Prices for diesel, the fuel type used to power trucks and trains, came in at an all-time high of around $6.31 per gallon on Wednesday, according to AAA<\/a>. Diesel prices have surged more than 70% from a year ago, which analysts attribute to the supply shock from the U.S. war with Iran.<\/a><\/p>\n “We have seen some of the most\u00a0radical\u00a0and\u00a0abnormal\u00a0swings in fuel prices that I think we’ve ever seen,” said Brad Delco, finance chief at trucking company J.B. Hunt<\/a>, at an industry conference hosted by Morgan Stanley. <\/p>\n Delco said to expect a drop in earnings<\/a> between 5% and 10% from the second to third quarter as a result of higher costs. Shares of J.B. Hunt dropped more than 13% in Wednesday’s session, one of the worst days for the stock since going public in 1983.<\/p>\n Stock Chart IconStock chart icon J.B. Hunt, YTD<\/p>\n The Dow Jones Transportation Average<\/a>, a broader gauge of the sector, close to 3% on Wednesday. J.B. Hunt was the biggest loser of the index, which also includes rideshare providers and airlines.<\/p>\n ‘Science fiction’<\/p>\n Those diesel-related price pressures should only intensify in the coming days, warned Patrick De Haan, head of petroleum analysis at price tracker GasBuddy<\/a>.<\/p>\n The national average could eclipse $6.50 in the next two days, De Haan said. Midwest states such as Michigan, Ohio and Illinois may see per-gallon diesel prices touch $7 in the coming days, according to his estimates.<\/p>\n In California, AAA found that the average rate for a gallon of diesel has already surpassed $8. Prices have climbed almost 20% in the last month alone, according to the motor club association’s data.<\/p>\n “We’re talking about $6 diesel, but out here, it’s $8 diesel, we noticed on the way in, which is like science fiction,” said Claude Elkins, chief commercial officer at railway transporter Norfolk Southern<\/a>, on Tuesday at the Morgan Stanley conference held in Laguna Beach, Calif.<\/p>\n Elkins said he keeps a “very cautious eye” and has conversations about what those price levels will “mean for the economy.” The transportation services sector added $1.9 trillion to the U.S. economy in 2024, accounting for more than 6% of the country’s total enhanced gross domestic product, according to the Bureau of Transportation Statistics<\/a>.<\/p>\n “That\u00a0certainly\u00a0is\u00a0something\u00a0that\u00a0we\u00a0have\u00a0to\u00a0keep\u00a0our\u00a0eyes\u00a0open\u00a0to,” Elkins said. “Ultimately, over some period of time, that’s going to be a drag on the consumer out there.”<\/p>\n Stock Chart IconStock chart icon Dow Jones Transportation Average, YTD<\/p>\n To be sure, retail sales climbed 1.2% from July to August despite energy-related inflationary pressures. Excluding spending on autos and gas station, sales grew at their highest level in more than a year.<\/p>\n Still, diesel’s record-setting rise colliding with the fall harvest season means that costs will balloon for producers of crops like corn and wheat, according to Jacob Aiken-Phillips, head of consumer and retail research at Melius Research.<\/p>\n![\"hide](\"https:\/\/static-redesign.cnbcfm.com\/dist\/a54b41835a8b60db28c2.svg\")
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