People everywhere are benefiting from falling gas prices, and truck drivers are no exception.
With the price of diesel falling significantly in recent weeks, commercial truckers everywhere are reaping loads of benefits. Just how much do lower gas prices affect profits and the cost of rig insurance in Florida? The answers are quite startling.
According to the American Trucking Associations, each one cent decline in the price of diesel fuel results in an annual savings of as much as $375 million. According to the U.S. Energy Information Administration, the average cost of diesel fuel is currently $3.281/gallon, which is a decrease of 77.3 cents per gallon one year ago. As such, the trucking industry is realizing billions of dollars in savings.
Truckers are hoping the fuel savings can be used to provide them with more money and better benefits than what they are currently receiving, but they’re not the only ones who will benefit. American consumers should begin noticing lower prices on domestic goods, since trucking companies will be able to decrease shipping prices due to lower operating costs. This is a win-win situation for everyone, as lower prices on goods will help spur the economy, leading to even more jobs in the trucking industry.
The one downside to lower gas prices could come in the way of increased trucking insurance rates. Insurance rates are based on the odds of an accident occurring. With more trucks (and vehicles in general) on the road, the odds of an accident increases, which in turn results in higher insurance premiums. Even so, any increase in insurance is not likely to happen for some time, and should not be significant enough to impact profits. As a result, trucking companies will still notice a decrease in operating expenses due to lower fuel costs, even after paying higher premiums.
Falling gas prices have many people breathing easier these days, especially those in the transportation industry. To find out more about trends that affect truckers, contact us.