High fuel costs prompt moving companies to raise prices, adjust operations
Some moving companies can no longer absorb high fuel prices
High gas prices prompt moving companies to raise prices
As gas and diesel prices continue to rise, moving companies are passsing costs onto customers.
LAS VEGAS — Planning a move soon? Expect to pay a lot more.
With gasoline and diesel prices at all-time highs, some moving companies are passing the cost onto their customers.
It’s going to cost a pretty penny to move with $5-per-gallon fuel prices.
Some moving companies can’t absorb the high costs any longer, and they’re either raising rates or turning down jobs altogether.
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At $5 a gallon, a semitrailer moving truck can cost up to $1,500 for a single fill-up.
"We go through about 1,000 to 1,200 gallons of fuel a day between our whole operation," said Tom Dadon, owner of Triple 7 Movers in Las Vegas. "So every 15-, 20-cent increase in fuel prices causes a massive increase for our bottom line."
The high fuel prices are forcing companies like Triple 7 Movers to adjust their operations.
"We’ve had numerous rounds of price increases in the last two years. I would say an average out-of-state move has probably doubled in the last two years since COVID," Dadon said.
Triple 7 Movers serves a lot of California customers and may reconsider some out-of-state jobs.
Triple 7 Movers in Las Vegas has adjusted its operations following the spike in gas and diesel prices. (Ashley Soriano/Fox Business)
"Two or three months ago, if a job was, you know, 300 miles out of route off of the main interstate, we'd be able to service it," Dadon said. "Whereas now maybe we pass on a job or add a surcharge for an out-of-road surcharge, whereas before we could just absorb the costs and just make sure to service the customer."
Maury Kimball is a real estate broker from Salt Lake City who is moving over 400 miles to Las Vegas.
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One moving company gave him a quote of $6,000.
"Definitely thought of, you know, cutting down the amount of things that I took with me, you know, just taking the bare necessities," Kimball said.
His cross-country move from Atlanta to Salt Lake City 15 years ago cost him under $5,000.
Truck rates and gas prices weren’t as high back then, he said.
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"I think if I were moving coast to coast today, I would consider just selling everything," Kimball said.
On top of that, companies are still recovering from pandemic-induced supply chain issues, which also drove prices up.