JET FUEL DEMAND HAMPERED BY DRIVER SHORTAGE

The decline in jet fuel demand experienced at the onset of the pandemic is now being replaced with a boom in travel and a need for drivers to deliver fuel accordingly. A shortage of truck drivers spurred by pandemic layoffs has created supply chain problems for timely fuel delivery to support travel demand as well as aerial firefighting efforts in areas of the Pacific Northwest. While larger airports are typically supplied with fuel via pipeline, many smaller airports rely on the delivery of jet fuel by truck.

Data from the U.S. Energy Information Administration outlined a 38 percent drop in jet fuel supplied in the nation during 2020 compared to pre-pandemic levels in 2019. The demand for jet fuel has increased by an estimated 28 percent since the beginning of 2021. Earlier this month, the U.S. Energy Information Administration indicated demand was at 78 percent of 2019 levels. The administration said the inventory of jet fuel in the U.S. is at or above the five-year average indicating fuel delivery issues are likely rooted in supply chain problems.