Fuel prices, inflation, and global uncertainties are starting to put a drag on both trucking and the economy, according to the latest FTR Trucking Conditions Index.
A record surge in fuel costs in the wake of Russia’s invasion of Ukraine will hit trucking conditions in the near term, but the longer-term effects of geopolitical tensions are not yet clear. For now, FTR’s Trucking Conditions Index outlook remains positive, but the downside risks have increased greatly.
If not for a fuel surcharge, many trucking companies, namely smaller ones, would likely not be able to withstand the rising cost of diesel fuel, James Steed of Steed Standard Transport told the Toronto Sun.
Canadians are wondering if recent disruptions in the European supply chain can also occur here.
Increasing driver wages and benefits as well as rebounding fuel prices caused trucking operating costs to increase by 6 percent, according to the latest American Transportation Research Institute report.