In the middle of May, inflation numbers dropped, giving economic analysts hope that we were turning the corner. Yet despite what should be good news, prices on fuel, equipment, and more are still on the rise. How is the trucking industry adjusting to meet high demands with strong economic headwinds?
Oil Futures and the Price of Gas for the Trucking Industry
Oil futures have been very unstable lately. The yield curve has been flattening and getting closer to zero and even negative numbers, and this has wall street analysts worried about a recession. Unfortunately, concern on Wall Street has a ripple effect in the business world. Instead of lowering prices at the pump to make up sales by volume, the cost of diesel fuel is increasing. This places the trucking industry in a very precarious predicament. If the cost of shipping increases, then prices for consumers go up even further. At the same time, if fleet owners do not increase their rates, then they will experience cash flow strains. The first option will potentially accelerate inflation numbers, raise prices on consumer goods, and hit businesses and private citizens in the wallet. The latter option will negatively impact the trucking industry, further impact supply chain issues, and potentially exacerbate the driver shortage. The trucking industry seems to be in a lose-lose situation, as far as the larger economic picture is concerned.
Maintaining Low Fuel Costs as Prices Soar
Back in April, wholesale prices jumped 11 points, forcing retailers in every sector to raise prices for consumers. This was especially felt by the trucking industry, which relies on fuel to function, but also can no longer budget accurately for fuel costs because of wildly varying prices at the pump. Some fleets have advised their drivers to search for stops with the lowest fuel prices when they are out on the road, but too often they burn more gas going out of the way to shave a few pennies off the price per gallon. Trucking companies and owner-operators alike need a viable solution for dealing with rising diesel prices without wasting time, wear and tear on vehicles, and money. Trucking companies can maintain low fuel costs with robust discount programs.
Finding the Right Fuel Discount Program for Your Trucking Company
Every fuel discount program is different, and some have fallen by the wayside because they cannot keep pace with rising prices. There are key points to look for when shopping for a fuel discount program:
- Availability: No one wants a fuel discount program that works at only select truck stops or convenience stores. Trucking companies and owner-operators demand wide coverage. As a solution, Single Point Capital offers a fuel discount program that is available at thousands of locations throughout the United States.
- Wholesale Savings: As mentioned above, wholesale prices increased at the start of the second quarter this year. For trucking companies that purchase fuel from wholesalers, the spike in pricing has been eating into their budgets. Single Point Capital has long-standing relationships in the energy industry, and can provide steep discounts on wholesale fuel purchases.
- Expense Tracking: Trucking companies need to be able to track how much their drivers spend on fuel so they can plan for the future. Single Point Capital’s fuel discount program gives fleet owners the ability to track employee expenses in case they need to reduce diesel consumption or increase their budgets.
- Lines of Credit: In addition to big savings at the pump, Single Point Capital’s discount program also offers fuel credit lines up to 20% of your monthly revenue to keep trucks rolling.
Trucking Companies Should Not Overpay for Fuel
There is no sign of economic fluctuations stabilizing anytime soon. While uncertainty looms, fuel prices at conveniences and truck stops will continue to rise. Single Point Capital offers a comprehensive fuel discount program for trucking companies and owner-operators alike. Our fuel discount program is exclusive to those who take advantage of our freight factoring services. If you want to lower fuel expenses with a discount program that covers wholesale purchases, is accepted at thousands of locations nationwide, and can extend lines of credit, contact the team at Single Point Capital today.