At the time of this writing, the national average retail on-highway diesel price stands at $5.071 per gallon (EIA data for the week ending March 16, 2026). That represents a roughly $1.59 increase since the first week of January.
As diesel prices have surged, our team at Werner has fielded more questions than ever about the strain on cash flow, profitability and practical steps to manage this volatility. It has become a top concern for small truckload carriers and our goal is straightforward: to stay in our lane as a leading logistics provider and offer actionable strategies to help you protect your bottom line.
The core problem is simple: Rising diesel costs are squeezing cash flow and eroding profitability. Let’s break down the mechanics of this impact and how to counter it.
The Cash Flow Crunch
Fuel must be paid for upfront — often before you even start the engine — while customer payments can take 30+ days. Higher prices amplify this negative cash cycle and strain your working capital.
Many carriers turn to quick-pay programs or factoring to bridge the gap. While these provide speed, they add costs. In volatile times, it is critical to review your options:
- Flexibility is Key: Some programs charge fees on every receivable. Look for flexible options that allow you to use them only when needed.
- The Miles+ Advantage: Programs like Werner Miles+℠ provide qualified carriers with discounted Quick Pay options (as low as 1% for 5-day payment). This allows you to reinvest in your next tank of fuel without the heavy haircut taken by traditional factoring.
- The Windfall Effect: When prices eventually drop, loads hauled at higher rates create a cash windfall. Don’t let unnecessary factoring fees eat into that much-needed relief.
Protecting Profitability
There are three main ways to counter rising fuel: use less, pay less or pass it on.
1. Use Less (Operational Efficiency)
Most carriers already prioritize boosting MPG and cutting idle time but current prices change the ROI math:
- Equipment Upgrades: At a $5.07+ national average, the fuel savings from newer equipment are more compelling than ever. Through the Miles+ program, carriers can even access preferred pricing on low-mileage, fleet-maintained trucks and trailers to modernize their fleet affordably.
- Freight Density: Are you working with partners who offer density? Larger networks provide more nearby load options, significantly slashing deadhead miles.
- APU Performance: If you haven’t revisited the efficiency of your Auxiliary Power Units lately, now is the time.
2. Pay Less (Procurement Leverage)
If you’re paying full retail, you’re leaving money on the table. For smaller fleets, negotiating individual discounts is tough, but you can leverage the scale of larger partners like Werner for pre-negotiated rates.
Through Werner Miles+℠, carriers gain access to exclusive fuel discounts at more than 1,700 locations nationwide. In 2024, carriers in the program averaged savings of $0.60 per gallon, with some top-tier members seeing even higher discounts. When retail prices hit $5.00+, those cents-per-gallon savings become the difference between a profitable week and a losing one.
3. Pass the Cost (Fuel Surcharges)
In truckload shipping, per-mile Fuel Surcharges (FSC) are the most effective way to equitably adjust rates. If your regular customers lack an FSC, you are fully exposed to price spikes.
Key elements of a per-mile FSC to monitor:
- The Peg: The base price where reimbursements begin (e.g., $2.00/gallon).
- The Bracket: How quickly the rate adjusts (e.g., a $0.01/mile change for every $0.07/gallon shift in fuel price).
Note: FSC isn’t meant to cover 100% of fuel or extras like idle and deadhead. It is designed to track changes in your primary fuel expense; the rest must be managed through the “use less” and “pay less” tactics mentioned above.
The Bottom Line
Addressing fuel volatility requires coordinated attention across your operations, finance and procurement. Whether it’s optimizing quick-pay options, exploring better fuel programs or reducing empty miles through denser networks, we are here to help small carriers navigate these market shifts.
Stop Overpaying at the Pump
Don’t let market volatility dictate your profitability. Join the Werner Miles+℠ rewards program today to start saving an average of $0.60 per gallon and access discounted Quick Pay and equipment pricing.
Join Miles+ and Start Saving Today | Or call our team at 866.700.1028
