How rising fuel costs affect the trucking transport industry and shipping costs

Higher fuel prices are packing a punch for every driver. With the national average of fuel prices changing to a recent 15 cent change, it’s also a big deal for transporting companies like Milwaukee-based national motorcycle shipper Daily Direct-Haul Bikes.

“HaulBikes gets their pricing from the Department of Energy,” explains Ken Durik, co-owner and founder of Daily Direct-HaulBikes. According to Official Energy Statistics from the U.S. Government (www.eia.doe.gov), the cost to produce and deliver gasoline to consumers includes the cost of crude oil to refiners, refinery processing costs, marketing and distribution costs, and finally the retail station costs and taxes. The prices paid by consumers at the pump reflect these costs, as well as the profits (and sometimes losses) of refiners, marketers, distributors, and retail station owners. The cost of gas can affect many businesses beyond those involved with the fuel industry. The cost of pineapples and papayas are affected when it involves shipping it from Hawaii to Wisconsin, for example. And with companies involved in transportation, such as HaulBikes, fuel costs affect major elements of business, such as fueling transport trucks, driver costs and maintenance.

HaulBikes’ specially equipped semis average 5-6 miles per gallon. HaulBikes’ trucks take 300 gallons to fill up, which costs about $1,000 and they fill up 2-3 times a week. “For example, the 15 cent price increase will cost $6,000/year for just 1 truck and with 17 trucks, that's $102,000 more per year.”
                                                 
“People choose Daily Direct-HaulBikes so that they can take a worry-free vacation – they pack their bags, hop a plane or drive cross-country, and meet their bike at a premiere rally destination like Daytona’s Bike Week. “We still provide this same, high-quality convenient service to our customers, no matter what the gas prices.” points out Durik, “but we just want our customers to know that the fuel prices are the only reason for the recent shipping rate increase.”

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