More price pressure = higher freight costs

Diesel price is being pushed up:
  • US refinery capacity totaled 18.1 million barrels per calendar day (b/cd) at the start of 2021 – down 0.8 million b/cd (4.5%) from 19.0 million b/cd at the start of 2020
  • While down from nearly $78/barrel – oil is still $73+
  • Meanwhile OPEC failed in its third attempt to resolve a deadlock over oil production
Freight costs are being pushed higher despite orders for class 8 trucks being up 11% month over month and more than 60% from a year ago.  And drivers seem to be the perennial excuse for cancelling customers and no-shows.