Florida trucking CEO warns soaring diesel costs are squeezing carrier profits
Florida Trucking Association CEO Scott Perry said rising diesel, insurance and equipment costs are putting mounting financial pressure on motor carriers.
JACKSONVILLE, Fla. — Rising diesel fuel prices are putting increasing financial pressure on Florida trucking companies, with fuel costs surpassing driver compensation as the largest operating expense for some fleets.
Florida Trucking Association CEO Scott Perry said the combination of higher diesel prices, insurance premiums, equipment costs and driver wages is squeezing motor carriers already struggling with tighter margins.
“Traditionally, driver pay was the number one line item on the P&L,” Perry told FreightWaves during an interview at the WEX OTR Summit in Jacksonville, Florida. “Fuel has surpassed that in many instances, and it’s extremely challenging for them to absorb that if they don’t have good fuel charge mechanisms or recapture ability with their customers.”
Perry, a trucking industry veteran with more than 35 years of experience, said carriers without adequate fuel surcharge arrangements are particularly vulnerable to sudden price increases.
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