Rising Diesel Costs Put Pressure on Logging Operations
Read More About Rising Fuel Costs in the Logging Industry
Logging costs are surging dramatically due to the dramatically higher price of oil and its refined products like diesel fuel.
A logging contractor in Northern Michigan said diesel fuel represented 28% of his business’ expenses six months ago. Now it represents 40% of his expenses, collapsing the business opportunity for his work.
The price of oil has moved near or past $100 per barrel during shipping closures and risks from the wars in Iran and Ukraine. Tariffs are also having an impact.
Heavy trucks are particularly impacted due to the heavy consumption of moving loads of 33,000 pounds, according to analysis from the Forest Resources Association. That analysis cites mileage for trucks of that size at 5.29 miles per gallon.
Meanwhile, the price of diesel fuel, which ranged between $2 and $4 per gallon for a decade, is now approaching $6 per gallon.
American Loggers Council Executive Scott Dane told Fox Business News that filling up a logging truck is costing that business $1,350.