Record diesel prices strain California trucking firms and raise freight costs

AAA data show California's diesel price reached a record $8.39 per gallon, a sharp increase from $7.98 the previous week and $5.17 a year earlier, while national prices also set a record at $6.45. Trucking firms such as Piazza Trucking, a family-run business specializing in heavy equipment transport, now face fill-up costs of about $1,500, up from three to four dollars per gallon in recent years. Owner-operator Kenyatta Cole disclosed that his three trucks consumed more than $10,000 in diesel during the first half of June, adding another $6,000 later, and warned that the industry could grind to a halt without rate adjustments.

The higher fuel expense is expected to lift freight charges, potentially feeding inflation across the supply chain. Analysts from GasBuddy echo concerns that every cargo and delivery will feel the impact, while local carriers struggle to stay competitive against lower-cost rivals.