stay In The Know!
Curious about how our platform can help reduce Fraud, Identity theft & increase accountability in the trucking industry? Sign up today to get up-to-date information on brokers, shippers, and carriers throughout North America. Contact us today for additional information on how to get started!