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    Shipping and Logistics

    Low Diesel Prices Good—Regulations Not So Much

    Written by Sandy Williams


    Low oil prices are giving truck carriers a break through diesel rates that are at their lowest level since February 2011. The average U.S. diesel price was $3.535/gallon as of December 8, 2014, a drop of $.34 from a year ago. Fuel savings add up during winter months when storms can cause delays and idling that drive up operating costs.

    The drop in fuel costs does not equate to lower freight costs, however. During the week of Nov. 23-29, average rates increased 2¢ for vans and 3¢ for reefers while flatbed rates remained stable, week over week, according to DAT Trendlines. Spot rates for flatbeds averaged $2.31 per mile. Winter is a typically a slow season for flatbed freight and load volume declined 34 percent in November compared to October.

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