Truckers hit by high diesel prices and new restrictions on immigrant drivers

War in the Middle East has truckers feeling some sticker shock at the pump. Retail diesel prices are averaging above $5 a gallon, according to AAA. That’s nearly $1.50 more than they were a month ago. At the same time, new restrictions on certain foreign-born truckers are pushing thousands of drivers out of that workforce.

Diesel is a major input cost for companies like JKC Trucking, where Mike Kucharski is co-owner.

“I keep getting calls from drivers, saying that, ‘Look, they're seeing spikes from 90 cents to over $1 in some areas,’” he said.

While Kucharski said a lot of fuel costs get passed on to shippers through surcharges, “the problem — the problem in the truck industry — is we're already struggling, because we have very low freight rates.”

Independent owner-operators and smaller companies are more likely to eat that spike in fuel costs.

“There will certainly be a lot of small trucking companies that aren't going to be able to survive this surge in diesel prices,” said Avery Vise, vice president of trucking with FTR Transportation Intelligence.

That price pressure is happening as the Trump administration and states are moving to take certain foreign-born drivers off the road.

“For two decades, I have seen more and more unqualified drivers are getting behind the wheel,” said John Esparza, president and CEO of the Texas Trucking Association.

A lot of foreign-born drivers lack proper training, he said. “It is not about where you're from, it's how qualified you are once we put you behind the wheel.”

There’s room for more qualified foreign-born drivers in the industry, per Amanda Schuier, strategic maintenance director with the trucking company Jetco.

“I go out to high schools and middle schools and talk about careers and trucking, and in general, I think that there are not a ton of people who necessarily have that desire or that interest to get into trucking,” she said.

Analyst Avery Vise said he’s noticed the conversation around immigrant drivers shift since the new administration took office: “About a year ago, it was always a driver shortage, which then begs the question, ‘Why are they supporting an even deeper shortage?’ And that's when it became a shortage of qualified drivers.”

He does expect immigration changes to tighten trucking capacity further while higher diesel prices take out certain small-scale operators.