Record-high diesel prices are adding pressure to Minnesota’s trucking industry, but fuel is only one of several rising costs facing carriers.
Minnesota Trucking Association President and CEO John Hausladen says repair costs have increased nearly 9%, driver benefits almost 7%, and tires more than 6%.
“When repair costs are going up almost 9%, driver benefits are going up almost 7%, tires going up over 6%, these are just these inflationary year-after-year increases that make it incredibly hard for a trucking company to keep up.”
Fuel surcharges can help carriers adjust to changing diesel prices, but Hausladen says other operating costs continue to rise.
The higher costs and changing freight market have also led some companies to reduce their operations or leave the industry.
“We did see some companies just flat out exit. We saw some companies decide to just run fewer trucks. And then we did see some mergers and acquisitions, but we also saw drivers exit.”
Hausladen says freight demand and available trucking capacity are moving closer to equilibrium, which could help carriers better cover their costs.
The impact is particularly significant in Greater Minnesota, where many communities rely heavily on trucks for deliveries and shipments.
“Almost 67% of communities rely on trucks for everything that comes in and out because they don’t have rail, they don’t have air, they don’t have water. So, for many of the rural communities, truck is the lifeline.”
Hausladen says trucking also plays a major role in agriculture, moving seed and fertilizer in the spring and crops to processors after harvest.
Despite the challenges, Hausladen says the industry will continue adapting.
“These are challenging times, but trucking is gonna be here. Truckers are the masters of the workaround. We know how to manage our costs and make good decisions.”
