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Released: March 12, 2008
Diesel Boosts Fuel-Price Forecast; High Crude Considered the Culprit
The U.S. Department of Energy radically heightened its projection for diesel prices, claiming it will average $3.45 a gallon this year and $3.70 in March and April. This is 57 cents higher than last year’s average. Gasoline prices will peak near $3.50 a gallon this spring, while pump prices for that fuel will average $3.21 for the full year, about 40 cents over last year. The projections are being driven by soaring crude oil costs, DOE said in its monthly short-term energy outlook. The annual average crude price, which was $72 per barrel in 2007, is projected to average $94 this year, but ease to about $86 per barrel in 2009. Crude oil averaged $95 a barrel in February and will average $102 in March, according to the DOE. Oil closed at a record $108.75 on Tuesday, but DOE said it expects the price to fall later this month. Last month, DOE lowered its diesel price outlook, saying it would peak in April and May at $3.30 a gallon before falling to near to $3 later this year.
> View the latest regional fuel fill diesel prices
DOT Freight Index Rises
The Department of Transportation’s freight transportation services index for January rose 2.7% from a year earlier, according to a report recently released. The freight TSI rose 2.4% from December, the biggest monthly increase in two years, according to the DOT. With the 2.4% month-to-month increase, the index had its largest climb to start the year since the January 1993, when it rose 4.2%. The January reading of 111.5 was 0.3% below the January 2006 and 1.3% lower than the January 2005 reading. The TSI is a seasonally adjusted monthly index measuring the output of services provided by the for-hire transportation industries, including railroad, air, truck, inland waterways, pipeline and local transit.
NASSTRAC’s Cutler Identifies Key Concerns for Shippers
During a recent NASSTRAC Web cast, NASSTRAC ’s Legal Counsel John Cutler highlighted the top issues that shippers should stay tuned on:
- Truck Driver Hours of Service. FMCSA, trucking industry, drivers, and shipper groups such as NASSTRAC support current rules and comments can be filed until March 17. Unfortunately, safety advocates are unlikely to give up, especially if Democrats win 2008 elections
- Infrastructure Funding Debate. Visit www.NASSTRAC.org to view NASSTRAC’s most recent filings.
- Security and Cross-Border Trucking. The National Surface Transportation Policy and Revenue Study Commission Report was released Jan. 15. There has been clear opposition by the DOT to more public funding and a greater federal role. There also has been a call for significant fuel tax increases. To further the dialogue, the National Surface Transportation Infrastructure Financing Commission issued an Interim Report Feb. 1. Essentially, at best freight transportation will cost more. At worst, it will cost more and service quality will fall due to lack of support for adequate highway infrastructure investment.
> View Webcast in its entirety. |
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