High diesel prices likely to raise costs of transporting goods to Peninsula

The diesel squeeze is on for businesses moving commodities on and off the North Olympic Peninsula.

With the per-gallon price of diesel reaching $2.61 earlier this month, trucking company owners say their only option is a fuel surcharge on products delivered at home.

That will ultimately mean higher prices passed along to customers at Peninsula grocery and retail establishments.

“That helps defray the cost, but the customers don’t like it,” Steve Kennedy, co-owner of Atlas Trucking Inc. in Port Angeles, said of fuel surcharges.

With a fleet of 25 trucks and 35 employees, Kennedy’s company mainly hauls paper and wood products.

Kennedy said Atlas buys its diesel in bulk, storing it in a 12,000-gallon tank.

“It’s kind of a gamble,” he said about determining when to fill the tank.

Kennedy said the price of diesel has actually fluctuated downward in the past two weeks to $2.30.

Drivers are being asked not to idle their trucks, and mechanics are doing their part to make the vehicles as fuel-efficient as possible, he said.

‘Squeeze the margin’

Eric Flodstrom, owner of Puget Sound Transfer, said despite the fuel surcharge option, high prices still “squeeze the margin.”

“We can pass it along somewhat with fuel surcharges. But fuel surcharges don’t cover the empty miles,” said Flodstrom, whose company has operated for 20 years in Port Angeles and has 11 trucks in its fleet.

Empty miles are those without a load, said Flodstrom, whose trucks move merchandise for retailers between the Peninsula, Seattle and Tacoma.

His company delivers to such companies as Swain’s General Store and Nippon Paper Industries USA Co. Ltd., owners of the paper mill on Port Angeles Harbor

“We can only beef up the efficiency. There’s not a whole lot you can do,” said Flodstrom, whose trucks have covered about 500,000 miles this year so far.

He said retail items to the Peninsula’s West End may be delayed until a full load is ready for delivery.

More in News

Applications open for tourism marketing grants

Visit Port Angeles is accepting applications for six $2,500… Continue reading

A crane lifts the framework for a new scoreboard being installed at Port Angeles Civic Field. The nearly $1 million, 40-foot-wide scoreboard, which dwarfs the field’s old board, is expected to be operational in time for opening day of the Port Angeles Lefties baseball season on May 30. About $800,000 came from state funding through the West Coast League, and $120,000 in Port Angeles Lodging Tax funds also were awarded. Due to technical issues, final placement of the structure was postponed on Wednesday. (Keith Thorpe/Peninsula Daily News)
New scoreboard

A crane lifts the framework for a new scoreboard being installed at… Continue reading

Joint Public Safety Facility pared down

Clallam County, Port Angeles aim for bids in August

Jason McNickle. (Clallam Transit System)
Clallam Transit appoints McNickle as its interim general manager

Operations manager will move into new role starting Aug. 1

New administrators named for Port Angeles school district

The Port Angeles School District has announced new personnel… Continue reading

One transported to hospital after crash

A man was transported to Olympic Medical Center in… Continue reading

Special filing period set in Jefferson County

The Jefferson County Auditor will conduct a special three-day… Continue reading

Port Angeles Fire Department Capt. Travis McFarland, left, and firefighter/EMT Tom Muir spread landscaping bark as part of a project to beautify the landscape around the fire hall. Fire department personnel spent time on Tuesday sprucing up the station grounds. (Keith Thorpe/Peninsula Daily News)
Fire hall landscaping

Port Angeles Fire Department Capt. Travis McFarland, left, and firefighter/EMT Tom Muir… Continue reading

Chimacum High School to Memorial Day program

Chimacum High School will host a Memorial Day program for… Continue reading

U.S. Highway 101, pictured from the Black Diamond bridge, is set to reopen late Thursday or early Friday, the state Department of Transportation said. The section has been closed since early March for fish passage work on Tumwater Creek with a detour set up on state Highway 117. (Dave Logan/for Peninsula Daily News)
Reopening soon

U.S. Highway 101, pictured from the Black Diamond bridge, is set to… Continue reading

Amazon submits permits with the city of Port Angeles

Project larger than one previously proposed

Port Townsend likely to see increases in recycling fees

Changes coming due to adjustments with Jefferson County Solid Waste