WRGB- Higher diesel prices are squeezing trucking companies in New York and could soon translate into higher prices for consumers as transportation costs rise.
Robert Benuzzi, transportation manager for Adirondack Beverage and a board member of the Trucking Association of New York, said diesel prices are the highest he has seen them.
He said the issue is straightforward: nearly everything that moves from manufacturers to stores requires transportation, and much of it moves by truck.
As fuel costs climb, trucking companies face a choice of absorbing the added expense or passing it along. Benuzzi said his company has been absorbing some of the higher costs for its customers, but he said that approach has limits.
“You charge more percentage of every load,” Benuzzi said. “Because of your fuel cost.”
“When you figure that all out and do the math, you’ve got to charge more or you’re not making any money,” he said. “Nobody can afford to work for free.”
Benuzzi also pushed back on perceptions about trucking profits. “And unfortunately in this industry everybody sees us and thinks we make all kinds of money. We don’t,” he said.
According to AAA New York, the current average diesel price is $6.34 a gallon. A month ago, the average was $5.61, and a year ago it was $3.91.
Benuzzi said the impact is compounded by fuel efficiency: most trucks get only about six or seven miles per gallon, so even small increases at the pump add up quickly. And because truckers cross state lines, they may pay well above the average in some places, in some cases closer to $9 a gallon.
Even if oil prices fall, Benuzzi said drivers and businesses should not expect immediate relief at the pump.
“And even if oil dropped today, you’re not gonna see a relief at the pump for months,” he said. “So that’s the bottom line.”
He said fuel costs are affecting more than trucking, noting that “anything that has a motor and requires fuel is feeling the effects right now,” including airplanes, which can drive up flight costs.
Benuzzi also warned that higher energy costs could continue to hit households.
“Winter is coming,” he said, adding, “I locked my oil in for my house six months ago. And that was even at a high price. But I’m glad I did.”