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Trucking News · California ·

California Port Truckers Say $8 Diesel Is "Killing the Business"

A frustrated truck driver fuels his semi at a diesel pump near the Port of Oakland as another driver stands with arms crossed
Illustration for this story. Not a photo of a specific location.

Diesel in California has averaged more than $8 a gallon, and owner-operators hauling out of the Port of Oakland say it is eating the money they used to bring home.

Their stories were reported Oct. 21 by KQED. The drivers quoted are individual truckers, not a survey of the whole port, and no strike or work stoppage has been reported.

A $1,400 fill-up

Danny Bui, 49, of San Jose, is a father of four who drives a 2015 Freightliner Cascadia as a licensed motor carrier, the industry term for an independent contractor, according to KQED. He hauls with PCC Logistics at the Port of Oakland. KQED described his truck as stocked with a bed, a microwave, a refrigerator and a hearty supply of instant noodles.

Bui told the station he now pays around $1,400 to fill his 240-gallon tank, which he said is double what he used to pay.

"Before, you make money. Now, you try to cover the cost. That's how it works now," he said. "We just live day by day."

According to KQED, diesel in California has averaged over $8 a gallon, up $3 from a year ago. The station, citing AAA, said California diesel is currently about $2 higher than the national average.

$450 out of every $1,000

Martin Ramirez, 59, of Oakland, has been trucking for 34 years and also hauls for PCC as a licensed motor carrier, KQED reported.

He told the station that 20 years ago, he took home $750 of every $1,000 he earned after paying for fuel and insurance. Now, he said, he takes home about $450.

"We're not saving any money like before," Ramirez said. "We're not taking any vacations or taking our kids on a trip. We're just surviving."

Shorter runs and a 45% fuel surcharge

PCC hauls meat and produce from the Central Valley to the port, where goods are loaded onto ships bound for Asia, according to KQED. Steve Gardner, PCC's director of transportation, told the station that the company's independent truckers have become reluctant to make those long hauls because of diesel prices.

"They don't want go that far because it costs money. They're upset, and rightfully so," Gardner said.

Gardner said PCC currently charges customers a 45% fuel surcharge, and most of it goes to the independent truckers to help with the higher fuel bill. He told KQED he is surprised there has not been a work stoppage or protest.

Bui has switched to short jobs between the port and nearby warehouses to limit his fuel costs, according to KQED. He said it is not a long-term answer.

"The diesel is killing the business," Bui said. "I would give it until the end of this year. If not, then I'll have to find something else to do."

How long could this last?

Severin Borenstein, a petroleum industry expert at UC Berkeley, told KQED that damage to oil fields and refineries could take months to more than a year to repair.

"If I were a trucker, I would certainly not count on diesel prices getting back to pre-war levels any time in the next many months, possibly more than a year," he said.

Borenstein also told the station that over time, truckers and retailers cannot keep absorbing the costs, which leads to less supply and higher prices for goods such as produce.

Running the numbers on your own truck

Drivers who want to see what fuel is doing to their own trips can plug their miles, fuel economy and diesel price into the free truck fuel cost calculator. The owner-operator profit calculator shows what is left per load and per mile after fuel, insurance and other costs.

A question for readers

Ramirez says he keeps about $450 of every $1,000 he earns, down from $750 two decades ago.

Owner-operators, how much of every $1,000 are you keeping right now compared to a few years ago?

Save this story for later

A frustrated truck driver fuels his semi at a diesel pump near the Port of Oakland as another driver stands with arms crossed

Sources