Fuel Prices

[Olko]

I did some rough calculations of how the fuel prices of today will affect our bottom line compared to a year ago. What I came up with is a figure of aprox $10,000 more for fuel, we do get a fuel surcharge on LOADED miles, but even that doesn't cover the extra cost on the loaded miles. The bottom line still leaves us with aprox $5,500 in extra fuel costs. Can we absorb this, yes we can, should we have to, NO. These figures are based on todays cost, and do not reflect any increases like we had last winter because of the cold winter, and supposed supply problems.

What can we do short term to help ourselves; slow down when driving if you can, avoid companies that over lease trucks on so you can get more miles, don't take that load to a dead area that you know you will have a long deadhead out of, cut back on idle time, if you are going to be laid over in a place like South Texas where freight is usually slow coming out and you are getting there on a Friday afternoon plan on that truck running 24 hours a day for the weekend. Watch where you buy your fuel, I have seen a difference in price of 10 cents or more at fuel stops across the street from each other.

There are other things we can do to save our money, but the thing we need most is an increase in rates or percentages paid by the companies. There is no reason we should be absorbing a loss in income that would appear to me, to be pretty much permanent.

 

[Kyle O]

Well Put! I would like to be a fly on the wall in some of the meetings at FedEx, Panther, TriState. To see what each of their strategies will be to help the contractors deal with the fuel situation (the surcharge is not enough). Expedite is interesting because it is almost completely composed of independent contractors versus truckload that has both ICs and company trucks. What adds to it is uniqueness is that the IC's in most cases are paid on a percentage basis so they can be CERTAIN that the expedite carrier is still making a normal profit while experiencing NO increase in costs. In the truckload business because most IC's are general paid by mileage. They are not used to knowing the carriers cut or wether it has been affected industry trends. What I am driving at is this is an interesting problem somewhat unique to expedite and I am interested to see if and how the carriers address it???

 

[TRUCKNMAMA]

I'm sorry to say I don't think the Carriers care. I became an O/O
and I'm doing nothing. I can't believe work is so slow. I've just taken a look at the Flying j's website to check the prices of fuel and I'm in shock. The prices seem to go up weekly. The runs I'm getting pay well but then I have to sit for two days and my profits are gone. What can we do besides what you already
mentioned, I'm doing that now?
Iris

 

[White Wolf]

Telling It Like It IS

Never happen. The companies would NEVER consider cutting their profits to give us a break. Why should they? They aren't the one's who stand to lose everything if we go broke.

Run Like A Wolf!

 

[guest]

According to analyists in Richmond, VA who I personally know. By MidFall we will see another 30% increase in fuel. Spoke with several O/O's at local T/S here in Norfolk, VA area. They have just came back from WestCoast where they paid anywhere from 1.91 to 2.08 per gal. California is the looking glass for the rest of the states. With that in mind, by first of the year we all can expect to be paying 2.00 per gal. Ugh!!