Fuel Costs

davekc

Senior Moderator
Staff member
Fleet Owner
Just how high will the prices rise?
We had a truck in Laredo Tx today and they raised their price another 5 cents today. Unbelievablex(
Davekc
 

jalapenokid

Expert Expediter
Hi to all of you,
I opened the home page from EOL, and read the suggestion about sending a letter template to your State Senator, I did it and sent it to my State Senator Carl Levin, I feel good, I did my part hopping it wil do some good to all of us, question is: Can we all do the same? Let's do it and make our voices ring our State Senators ears and express to them our main concerns, it cost nothing and we can make a difference for our own good, or we keep complaining to ourselves. Thanks EOL, a great idea and let our own actions make a difference.
Juan Rivera ( Sorry for my spelling and typos, 35 years in this Great Country and still learnning the languge)
O/O a driver myself with cargo vans leased to a great Expeditting Company, and with serious concerns about this topic.
Best regards,
J Rivera (Jalapeno-kid)
:+ :-( :)
 

LDB

Veteran Expediter
Retired Expediter
According to dieselboss.com the J in Washington state is 2.799 now so $3 a gallon can't be too far behind. Thankfully they've opened Alaska again and that should help when it starts coming in. It's crazy for diesel to be higher than gasoline though when diesel is made with the dregs of the barrel. I'm going to find the template and send it to my elected critters as well.

Leo
truck 4958

Support the entire Constitution, not just the parts you like.
 

RobA

Veteran Expediter
Charter Member
High fuel costs are expected to continue for at least two years. It isn't a situation limited to the USA. The market for fuel is expanding while the supply of crude is shrinking.
I don't think writing a po,litician will do any good.
Opening the Alaska reserves will help China and Japan more than the continental USA according to one article I read.
The solution is adjust your business practices to the new reality.
Slow Down
Don't Idle
Deadhead as little as possible
Spec and buy the most fuel efficient engine/ transmission you can.
Areodynamics
etc
etc
etc.

It's the new reality out there folks, maybe it will cull some of the weaker operators out. Freight rates will have to rise; and if you can you might put some of that rise in your pocket rather than the pocket of an Arab sultan.
 

davekc

Senior Moderator
Staff member
Fleet Owner
I think it is going to take alittle more than fuel surcharge legislation to combat the problem. Landstar expedite trucks were coming out of Laredo with .75 to .85 cent per mile freight. My team said they were taking cheap freight because they sat there all week.
That is a recipe for trouble. Many carriers are hauling freight under the tariff rates just to keep trucks moving. Fuel surcharges will not address that issue.
Davekc
owner
20 years
 

RichM

Veteran Expediter
Charter Member
From Thursday night to Friday morning fuel in FL rose .03 per gallon.I deadheaded 200 miles to make a pick up in Tampa,drove 477 miles to Atlanta and it cost me $150.00 for fuel. Filled up in Wildwood FL ,$170 for 75 gallons, and this customer has a contract with no fuel surcharges allowed so it's my last time with them.
 

davekc

Senior Moderator
Staff member
Fleet Owner
Yes, I wouldn't haul anything for them either. One can't afford to.
No point in hauling for nothing.
Cheaper and more cost effective to stay at home under that plan.
Davekc
 

raceman

Veteran Expediter
I have not been one to scream about fuel prices because of the way I look at them. I compare the price to things such as cola, water and so on and even though fuel cost are high it just does not seem that bad. If you look at what we as a Country do to cause many of our problems it just does not seem that bad. We can do things that will make a difference but we choose not too. We do not want to build the plants needed because of the enviroment and we ..... well I will stop there. I do begin to get bothered by the prices when my trucks are being run 400 and 500 miles empty without pay to get a load or be near a possible load. I have been as happy as could be over the last year until mechancial doom set in and almost cost me everything. Well I dug through that and then fuel went through the roof. I have to say after looking at my books and looking at how everything is going with fuel and freight, I too, am starting to come undone.

Now I know we are not going to come together as a tight knit group and kick and scream to get the attention we need. That being the case you may see my POSTs start to become more of a venting process. If I don't vent here I am going to blow in the direction my bread is buttered and that could be suicide. So if I seem to going insane please forgive me.

I can honestly say my goal of five trucks is starting to slip as I have stated before. I have to make some changes or get happy to go back to one truck. I am starting to look at all my options but I really do not blame this on the fuel price. If everything was managed properly and fairly that fuel price would be of little concern.

One of our biggest concerns should be that there is a line of other people and trucks waiting to take our place and the companies know that and therefore we have no leverage. No voice. I wish we could simply band together to correct the issues with the carriers, the fuel cost and many other tax and road concerns. Knowing that is not going to happen, I am going to throw my toaster out the window.


Raceman
Owner Two Straight Truck.
Part time driver of one of my trucks and local TT.
15mon.OTR Expediting
1 yr local Expediting
Line Haul TT 2mon.
OTR Straight Truck Plt to Plt off and on 5 years.
Based in Cincy Ohio
Currently at Express-1
 

muleteam1

Expert Expediter
muleteam1

Fuel seems to be a catch 22..The customer is being hit with 20+% increases in shipping costs which slows the freight movements.The driver is being hit with these same increases and in most cases must travel excessive miles to snatch the freight thats available.The driver realizes the expense on both ends.We either run at a loss or we don't run at all.
While we wait for the the economy to accept these costs and move on,some of us will bite the dust just as we did 3 years ago.Drivers who thought they were making big money but never understood how many of those dollars were not theirs to spend,went broke.
I think we need to salute the oil companies as we pass them on the road..They are much better business people than we are.They will sit back and put you out of business without any feelings of remorse.
Are we capable of saying "NO" I'm not going to run at a loss.Either get the rates up and bill the appropriate fuel surcharges or we don't run the freight!!Well history shows us that this will never happen.
So the next time you feel the need to cry about the business please remember that you set the bar.
 

davekc

Senior Moderator
Staff member
Fleet Owner
What also is a surprise is pending legislation for addition fuel tax in many states. Some like AR want to add another .05 cents per gallon. Hopefully those bills won't pass.
Probably another reason to join OOIDA
They seem to be the only ones fighting this.
Davekc
owner
20 years
 

dukesadog

Expert Expediter
Our wonderful governer Jeb has some ideas of his own as well like coming up with the idea to impliment fines to shipping companies that add a fuel surcharge and create higher shipping rates into "my state" I thought the state belonged to the people? but maybe there was a back alley deal

If that passes I'm moving

dukesadog
neptune beach
 

bryan

Veteran Expediter
HI
FUEL PRICES ARE BASED ON THE PRICE PER BARREL OF OIL WHICH IS BASE ON OIL SPECULATION. JEB BUSH IS AN OIL SPECULATOR SO IS HIS BROTHER.
THUS DON'T LOOK FOR ANY DROP IN PRICES TILL 2008.
OIL SPECULATOR SET THE PRICE BASED ON WHAT THEY THINK WE WILL PAY. THUS MORE BAD NEWS OIL CONSUMION WAS UP DEC,JAN,AND FEB. SO UNTILL WE QUIT BUYING LARGE SUV'S AND PICK-UPS AND DRIVING 75 MPH IN A 65 MPH ZONE THEY SAY THEY ARE GOING TO KEEP RAISING PRICES.
THANKS AND HAVE A GOOD ONE
 

raceman

Veteran Expediter
Muleteam1, I am not crying about the business. I love this business or I would not put up with all we put up with. I am simply trying say we will not stop and therefore we have no voice. When a Union goes on strike they stop everything and therefore get some attention. We drivers dont just stop and therefore are voices are more like a faint squeak.
I will begin crying at $3.00 a gallon until then I like many others are just ranting. At $3.00 I will most likely cry and look for another venture.


Raceman
Owner Two Straight Truck.
Part time driver of one of my trucks and local TT.
2 years OTR Expediting
1 yr local Expediting
Line Haul TT 2mon.
OTR Straight Truck Plt to Plt off and on 5 years.
Based in Cincy Ohio
Currently at Express-1
Father of 4 children
Grandfather of 1 boy
3 years without full use of my mind
 

muleteam1

Expert Expediter
Raceman,
I think I took the oportunity to vent my frustrations regarding fuel costs.
Honestly,I refuse freight without fair fuel surcharges.We all pull for companies that have customers who are "too good to pay" NLM (GM and Chrysler), broker freight such as Ryder etc.Every time we haul that freight we take 10-13 cpm off the top.I get a charge out of watching these carriers who say they are paying increases in your cpm then book freight that takes that additional 10-13cpm to run.
Most drivers don't realize they are taking the hit.
I turned down a load from Kendallville,In. to Renton,Wa. Friday. 2226 paid miles with a 5% surcharge.($160.00) by the time I ran the load and deadheaded @ $.20 cpm to a reasonable lane,I would have been running for approx $.61 cpm after fuel. That is not a rate I can stay in business with. I believe that this is a business and should be operated as such.. I invested $120,000.00 in new replacement equipment in November and if I'm to go out of business I would rather do this on my terms rather than burn my equipment to the ground due to the greed of our resourceful president and his buddies in the oil business.

muleteam1
 

merkurfan

Expert Expediter
I'm sorry.. How is the cost of fuel the presidents fault? And how is it helping him?

Last I checked oil speculators are the cause of high prices. Both Bush and Cheney had to place all their assets in a blind trust. They have NO idea what they own.

Fuel would be just as high if we had Kerry in office. Probably higher. As we would not have opened Anwar.

If you want to blame someone for the high cost of fuel here is the list in no preticular order. Speculators, growing countries like China, greenpeace and their buddies (no refineries, hard to drill demesticly) Opec, Fox the president of Mexico (do you have any idea how much oil is down there?) and Russia (they also have a lot of oil) Jeb Bush and Arnold for pitching a fit about off shore drilling.

Also if your company is only paying a D unit .20 a mile for deadhead it is time for a change. There are compaines paying more than that to cargo vans to deadhead. Either that or you and the other contractors need to band together and demand more for deadhead.
 

muleteam1

Expert Expediter
You buy into whatever makes you feel better about these fuel costs. I suppose you believe the war in Iraq was to save the poor people from Saddam.
But the real point here is what company is paying more than $.20 for deadhead ?? I'm wide open to suggestion at this time.You've sparked my interest..

Thanks


muleteam1
 

merkurfan

Expert Expediter
At least my theory has some facts behind it. I have yet to see anything that says it's the presidents fault. I have seen lots of proof that demand is very high. Iraq was about freeing the people it was also about disarming a terrorist and his sons. I am sure the oil was also on the radar. I also think it is a foot hold for Iran.

In orentation for Panther I was told .25 a mile for cargo van, .50 for straight truck (first 100 on you) and .35 for ALL tractor miles unloaded.

Base rates for van are .77 sraight truck 1.20 and tractor 1.65 (not 100% sure on tractors)

Don't ask me about panther, just did my first run today. So far, so good. 220 miles at 98 cents a mile with FSC. I drive a cargo van.
 
Top