The price of diesel has collapsed in recent months, putting it at its lowest price in more than four years and with expectations for the price to remain low throughout 2015.
How can carriers capitalize?
One way, says ProMiles’ VP of Marketing Chris Lee, is to update fuel surcharges daily.
“The savvy carrier is moving to a daily update,” Lee says. “It’s given them a little bit of an edge as the week goes on and makes them able to react quicker than some other carriers. That allows them to be more competitive in their rates while at the same time knowing their taking care of their bottom line.”
Competitive rates could help carriers pick up business they might not have otherwise and potentially get their foot in a shippers’ door they may not have had a chance at had they not maintained daily flexibility with their surcharges and rates.
The price of diesel in the most recent week dropped 6.8 cents, and the Department of Energy projects diesel to remain low throughout 2015 — a projected average $3.07 a gallon.
Lee recommends carriers move quick to take advantage of the low prices. “Every week it continues to go down at this point is surprising to me,” Lee says. “But I wish I had a crystal ball.”
