Monday, February 12, 2018

The Trucking Effects of Falling Fuel Costs

It does not take a whole lot of investigation to see that fuel prices are dipping in NC and  all over the country. That means paying less at the pump, which has an impact on both trucking companies as well as drivers. Here’s a look at some of the effects of falling fuel costs in the Charlotte trucking company industry.  

Better Surcharge on 30-Day Terms

It is important for truckers to keep an eye on their fuel surcharge as they continually fluctuate. Many truckers get paid for 30-day terms which means the surcharge may be more when they agree to terms. So if they agree on terms for a fixed surcharge and fuel prices dip, they stand to make a little extra cash. It is when fuel prices rise that drivers tend to lose out on the deal. The more fuel prices fall, the better it is for drivers to agree to 30-day terms. T G Stegall Trucking Co. in Charlotte offers a variety of options during the hiring process.

More Work to Go Around

The time period after the holidays is generally a slower time in the trucking industry. However, lower fuel costs are causing more shippers to return to trucking. Low fuel cost is a way for businesses to trim their expenses. This has forced a lot of businesses to shy away from rail and turn to freight in order to save money. 

Smaller Companies Survive

Operating expenses are down during times when fuel costs are low, which means that smaller trucking companies are able to stay in business. This can be both a good and bad thing. It allows for a smaller business to survive, but companies that are not run very well can also stay afloat. More capacity for those smaller companies could also lower rates, which could have a negative overall effect on truck driving jobs. 

Owner Operator Advantage

The owner operator is always eager to pay less at the pump. Controlling fuel costs is a major part of how the owner operator makes his living. Now that fuel costs are low, more owner operators are out on the road, which floods the trucking industry with more competition. Bigger trucking companies now have to contend with smaller operations as well as owner operators and that makes for a more competitive field. 

T.G. Stegall Trucking offers CDL driving jobs that include excellent pay and great benefits. If you are a looking for a truck driving job that can change your future, contact T.G. Stegall Trucking for the top Charlotte trucking jobs around.

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