Why are Trash Prices Skyrocketing?

Trash prices aren't just creeping up; they're leaping up! The surge in trash prices isn't confined to San Diego alone but has spread across California. Global Disposal's goal is to keep you well-informed of waste market trends, so you are able to budget and communicate to your team, residents and commercial tenants why trash prices are increasing substantially.

Here are the major factors contributing to this increase. We'll lay these out in bullet points for a fast and organized read:

Mandatory Organics Recycling (SB 1383) Implementation - the trickle down costs are staggering

• Haulers must introduce a third waste stream
• Acquisition of new trucks for the hauler's fleet
• Expanded workforce with more drivers
• Increased truck maintenance and fuel costs
• Increased insurance expenses
• Hike in registration fees
• Expenses associated with obtaining organics containers
• Cost of recycling organic matter: Choosing between shipping matter to out-of-state processing facilities or establishing local facilities (e.g., Miramar facility, estimated cost of $77 million).

Escalating Labor Costs

• Driver scarcity affects all haulers, triggering a competition for driver wages
• The surge in the cost of living leads to heightened labor expenses for all positions, including within the waste industry.

Impact on Landfill Fees

• In response to the escalating costs of building organics facilities and other hauler expenditures, landfill fees have surged by approximately 40%
• These fees are projected to increase even more, potentially rising 71% by 2025.

Hindered Competition and Limited Hauler Permits in San Diego

• The limited number of hauler permits in San Diego has curtailed competition, enabling prices to remain high and continue ascending without competitive controls
• The basic premise of supply and demand on display

Electric Vehicle Mandate for Haulers

• Electric trash and recycling trucks, while environmentally friendly, come with a significantly higher price tag, adding to operational costs
• The state has imposed regulations requiring haulers to invest in EVs. Here’s a great article that explains this in detail. https://calmatters.org/environment/2022/09/california-phase-out-diesel-trucks-zero-emission/‍

Inflation's Impact - The overarching increase in the cost of living affects everything, including trash services.

If you have any questions or concerns, please feel free to reach out to us. If you'd like to schedule a lunch and learn, we'd be happy to come to your office and answer any questions your team has.