4. Fuel, Taxes and Tolls
Operating costs continue to increase for trucking companies. Fuel costs, listed as the top industry concern in 2022 by the American Transportation Research Institute, remain high, with mixed reports on the pricing outlook for 2023. Companies have also experienced increases in general tolls for turnpikes, bridges and expressways, including new highway use fees. With the adoption of electric and alternative fuel vehicles, states may look to raise fuel taxes or adopt new fees for electric charging to maintain revenue. Despite the gradual easing of inflation rates, prices remain higher than average for most goods and services.
As product demands return to normal levels, shippers may face the need to push for rate reductions, but carriers cannot afford to continually drop rates with such high operating costs. Shippers and carriers should focus on establishing long-term relationships, protecting freight volume and rates through mutually beneficial partnerships. PGT believes in providing quality customer service, which is enhanced through the relationships we develop with our customers.