The relationship between Retail Diesel and Rate Per Mile is bad and getting worse.
This is especially bad for the smaller fleets and O/O’s. As we know, record numbers of them have entered the freight markets over the past couple of months.
The relationship of cost to revenue has not been this bad since…well it just hasn’t been this bad.
Green is Van Spot Rate per Mile. Blue is the retail Diesel Price.
How long until this causes an acceleration in the descent of rates?
Desperation is a destructive force.
NOTE: See the gap between Orange (Low Sulfur Diesel Rack) and the Blue (DOE)?
That is the profit on fuel surcharges.
Higher fuel is not necessarily a bad thing for enterprise carriers.
Fuel profits put pressure on the lower-priced competition.
