Truckers and carrier companies rely on diesel fuel to move their mighty machines. But what happens when the diesel supply starts to run low? In that case, you have a diesel shortage, which can impact your trucking business in more ways than one.
Let’s break down the truth about rumors of a diesel shortage and explore how you can plan for the worst with a few smart tips.
Is There Going To Be a Diesel Shortage?
If you’ve been paying attention to the news, you’ve probably heard rumors about an apparent diesel shortage in the near future. In truth, some shortage is likely, though it remains to be seen how severe the shortage will be.
According to the EIA, distillate fuel oil stock levels were at their lowest level since April 2008. Usually, distillate fuel oil stock levels are between 115,000 and 150,000 (one is approximately 1,000 barrels of fuel). At the end of October 2022, there were just 106,784 stocks. This is much lower than normal.
Therefore, you can expect a diesel shortage to affect your business, at least in some capacity. The fact that this has occurred with a driver shortage has led to some economic uncertainty among carrier companies and clients.
Why Is There a Diesel Shortage?
There are a few big reasons why there’s a diesel shortage now when there wasn’t over the last year, even during COVID-19.
For starters, diesel fuel stocks usually decrease every fall, from late August to November. Because it’s harvest season, the agricultural sector uses more diesel fuel.
Furthermore, consumer spending peaks as the holidays get closer, so more freight moves across the country. Lastly, the onset of cold weather means more people and companies purchase heating oil to warm homes.
Those factors combine to make the current diesel shortage less than surprising.
However, new factors have led to a more severe diesel shortage than normal. Most US refineries are doing maintenance, so they aren't producing as much oil as they normally do.
Furthermore, US refinery capacity has decreased over the last several years. This is due to many of the least profitable refineries being closed. With decreased refining capacity, natural gas prices have increased across the board, leading to outages, crude oil shortages for jet fuel, and various other issues.
To compound the problem, the US government has cut off Russian imports — before the invasion of Ukraine, the US imported approximately 700,000 barrels of both petroleum and petroleum products per day.
Without those imports, the US is now forced to acquire diesel oil and other petroleum products from other countries, such as Mexico, Canada, and European countries. Europe should replace the diesel inventories sourced from Russia for Americans on the East Coast faster than the West Coast, but not by much.
In short, the current diesel shortage (and forecast of continued shortage) is caused both due to predictable seasonal patterns and unpredictable economic events that have affected the world overall. The Biden Administration is working hard to reduce diesel prices and supply chain problems at this time of year.
How Can You Plan for a Diesel Shortage?
Even though a diesel shortage will likely continue to affect the shipping industry for the next few months, there are ways you can plan for it and minimize its impact on your operations.
Don’t Panic
Firstly, remember not to panic. The current diesel shortage will not last forever, and there is no reason to believe that diesel supplies will vanish entirely. Even if diesel becomes a little scarcer and prices increase for a few months, things will eventually stabilize, and prices will decrease once more.
So don’t cancel your contracts or change your shipping plans just yet. See if you can weather this economic storm in other ways, such as by cutting costs or reducing your shipping expenses.
Keep Tires Inflated
Next, do your best to keep your tires inflated to their optimal pressure level. With every 5 pounds per square inch or psi of tire pressure you lose, you’ll lose approximately two percent of your gas mileage potential. If your tires aren’t inflated properly, your diesel does less work than it potentially can.
That said, don't over-inflate your tires, either. That will also lead to a loss of gas mileage and potential damage to your tires.
Avoid Rush Hour
It's also a wise idea to try to avoid rush hour if at all possible. When driving in heavy traffic during rush hour, you must drive slowly and stop and start your truck multiple times. This on-and-off driving style burns more diesel fuel than driving on the freeway, where things are smooth sailing.
If you avoid rush-hour traffic, you’ll experience better fuel efficiency (and better driving efficiency), not to mention experience less personal stress. No one likes to drive in heavy traffic, but now you have another reason to try to avoid rush-hour madness. It’ll save you money and require you to purchase less diesel fuel!
Slow Down
Naturally, fuel consumption goes up as you increase your speed. Therefore, if you want to maximize fuel efficiency, you should try to slow down your driving while also maximizing freeways and smooth driving routes.
Don’t drive between 75 and 85 mph on the freight lanes unless you need to. The sweet spot is usually between 40 and 65 mph for maximum diesel fuel efficiency, particularly when telling heavy loads.
Slowing down isn’t always possible, of course, especially if you have shipping deadlines that you have to meet. Still, keeping this in mind can help you squeeze every potential mile out of a given gallon of diesel gas possible while maximizing your route efficiency.
Aside from these tips, don’t forget to do a detailed accounting of your fuel consumption and other expenses. If you expect diesel costs to rise soon, try to reduce costs in other areas to balance your budget. Remember, this is only temporary, and you’ll eventually see diesel costs return to normal in the next few months.
The Bottom Line
A diesel shortage, while concerning, is not the end of the world, nor does it mean that your business is in true jeopardy. In all likelihood, any upcoming diesel shortage will be short-lived and will be corrected in a matter of months. In the meantime, keep the above tips in mind to maximize your diesel consumption efficiency.
Working for RPM is another good way to help your supplies stretch and get high-paying contracts. With RPM, you’ll benefit from fantastic customer service, intuitive software, and other advantages that help you get the best clients and the best contracts each time. Contact us today.
Sources:
Column: U.S. diesel shortage increasingly likely until economy slows | Reuters
Weekly US Ending Stocks of Distillate Fuel Oil | US Energy Information Administration
6 myths about saving on gas | CBC News Why The U.S. Has A Diesel Shortage | Forbes
