ATA: Trucking’s 2006 Fuel Tab to Rise to $94.3 Billion

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merican Trucking Associations Tuesday issued its 2006 projection for the trucking industry's fuel costs, putting it at $6.6 billion over last year’s tab.

ATA said the trucking industry will spend $94.3 billion on fuel this year based on current price forecasts, up from $87.7 billion in 2005.

The group said the trucking industry is faced with the highest fuel prices in history and that for many motor carriers fuel represents the second-highest operating expense behind labor, accounting for as much as 25% of costs.

ATA said fuel prices could rise again later this year because of the introduction of ultra-low-sulfur diesel fuel, scheduled to be introduced into the market mid-year. ULSD costs more to refine and distribute than current diesel fuel, the group said.

“An affordable supply of diesel fuel is imperative to keep our trucks moving," ATA President Bill Graves said in a statement. “Fleets must be guaranteed sustainable operating costs in order to continue delivering everything that is delivered by truck.”

ATA said trucks are projected to haul 13 billion tons of freight by 2016, up from 9.8 billion tons in 2004.

To alleviate future price fluctuations, ATA said it supports long-term strategies that would increase supply, including increasing refining capacity, using biodiesel blends of up to 5% and exploring Alaska's Arctic National Wildlife Refuge for oil reserves.