Missouri trucking companies are facing mounting pressure as diesel prices climb, with some long-established carriers shutting down as fuel costs continue to rise.
Diesel prices in Missouri are up nearly 60% from a year ago, creating new challenges across the state’s trucking industry. Missouri Trucking Association President and CEO Tom Crawford said the impact is being felt especially hard by smaller operators.
“It’s unfortunate I’m seeing family-owned mom and pop trucking companies that grew during the 70s and 80s and 90s and getting notices that they’re shutting down their doors or they’re closing their businesses,” Crawford said. “And it hurts when you see that. It’s been a challenging time.”
Fuel is one of the largest expenses for trucking companies, making sudden price increases difficult to absorb. Crawford said diesel typically ranks just behind driver-related costs in a carrier’s budget.
“Consistently, fuel is the number two expense item behind the investment in the driver, if you will,” Crawford said. “It’s a large expense item for almost every trucking company, no matter the size.”
The higher fuel costs are rippling through the trucking industry and could eventually affect consumers as freight carriers look for ways to manage expenses.
Crawford said trucking companies are now closely watching how diesel prices and holiday shipping demand intersect in the coming months.
“Christmas purchasing and the Christmas push is starting earlier and earlier,” Crawford said. “And so, I think that’s where you’re going to see it. I think that’s going to be determined, and we’ll see that kind of in the Christmas time market push.”
Crawford said fuel remains a major concern for Missouri carriers, and he is already hearing from some trucking companies that have decided to close their doors as costs continue to rise.
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