ATA Raises 2004, 2005 Diesel Cost Estimates

merican Trucking Associations Thursday revised upward the trucking industry’s cost for diesel fuel for 2004 and 2005.

espite the recent drop in retail fuel prices, ATA said the trucking industry will spend $87.7 billion on fuel this year — a $2.7 billion increase over the previous estimate of $85 billion it issued in September.

The trucking group also reported that motor carriers spent $65.9 billion on diesel fuel last year, which was $3.3 billion more than the $62.6 billion originally calculated.

ATA President Bill Graves said that diesel costs remain the number one concern of motor carriers. For many motor carriers, fuel is second-highest operating expense behind labor, accounting for up to 25% of operating costs.

“Motor carriers continue to face significant pressures from high fuel costs,” Graves said. “The revised fuel costs further demonstrate the urgency of our situation.”