Diesel Price Rises; Parcel Expecting Increases

Diesel Rises, Parcel GRIs

Week of October 31, 2022

Small Parcel Update

In the recent week, UPS has announced a General Rate Increase (GRI) for 2023 of 6.9%. This increase is effective on 12/27/22. FedEx recently announced the same GRI increase of 6.9% for next year effective on 1/2/23.

Diesel Fuel Update

Relief at the pump happened for a little, but not for long. The price for diesel fuel is increasing again. The chart of the week showcases the trailing averages with the fuel prices marked by the blue line. Diesel fuel prices have been a top concern of motor carriers this year.

Less-Than-Truckload (LTL) Update

LTL carriers are continually working through capacity issues on a terminal, shipment, and day-to-day basis. Weekly updates/directions are given by carriers to help alleviate their terminal which may include: freight embargos, dimension/quantity restrictions, and transit delays. TLI is actively monitoring these situations and will update any affected customer with solutions.

Truckload Update:

A recent American Trucking Associations (ATA) showcased results of a survey conducted by a third-party research company for motor carrier concerns. The top concerns were Truck Parking, Diesel Prices, and driver detention at shipper/receiver as top concerns.

Spot rates have continued to decrease in October with the monthly average being around $.03 lower than September’s national average across all equipment. Contracted rates are still trending sideways as spot rates continue downward.

TLI is actively monitoring situations in the industry, such as acquisitions, embargos, and other industry disruptions. If a TLI client is directly affected by any of these events, your TLI representatives will reach out to discuss what this means for your account.

TLI highly suggests that on all shipments you provide our team with the “Must Arrive by Date” (MABD) as to when you need the product delivered. This will help us select the proper transit time / equipment type at the best current freight rate.

Please contact your Translogistics team at 610-280-3210 for any further questions. 

*article written by Mitchell Kinek, Sales/Marketing Executive, Translogistics. Any questions, please do not hesitate to reach out!