Diesel prices hit truckers hard - Hawaii News Now - KGMB and KHNL

Diesel prices hit truckers hard

 By Jim Mendoza - bio | email

KALIHI (HawaiiNewsNow) - As logistics manager, Ryan Penaroza keeps track of Pineridge Farms Inc's fuel bill and its impact on the company's bottom line. So when he sees diesel prices on service station signs, his eyes drop.

"Diesel is on the bottom of the list and it's usually the highest price on the board," he said.

Last summer the trucking firm was spending $75,000 to $90,000 a month to put diesel in its seventy trucks that haul construction materials. Compared to this year that was a deal.

"I'd say right now we're spending between $125,000 and $150,000 a month on diesel," Penaroza said.

Hawaii truckers pay the highest rate in the nation for diesel and it's getting higher.

Gareth Sakakida of the Hawaii Transportation Association said diesel fuel accounts for twelve to fifteen percent of a trucking company's cost, and increases will get passed on.

"Their customers are the hotels, the grocery stores, retail outlets, Sears, Macy's, everybody. They deliver everywhere," he said.

In Pineridge's case higher diesel costs could eventually increase the cost of construction.

"Because of that our price might go up for the contractor. Then the contractor will probably pass that on to whoever is paying the bill for them," Penaroza said.

For the consumer the diesel bill truckers pay will trickle down to what you eat, what you wear, everything you buy for your home. Before you take it out of the store a truck has to get it there.

"The trucking industry has not gone to that increase yet. But I think we're just a step away," Sakakida said.

To curb waste Pineridge uses GPS to plot short routes and juggle deliveries so trucks don't go long distances if they don't have to, minimizing idling time.

"It's a lot of pressure to just monitor everything to make sure we're staying in the green and not in the red," Penaroza said.

The juggling act is fueled by the price of fuel.

Copyright Hawaii News Now 2011. All rights reserved.

  • Hawaii News Now headlinesNewsMore>>

  • Similar slayings draw vastly different political reaction

    Similar slayings draw vastly different political reaction

    Wednesday, September 19 2018 1:07 AM EDT2018-09-19 05:07:30 GMT
    Wednesday, September 19 2018 7:22 PM EDT2018-09-19 23:22:06 GMT
    (Luke Lu/Iowa State University via AP). In this Sept. 7, 2017, photo provided by Iowa State University in Ames, Iowa, golfer Celia Barquin Arozamena poses for a photo. The former ISU golfer was found dead Monday, Sept. 17, 2018, at a golf course in Ame...(Luke Lu/Iowa State University via AP). In this Sept. 7, 2017, photo provided by Iowa State University in Ames, Iowa, golfer Celia Barquin Arozamena poses for a photo. The former ISU golfer was found dead Monday, Sept. 17, 2018, at a golf course in Ame...

    Former inmate Collin Richards was charged with stabbing Celia Barquin to death during a random attack while she was golfing by herself in broad daylight on Monday morning.

    More >>

    Former inmate Collin Richards was charged with stabbing Celia Barquin to death during a random attack while she was golfing by herself in broad daylight on Monday morning.

    More >>
  • Trump says 'hard to imagine' Kavanaugh guilty of allegation

    Trump says 'hard to imagine' Kavanaugh guilty of allegation

    Wednesday, September 19 2018 12:37 AM EDT2018-09-19 04:37:34 GMT
    Wednesday, September 19 2018 7:20 PM EDT2018-09-19 23:20:38 GMT
    (AP Photo/Alex Brandon). In this Sept. 6, 2018 photo, Supreme Court nominee Brett Kavanaugh reacts as he testifies after questioning before the Senate Judiciary Committee on Capitol Hill in Washington. Official Washington is scrambling Monday to assess...(AP Photo/Alex Brandon). In this Sept. 6, 2018 photo, Supreme Court nominee Brett Kavanaugh reacts as he testifies after questioning before the Senate Judiciary Committee on Capitol Hill in Washington. Official Washington is scrambling Monday to assess...

    Trump has already rejected the idea of bringing in the FBI to reopen its background check of Kavanaugh. Should he order such a review, it would likely delay a confirmation vote until after the election.

    More >>

    Trump has already rejected the idea of bringing in the FBI to reopen its background check of Kavanaugh. Should he order such a review, it would likely delay a confirmation vote until after the election.

    More >>
  • Traffic deaths continue to soar with 4 more fatalities in recent days

    Traffic deaths continue to soar with 4 more fatalities in recent days

    Wednesday, September 19 2018 6:31 PM EDT2018-09-19 22:31:00 GMT
    Police responded to a fatal pedestrian crash in Wahiawa on Saturday night (Image: Jennifer Wong, Hawaii News Now)Police responded to a fatal pedestrian crash in Wahiawa on Saturday night (Image: Jennifer Wong, Hawaii News Now)

    Four people have died on Hawaii roadways in just the last three days, and the most recent are two pedestrians fatalities on Oahu Tuesday night. 

    More >>

    Four people have died on Hawaii roadways in just the last three days, and the most recent are two pedestrians fatalities on Oahu Tuesday night. 

    More >>
Powered by Frankly