Dear Valued Customer,

Recently, the U.S. national average price of diesel fuel surpassed the $6.00 per gallon mark for the first time in history and has continued to rise. As the conflict with Iran continues and the Houthis persist in attacking Saudi Arabia's oil infrastructure, fuel prices are expected to remain under upward pressure.

The sharp increase in diesel prices is forcing ocean carriers, railroads, and trucking companies to reassess fuel-related surcharges and service charges. As a result, transportation costs throughout the supply chain are expected to increase significantly.

The rising cost of diesel is also having a major impact on the trucking industry. Many carriers are already struggling with driver shortages as fleets remain stretched by demand, while others face mounting financial pressure from higher operating costs. According to media reports, escalating fuel prices are also contributing to an increase in trucking company closures.

As available transportation capacity tightens, shippers should expect continued disruptions throughout the supply chain. Reduced capacity may result in longer transit times, shipment delays, and increased challenges in securing transportation and equipment for cargo.

This remains a highly volatile situation, and we expect market conditions to remain uncertain for the foreseeable future. We will continue to monitor developments and provide updates as new information becomes available.

In the meantime, please contact your customer service representative if you have any questions about how rising diesel prices may affect your shipments. 

Thank you! 

Sincerely,

OEC Group