Why Have Lower Diesel Prices Not Lowered Your Freight Costs?

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As of this week diesel prices have dropped for 3 consecutive weeks with the average price per gallon being $2.49 according to the United States Department of Energy’s Energy Information Administration (EIA).

As of this week diesel prices have dropped for 3 consecutive weeks with the average price per gallon being $2.49

This is the lowest weekly average the market has experienced since the week of September 28th when diesel was $2.47 per gallon, and represents an $1.13 decline when compared to the cost of diesel for this same week in 2014.

Your initial train of thought (freight pun intended) might be that with lower fuel costs that your LTL, truckload, flatbed and intermodal freight rates would be lower. Sadly this is often not the case, unless you’re are using the leverage of a privately owned 3PL like BlueGrace Logistics to negotiate lower rates on your behalf.

Publicly owned 3PLs see a decline in fuel costs as a negative to their revenue as the same load that may have been $2 a mile may now only be $1.75 a mile based off the cost of fuel. Instead of passing these savings on to their clients, they may maintain the same rates as if nothing has changed in the market, or even worse raise their rates to make up for the lost revenue across their company.

As a privately held technology company in the freight business, BlueGrace doesn’t have investors to satisfy. Our Executive Leadership Team, Account Executives & Operations Support Specialists are all focused on growing our company by offering the most competitive rates in the industry and backing it up with reliable service.

Our combined experience of hundreds of years in the logistics industry allows BlueGrace customers to take advantage of factors in the industry that go unnoticed by our competitors.

With our freight industry knowledge and commitment to providing your company with the most competitive rates possible, you can rest easy that your business has an edge over your competitors. Those same competitors are still going direct to carrier or working with other 3PLs who may be too large and reliant on public funds to make the best decisions for your company’s bottom line.

Contact BlueGrace Logistics today at 800-MY-SHIPPING (800-697-4477) and lets see what we can accomplish together.

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