California truckers are grappling with record-high diesel prices, exacerbating financial strain in an industry already struggling with multiple challenges. The average price of a gallon of diesel in the state reached nearly $7.75 this week, a 50% increase from a month ago, according to the American Automobile Assn. The national average stands at $5.65.
Greg Dubuque, a third-generation trucker and general manager of Liberty Linehaul West, operates 40 trucks that transport goods between Los Angeles and Denver. He reports that the cost of filling a tank for his fleet has surged from $600 to $1,000 in recent months, a 35% increase above the national average.
'California sets itself apart from the rest of the country when it comes to pricing,' Dubuque said. 'Now it’s really out of control.'
The trucking industry has faced a prolonged freight recession, a crackdown on immigrant drivers, and the adverse impacts of tariffs, all contributing to a rise in bankruptcy filings. The recent price shock from geopolitical tensions, including the war with Iran, has further strained the industry, which hauls 70% of all freight in America.
Eric Sauer, CEO of the California Trucking Assn., stated that the high fuel costs have a 'tremendous impact on the industry.' Small truckers, in particular, are struggling to manage the financial burden.
The industry's challenges are multifaceted, with high fuel prices being the latest in a series of economic pressures. The combination of these factors has created a difficult operating environment for truckers across the state.