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Fuel costs drive earnings angst

Published Thursday, July 17, 2008

As second-quarter earning reports begin to trickle in, the high cost of diesel fuel is clearly becoming an operational and fiscal bane-- although many carriers are staying profitable. “We continue to be challenged by steep rises in fuel prices and, as typical in the truckload industry, unrealistic fuel economy assumptions in most customer-specific fuel surcharge programs,” said Kirk Thompson, president & CEO of J.B. Hunt Transportation Services, in his company’s second-quarter earning statement. “Fuel increased dramatically during the [second] quarter, climbing 70 cents per gallon, or 18%, from its low in early April,” he said. “We incur non-billable ...

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