{"id":122026,"date":"2026-03-13T17:30:42","date_gmt":"2026-03-13T20:30:42","guid":{"rendered":"https:\/\/shipping.einnews.com\/article\/899236326"},"modified":"2026-03-13T17:30:42","modified_gmt":"2026-03-13T20:30:42","slug":"independent-truckers-warn-diesel-shock-could-trigger-industry-collapse-amid-prolonged-freight-slump","status":"publish","type":"post","link":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/2026\/03\/13\/independent-truckers-warn-diesel-shock-could-trigger-industry-collapse-amid-prolonged-freight-slump\/","title":{"rendered":"Independent Truckers Warn Diesel Shock Could Trigger Industry Collapse Amid Prolonged Freight Slump"},"content":{"rendered":"
<\/div>\n

A rapid spike in diesel prices tied to global tensions is intensifying financial pressure on owner-operators already struggling through years of weak freight demand.<\/p>\n

By yourNEWS Media Newsroom<\/strong><\/p>\n

Independent truck drivers across the United States say a sudden surge in diesel prices is threatening the survival of thousands of small trucking businesses, compounding a freight downturn that has persisted for years and pushed many carriers toward insolvency.<\/p>\n

According to reporting by the Daily Caller News Foundation<\/a>, diesel prices rose sharply following the launch of Operation Epic Fury<\/a> on Feb. 28, when President Donald Trump ordered a military operation targeting Iranian leadership. The action triggered turmoil in energy markets and disruptions in shipping routes connected to the Strait of Hormuz.<\/p>\n

In the week after the operation, diesel prices jumped more than 85 cents per gallon to roughly $4.59, according to fuel market data cited by GasBuddy<\/a>. The increase struck an industry that had already been attempting to recover from a prolonged freight recession<\/a>.<\/p>\n

Jamie Hagen, president of Hell Bent Xpress and an independent truck driver, said the rapid escalation in fuel costs could eliminate many owner-operator businesses if prices remain elevated.<\/p>\n

\u201cFor us to absorb this cost for much more than a few months means extinction,\u201d Hagen told the Daily Caller News Foundation<\/a>. \u201cFuel was the death blow to an already beaten up industry.\u201d<\/p>\n

The trucking industry\u2019s difficulties extend beyond the latest fuel surge. During the COVID-19 lockdowns, a dramatic increase in online purchasing caused freight demand to surge as consumers ordered goods from home. Logistics industry analysis shows freight activity expanding rapidly as e-commerce grew significantly<\/a>.<\/p>\n

Once restrictions ended, however, consumer behavior shifted again. Spending moved away from physical goods toward services such as travel, entertainment, and restaurants. Federal economic data tracking consumer expenditures shows households increasingly redirecting spending toward services<\/a>, reducing demand for trucked merchandise.<\/p>\n

That shift left the industry with far more trucks on the road than freight available to move. Analysts tracking logistics markets report that the imbalance triggered waves of bankruptcies among carriers and freight brokers<\/a> as companies struggled to remain solvent.<\/p>\n

Major shipping corporations such as UPS and FedEx have the ability to offset increased expenses by adjusting rates or adding surcharges. Independent truckers often operate under short-term or spot market arrangements that do not allow quick adjustments to freight prices.<\/p>\n

\u201cOur members often work load to load and can\u2019t simply raise their rates when fuel spikes the way their larger competitors can,\u201d the Owner-Operator Independent Drivers Association told the Daily Caller News Foundation<\/a>. \u201cWith freight rates already low, a sharp increase in diesel can quickly eat up what little margin a small trucking business has left.\u201d<\/p>\n

Another challenge for the industry has been a surplus of drivers competing for fewer loads. Market research shows truckers have increasingly been chasing limited shipments<\/a> as freight demand softened.<\/p>\n

Demographic changes have also contributed to a larger labor pool. Industry data indicates the number of foreign-born drivers has expanded significantly<\/a> over the past two decades. Federal labor statistics show foreign-born workers now make up nearly one-fifth of truck drivers in the United States, according to Bureau of Labor Statistics data<\/a> cited by industry analysis<\/a> and policy groups<\/a>.<\/p>\n

Several fatal crashes involving non-citizen truck drivers<\/a> have also drawn attention to workforce changes within the industry.<\/p>\n

Hagen said the influx of new drivers has intensified competition for freight.<\/p>\n

\u201cThe market got flooded with unqualified people. It\u2019s an absolute mess out here with all different nationalities and almost none speaking English,\u201d Hagen told the Daily Caller News Foundation<\/a>. \u201cAnd they\u2019re willing to risk their lives for little reward. If I could pay my people very little, basically food money, then maybe our situation wouldn\u2019t be so dire. As a driver myself I am not willing to do anyone that dirty though.\u201d<\/p>\n

Before the latest fuel spike, some industry observers believed immigration enforcement could eventually reduce the number of drivers competing for freight. Craig Fuller, chief executive of the supply chain intelligence company FreightWaves, argued that policy changes could help rebalance trucking capacity.<\/p>\n

\u201cNew immigration restrictions could curb driver availability, trigger a massive capacity crunch, and pull the trucking industry out of The Great Freight Recession,\u201d Fuller wrote<\/a>. Data cited in the report showed spot rates falling from $3.53 per mile in early 2022 to $2.28 per mile by July 2025.<\/p>\n

While policy shifts could potentially reduce oversupply of drivers, the industry now faces an immediate cost shock tied to fuel markets. Diesel prices had already remained elevated for several years, according to historical energy market data<\/a>.<\/p>\n

The most recent increase represents one of the steepest weekly jumps ever recorded. Market observers reported that diesel experienced the largest one-week increase in more than three decades, according to analysis of the record price surge<\/a>.<\/p>\n

\u201cThis is sort of the nail in the coffin,\u201d owner-operator James Hagen told the Daily Caller News Foundation<\/a>, referring to the sudden rise in fuel costs. \u201cThis raise in cost could slow the momentum we had going into 2026\u2026after 3 years of downturns, Hell Bent Xpress doesn\u2019t have a year 4 left in it. It is now or never. Henceforth why I don\u2019t sleep much at night these days.\u201d<\/p>\n

Large carriers have attempted to offset higher fuel costs through pricing adjustments. Shipping companies including UPS<\/a> and FedEx<\/a> announced additional fuel surcharges alongside a 5.9 percent General Rate Increase<\/a>.<\/p>\n

Independent truckers say they rarely have the ability to immediately pass along higher fuel costs.<\/p>\n

\u201cI\u2019m actively trying to renegotiate contracts with some verbiage to help with the situation. Typically, fuel doesn\u2019t rise this fast. At a slower pace we could have eventually just raised the rate of our contracts, but this is bonkers,\u201d Hagen told the Daily Caller News Foundation<\/a>. \u201cWe don\u2019t have contracts in place with a good fuel surcharge.\u201d<\/p>\n

Analysts say volatility in oil markets could persist as long as tanker traffic through the Strait of Hormuz remains disrupted, limiting the flow of crude to global markets.<\/p>\n

Despite the surge in transportation costs, experts say consumers may see only limited increases in retail prices because freight expenses make up a relatively small share of the final cost of most goods.<\/p>\n

\u201cBecause of economies of scale, consumers are protected somewhat from a rise in transportation costs,\u201d trucking industry analyst Justin Martin told the Daily Caller News Foundation<\/a>. \u201cEven if shipping rates doubled, we\u2019d only be looking at a 1-3% increase in the retail price of the item being moved.\u201d<\/p>\n

However, economists warn that higher fuel prices can still weaken freight demand if consumers spend more money filling their own vehicles.<\/p>\n

\u201cWhen consumers pay more at the pump, they have less money to spend on other goods that motor carriers haul for their customers. So, it can hurt freight volumes,\u201d American Trucking Association Chief Economist Bob Costello told the Daily Caller News Foundation<\/a>.<\/p>\n

Gasoline prices for drivers have also climbed, with the national average reaching $3.59 per gallon \u2014 an increase of more than 60 cents \u2014 according to AAA<\/a>.<\/p>\n

For truckers who have endured several consecutive years of falling freight rates and rising operating expenses, the recent diesel surge represents another obstacle that could determine whether many independent companies remain in business.<\/p>\n

\u201cI\u2019ve been in this industry my entire life and I\u2019ve never experienced anything like this,\u201d Hagen told the Daily Caller News Foundation<\/a>. \u201cI\u2019ve seen small slow downs and reduced demand but never a three year stretch before. I\u2019m known for being a very efficient operator and this has out paced anything I was prepared for.\u201d<\/p>\n

<\/a><\/strong> <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

… energy markets and disruptions in shipping<\/span> routes connected to the Strait of … and freight<\/span> brokers as companies struggled to remain solvent. Major shipping<\/span> corporations … fuel costs through pricing adjustments. Shipping<\/span> companies including UPS and FedEx …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-122026","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts\/122026","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/comments?post=122026"}],"version-history":[{"count":0,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts\/122026\/revisions"}],"wp:attachment":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/media?parent=122026"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/categories?post=122026"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/tags?post=122026"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}