The American Trucking Associations has revised upward the trucking industry's 2006 fuel costs, projecting motor carriers will spend $98.3 billion on fuel in 2006.
The revised estimate follows the release Tuesday by the Energy Information Administration of an adjustment in its 2006 forecast of the national annual average price of diesel from $2.59 per gallon to $2.70.
Today’s EIA forecast increased ATA's April 25 estimate of the trucking industry’s fuel bill by $4.0 billion dollars, and represents a $10.6 billion increase over the $87.7 billion spent for diesel fuel by trucking in 2005.
Earlier, ATA President and CEO Bill Graves said that for many motor carriers, fuel represented the second-highest operating expense, accounting for as much as 25 percent of total operating costs.
"An affordable supply of diesel fuel is imperative to keep our trucks moving," Graves said. "We are not recreational vehicles. We have to be out there delivering the goods that America and our economy are demanding.”
Trucking serves as a barometer of the U.S. economy because it represents nearly 70 percent of tonnage carried by all modes of domestic freight transportation, including manufactured and retail goods. Trucks are projected to haul 13 billion tons of freight by 2016, up from 9.8 billion tons in 2004. Motor carriers collected $671 billion dollars, or just under 88 percent of total revenues earned by all transport modes.
ATA said fuel prices could increase further in 2006 because of the introduction of ultra-low sulfur diesel, which is scheduled to hit the market mid-year. ULSD costs more to refine and distribute than today's diesel fuel. This could place additional upward pressure on the price of diesel fuel.
To alleviate future significant fuel price fluctuations, the trucking industry supports long-term strategies that would increase the diesel fuel supply. These include increased refining capacity and the use of biodiesel in blends up to 5 percent as part of the national diesel fuel standard.
The American Trucking Associations is the largest national trade association for the trucking industry. Through a federation of other trucking groups, industry-related conferences, and its fifty affiliated state trucking associations, ATA represents more than 37,000 members covering every type of motor carrier in the United States.
The revised estimate follows the release Tuesday by the Energy Information Administration of an adjustment in its 2006 forecast of the national annual average price of diesel from $2.59 per gallon to $2.70.
Today’s EIA forecast increased ATA's April 25 estimate of the trucking industry’s fuel bill by $4.0 billion dollars, and represents a $10.6 billion increase over the $87.7 billion spent for diesel fuel by trucking in 2005.
Earlier, ATA President and CEO Bill Graves said that for many motor carriers, fuel represented the second-highest operating expense, accounting for as much as 25 percent of total operating costs.
"An affordable supply of diesel fuel is imperative to keep our trucks moving," Graves said. "We are not recreational vehicles. We have to be out there delivering the goods that America and our economy are demanding.”
Trucking serves as a barometer of the U.S. economy because it represents nearly 70 percent of tonnage carried by all modes of domestic freight transportation, including manufactured and retail goods. Trucks are projected to haul 13 billion tons of freight by 2016, up from 9.8 billion tons in 2004. Motor carriers collected $671 billion dollars, or just under 88 percent of total revenues earned by all transport modes.
ATA said fuel prices could increase further in 2006 because of the introduction of ultra-low sulfur diesel, which is scheduled to hit the market mid-year. ULSD costs more to refine and distribute than today's diesel fuel. This could place additional upward pressure on the price of diesel fuel.
To alleviate future significant fuel price fluctuations, the trucking industry supports long-term strategies that would increase the diesel fuel supply. These include increased refining capacity and the use of biodiesel in blends up to 5 percent as part of the national diesel fuel standard.
The American Trucking Associations is the largest national trade association for the trucking industry. Through a federation of other trucking groups, industry-related conferences, and its fifty affiliated state trucking associations, ATA represents more than 37,000 members covering every type of motor carrier in the United States.
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