XENIA — Rising diesel prices are forcing trucking companies to rethink their finances as operational costs climb.
[DOWNLOAD: Free WHIO-TV News app for alerts as news breaks]
Home Run Inc. anticipates an additional cost of approximately $77,000 per week due to the current price surge.
The increase is significantly impacting profit margins for the company, which operates a fleet of 180 trucks.
Home Run Inc. has specialized in transporting home-building supplies for three generations, but the rising fuel costs are creating financial challenges for the long-standing business.
TRENDING STORIES:
- Man charged in deadly shooting of lawn care worker facing new charges
- U.S. Marshals arrest 1 on drug trafficking, weapons violation charges in Dayton neighborhood
- Man accused of causing crash that killed teen learns punishment
Tom Milby, owner of Home Run Inc., said the financial burden per vehicle is substantial.
“We’re averaging, we’re thinking it’s going to be about $96 for just one truck,” Milby said. “For the 180 trucks we have, it’s going to impact us around $77,000 per week.”
Milby said the price hike came despite industry expectations that fuel costs would remain stable.
“Everybody was reassuring us that it’s not going to go up,” Milby said. “But obviously that’s not the truth this time.”
Beyond his own company, Milby said he’s concerned for the stability of the wider trucking industry if fuel costs do not trend downward.
He said the current profit lines are not meeting expectations.
“Our profit line will not be as much as we hope for,” Milby said. “Then I mean, if it continues, that can put some companies out of business.”
Milby added that the rising costs in transportation will eventually reach households because of the central role trucking plays in the supply chain.
“Trucking brings everything to your home,” Milby said. “We bring the products to you.”
To stay ahead of market shifts, Milby is monitoring global events that influence fuel costs.
In addition to watching the numbers at the pump, he is specifically keeping track of developments in Iran.
Milby said his team is currently restructuring company rates and the budget to manage the ongoing price surge.
[SIGN UP: WHIO-TV Daily Headlines Newsletter]