Diesel price spike leads to increased industry costs for trucking, fishing in Maine

HARPSWELL (WGME) – The pain at the pump is not just hurting drivers.

It’s also leading to increased operating costs across different industries.

As of Wednesday, the average price for a gallon of diesel in the U.S. is $5.49. It’s up by nearly $2 since last month.

For diesel-dependent industries like trucking, the spike is leaving a pinch.

“It’s troubling for every Maine citizen,” Brian Parke from the Maine Motor Transport Association said. “Trucking companies are just trying to figure out the best way to manage all of this so they can stay in business, operate at a profit and still be operating once the fuel prices go down.”

Parke says about 85 percent of Maine’s freight is delivered by truck.

“Whether people like it or not, there’s not much in your home that doesn’t come by truck. So yeah, the impacts can hit everyone,” Parke said.

Sometimes, companies who partner with truckers include surcharge provisions in their contracts. That means companies will pay for the fuel cost spikes, not the truck drivers. But Parke says those costs are often offset in increased store prices.

“No matter what level fuel prices are, it’s already baked into what the consumer pays,” Parke said. “So if fuel is $2 a gallon, consumer prices are going to reflect a certain amount. If fuel goes from $2 a gallon to $4 a gallon, then consumers will inevitably pay that additional amount.”

The ripple effects are also shrinking profit margins for commercial fishermen like Matt Gilley.

The pain at the pump is not just hurting drivers. (WGME)

“I usually try to haul once a week. I haven’t hauled in three weeks because of the price of fuel,” Gilley said. “I’m not keen on spending money to go to work.”

Gilley says the water is quiet this time of year. That won’t be true for much longer. He says the longer fuel prices remain this high, the more concerned he will become about potentially not turning a profit this summer.

“We’re an optimistic group in a pessimistic industry,” Gilley said. “Come June, if we’re still seeing $5 fuel prices, that’s when I’d start to get nervous. That’s when everything starts to pick up, that’s when guys start setting traps.”

The all-time record high for diesel prices in the U.S. was set four years ago, when AAA says it cost $5.82. That’s only $0.33 higher than what it is today.