Diesel costs eat truckload carriers' pricing gains as JB Hunt, Werner and Heartland report
FreightWaves reported from JB Hunt, Werner and Heartland's latest earnings that truckload pricing power is back after two down years, but diesel and driver pay are taking the gains before they reach the bottom line.
For fuel jobbers and haulers, those earnings matter because when a carrier's fuel line climbs faster than its rate recovery, the fuel surcharge stops covering real cost, and the squeeze moves down the chain to anyone hauling product on contract.
Where the margin went
Rate recovery that doesn't reach profit means carriers are absorbing diesel between surcharge resets. Surcharges lag the pump. A base set weeks ago against a lower retail diesel number leaves the carrier eating the spread until the next adjustment. The earnings calls flagged that cost.
Road-to-rail conversion came up in the same breath. Intermodal gets more attractive the longer diesel stays elevated, so some freight that moved by truck could shift to rail if the fuel line keeps running hot into Q4.
Farm diesel pressure
Diesel prices are threatening farm viability, according to survey findings reported out of the Imperial Valley. For operators who supply ag accounts, that's a demand warning worth watching, because farms under cost pressure cut runs and stretch deliveries.
One Vermilion County farmer told the Commercial-News that red-dye diesel isn't helping. Off-road dyed product skips the federal road tax, so when even the untaxed grade pinches, the underlying wholesale number is the problem, not the tax treatment.
Trump blames Ukraine for diesel prices
President Trump blamed Ukraine alone for high diesel prices and adjusted foreign policy on that basis, per edmo.eu. Diesel pricing runs on crude benchmarks and refinery margins, so a single-cause story from the White House doesn't change what any US hauler pays at the rack. Worth noting only because policy built on a wrong read can still move markets later.
A B100 fleet
Edina rolled out Minnesota's first B100 biodiesel fleet, per Biodiesel Magazine. For fuel suppliers in B100-capable markets, a municipal fleet going to straight biodiesel is a sales lead and a blending-logistics question, though it's one city, not a trend yet.
What to watch
Watch the next surcharge resets against retail diesel. If the pump holds its current level, carrier fuel lines stay heavy into Q4 and contract haulers could see margin erode further. Watch whether intermodal volume ticks up in the Q4 numbers, and watch ag demand for signs the farm squeeze is cutting delivery frequency.