Is The U.S. Panic Buying Diesel?
As gasoline prices continue to rise, consumers aren’t the only ones feeling the financial pressure. Consumer and business owners alike are dealing with the effects of high prices and delay of cargo transports. High diesel prices mean higher demand across the globe due to an increase in American exports to other countries. So, what exactly is going on with diesel and how is it affecting other companies?
What Is the Current Diesel Issue?
Since the world is experiencing high demands of diesel fuel, experts report a panic buying of fuel. As the world demands more diesel fuel, refinery margins are also feeling the pressure to widen their margins and meet higher demands. Higher demands then lead to a rise in prices, in some areas up to 21%.
The current Russian/Ukrainian war has led to a diesel shortage and tightened the market on fuel. Prior to the war, European imports were close to a million b/d, but have since plummeted, causing a severe shortage across the globe. Latin America and African countries are also dealing with a diesel shortage. The issue is a global one. Is the U.S. panic buying diesel?
Is the U.S. Panic Buying Diesel?
The high rates in the United States have increased due to a higher demand in the area. Experts believe the market will tighten to meet high demands and keep up with competition of jet fuel demands global-wide. This will affect gas prices as companies struggle to meet demands. As refineries boost their production of diesel over gasoline, a supply-demand imbalance will occur.
Post-COVID, oil inventories have remained low, and a low supply of oil remains. Rather than increase oil production, petroleum increased because it is cheaper than oil. However, this practice has led to an increase in gasoline and diesel shortage worldwide. Smaller inventories have led to diesel panic buying, which only compounds the issue.
How Are Shortages Affecting Other Companies?
Trucks, trains, and other modes of transportation rely heavily on diesel. Driving the economy, diesel fuel is essential for the delivery of goods and products around the globe. It is essential for agriculture and the industrial sector. The continued shortage will affect other companies who rely on transporting and receiving a variety of goods. The shortage can increase the rising cost, putting more pressure on the economy.
What does this mean for other companies? Companies should carefully monitor the issue and how it personally impacts their business. Further shortages and increasing prices will alter the shipping routes around the world. This will affect companies as they navigate delays. Partnering with another company that can help navigate shipping logistics may take the pressure off and when handling goods and services.
Trifecta Transport Can Help
Trifecta Transport is a team of specialized experts that helps other companies navigate shipping logistics in their business. Tracking, booking, and scheduling can feel stressful when you’re trying to focus on customer service within your company. We understand the difficulty of dealing with shipping issues, especially time-critical shipping concerns. That is why our team is here to offer our support.
We understand it’s difficult to find the right company that will help manage your products and services. Whether you need help shipping by the truckload, intermodal rail, or air freight shipping services, we can help. When you partner with our team, we can help you navigate shipping methods, booking, scheduling, and more.
Contact Us For Service
You don’t have to deal with shipping details on your own. Contact the team at Trifecta Transport for help today. Let us help you so you can focus on your business.