Lower diesel prices ease pressure on carriers
Retail diesel's national U.S. average price per gallon of $3.52 in November is down from $3.59 in October and much lower than the $4.25 average from November 2023. This marks the 21st consecutive month of y/y decreases in fuel.
As mentioned in the August 2024 Freight Market Update, in a soft market, carriers often need to deadhead longer mileage to find a load. While fuel is largely considered a pass-through accessorial, deadhead is often a sunken cost for carriers, especially in soft markets.
This continuing decrease in diesel pricing is another alleviating factor contributing to the persistence of smaller carriers, as the extra deadhead isn’t necessarily equating to further sunken costs. If diesel prices increase, it would add more strain to carriers and speed up carrier attrition from the market.
