Diesel Prices Affect Consumer Goods

CHATTANOOGA, Tenn. (WDEF) – Rising diesel costs are putting pressure on the trucking industry and could soon affect consumers. 

Diesel recently passed five dollars per gallon, while regular gas is closer to four dollars. Semi-trucks rely on diesel, and higher fuel costs are already affecting freight and shipping.

Matt McClain, a gas expert, explained the importance of fuel costs to the economy: “It’s so important because that is the heart of our economy when it comes to shipping and transporting goods doesn’t matter if it’s a barge where there’s a tug pushing those barges a train a plane it’s obviously jet fuel there but it’s also on the way up and also semi tractor trailers. Everything is using fuel and the price point has most definitely increased.”

Higher diesel costs can eventually affect store shelves, including groceries, clothing, and other items that rely on freight transportation. 

McClain added: “The trickle down or ripple effect that it’s going to have on more than just you pulling up to the local gas station and filling up your vehicle with gasoline. The diesel aspect can have a profound impact on everything. Food prices clothing shipping you want something shipped next day to your home you’re gonna pay more for it.”

Shipping companies are already seeing higher costs. Spot shipping rates for manufacturers have increased alongside diesel prices. 

McClain explained: “Yeah it’s gonna impact shipping prices. I know a lot of manufacturers they get a spot shipping quote. There’s no doubt that those spot shipping quotes are now on a probably a jaw dropping increase to go from point A to point B because the shipping manufacturers simply have to pay more for diesel. That’s just the reality of it all.”

News 12 spoke to Zach Strickland, market expert with FreightWaves, who said some companies may delay passing higher diesel costs to consumers, but the impact could appear in a month or two. 

Strickland said: “A lot of these companies will probably decide to swallow this for a little bit longer, which means that we’re probably not looking at this having a meaningful impact on store shelves for another month or two now we get to the end of April and the conflict is still going on. They’re gonna have to start looking at things differently.”

Trucking companies are encouraging drivers to limit fuel use where possible, but rising diesel prices may continue to affect the cost of transporting goods. 

From groceries to online orders, diesel’s rising cost could touch nearly every part of the economy.