Rising diesel fuel prices during the past two weeks heighten an already costly shipping environment.

The Nov. 1 USDA Grain Transportation Report states that during the week of Oct. 29, diesel fuel prices increased six cents a gallon (to $3.16) — up two percent from the previous week, and 25 percent above the same week last year.  Since the beginning of October, prices have increased 11 cents a gallon.

Kevin Priest, AAF, of Cleveland Plant & Flower Company in Parma, Ohio, says fuel surcharges have gone up five to seven cents per kilo since early October. Thus far, the company has absorbed the increased costs, but Priest says they may have to start adjusting prices. "We have to remain competitive ... and be as efficient as possible," he says.

Fuel surcharges are "rising pretty dramatically," agrees Justin Marotta, AAF, of Possum Run Greenhouses, Inc., in Bellville, Ohio, who says "these costs are just going to have to be passed on."

Bob Luthultz, AAF, of Pittsburgh Cut Flower Co. in Pittsburgh, Pa., says that the diesel fuel prices have forced his company to "incorporate higher markup into our product," but the rising price of normal gas also is causing problems for his delivery service. "We are now having to look at [putting] a minimum [on orders delivered]," he says, adding that the costs are "making us look at how we are running our business."

According to the Lundberg Survey, published by the Associated Press last weekend, the national average price for gasoline rose about 16 cents over the past two weeks.

--Vanessa Machir
vmachir@safnow.org

Previous Article    Next Article