Truckers Expect Record High Fuel Costs - Forbes.com

[aripen]

WASHINGTON -

Truckers see no exit from a fuel price "crisis" and expect diesel bills to break records in 2008, the industry's main trade group said Monday.

The American Trucking Associations said current price forecasts show the industry will spend $135 billion on fuel this year, up from $112.6 billion in 2007.

Diesel fuel rose more than a penny overnight to a new record Monday, surpassing a national average of $4 a gallon, up from $2.75 a year ago, according to AAA and the Oil Price Information Service. Meanwhile, light, sweet crude for April delivery fell $3.79 to $106.42 a barrel on the New York Mercantile Exchange in afternoon trading.

The ATA is asking Congress and the Bush administration to address the "crisis situation and move immediately to take steps to increase diesel fuel supply," including increased refining capacity and exploration of Alaska's Arctic National Wildlife Refuge and Outer Continental Shelf.

In the air, rising fuel prices have led to rising ticket prices. Some of the nation's largest airlines, including United and Continental, last week increased their fares by as much as $50 round-trip to help offset surging fuel prices.

Fuel is gaining on labor as the largest expense for motor carriers, said ATA President and Chief Executive Bill Graves. At close to 25 percent of total operating expenses, fuel typically represents the second highest expense.

The cost to fill fuel tanks on a typical tractor trailer has increased 116 percent, or $615, in five years, according to the ATA, whose members include United Parcel Service Inc. (nyse: UPS - news - people ) and Knight Transportation (nyse: KNX - news - people ) Inc. Trucks haul 70 percent of all freight and rising fuel costs could raise the cost of their cargo, including food, retail and manufactured goods.

 

[greg334]

I paid $4.29 right now for diesel to fill up my brother-in-law's Ford I am using ($120 worth). I almost paid $4.49 and I saw $4.79 on the way down to Southgate for dinner and they had two dairy trucks and a pickup filling up at the diesel pumps.

Expecting? it is already here.

 

[TJ959]

I have been sick for a week and not really up to date on prices but I had to go to the doctor yesterday and I had to buy fuel to get there. FFFFFFFFour ninteen a gallon. Now I'm Scotch and tighter than bark on a tree. Can you imagine the emotions going through me while pumping fuel at that price? My blood pressure went up off the scale. It was all I could do to squeeze the nozzle enough to put in ten gallons. Even then , I had to stop a few times and wipe my brow and maybe even a few tears. HOOOT MON Jack Benny must be spinning in his grave.

Seriously though, this must influence things on the load acceptance level. If it goes where you will need to deahead out a ways, it's no longer a smart bet to run it. Deadhead can kill you at these fuel prices. Discounting freight rates or discounting the fuel surcharge are starting to be used by some dispatchers to get you out of slow areas. That's just selling you short too. Good luck if you do it.

 

[greg334]

Can you imagine the emotions going through me while pumping fuel at that price?

I don't have to imagine, I live it.

 

[Robsdad]

Question:
A friend called yesterday and said he was listening to a program on XM. They said according to him the price of oil per barrel would exceed $127 per barrel by Sept.08. In this case he went on to say diesel would go to over $6 per gallon and gas would be hovering around the $5.50 mark. Did anyone else hear this and are these numbers in line with what was said.

 

[rdtrpn]

Question:
A friend called yesterday and said he was listening to a program on XM. They said according to him the price of oil per barrel would exceed $127 per barrel by Sept.08. In this case he went on to say diesel would go to over $6 per gallon and gas would be hovering around the $5.50 mark. Did anyone else hear this and are these numbers in line with what was said.

Quote:I have been sick for a week and not really up to date on prices but I had to go to the doctor yesterday and I had to buy fuel to get there. FFFFFFFFour ninteen a gallon. Now I'm Scotch and tighter than bark on a tree. Can you imagine the emotions going through me while pumping fuel at that price? My blood pressure went up off the scale. It was all I could do to squeeze the nozzle enough to put in ten gallons. Even then , I had to stop a few times and wipe my brow and maybe even a few tears.

Like I said a truck drivers strike. Its getting to the point where its not even worth driving if you have to dead head or reposition w/out being paid to do so. As prices continue to rise, unless we or congress does something ( lol yea right! this country is a subsidiary of Halliburton anyway with cheney in office ) it wont be worth it to drive period no matter what the vehicle. commenting on the quote of tj959 above, its not even worth it to go to the doctor. You might as well stay home and suffer being sick. Because if your pumping fuel it will make you sick (and tired). It WILL get worse before it gets better. $5 ($4.75 national average) a gallon for fuel is the benchmark for a truck drivers strike! No exact date necessary just go by the fuel price. you can try writing your congressman if you rather, good luck how long before that nets results. A strike in a matter of a couple weeks.

 

[greg334]

If there is a strike, count on one thing happening, the public will turn on the truckers like never before. There is right now a fight going on with trucks and the public and the truckers don't care which is resulting in losing the fight.

But I don't see any strike happening at all. The culture is not what it used to be, many can not afford to even take time off to do simple things and others will lose their job if they strike.

This is not the 70's, there is no more Teamsters and there is no Hoffa to inspire and rally the truckers.

Oh and one last thing, if you don't become politically involved but rather think like other truckers who are ignorant that political involvement will not lead to anything but a waste of time, you got to wake up and look around. The only reason that we are on the short end of the stick is because people out think us and we don't complain the right way. If a very small group of people in some way off land called California can step on the constitution by being vocal, and showing up to their representatives offices in mass or taking them out on field trips, what says we can't use the same tactics? I have yet seen this happening at all in this profession. Learn about Hoffa and how he did things, strikes were not the catalyst for solutions.

AND if it hits $5 a gallon nation wide, it may not be all that bad when you really look at the bigger picture. It will thin out the herd and may lead to better rates in the long run.

 

[piper1]

I paid 4.13 a gallon on I-275 at exit 8 in MI and I thought it was nuts, sounds like maybe I got a deal for MI.

 

[blaaze]

Cost of Fuel should be the least of one's worries.

> LAST NIGHTS SESSION WAS ONLY THE FOURTH TIME IN 176 YEARS THAT CONGRESS CLOSED ITS DOORS TO THE PUBLIC


Word has begun leaking from last nights special, closed-door session of the United States House of Representatives.

Not only did members discuss new surveillance provisions as was the publicly stated reason for the closed door session, they were also bluntly warned about:

The imminent collapse of the U.S. economy to occur by September 2008,

the imminent collapse of US federal government finances by February 2009,

the possibility of Civil War inside the USA as a result of the collapse,

advance round-ups of "insurgent U.S. citizens" likely to move against the government,

The detention of those rounded-up at "REX 84" camps constructed throughout the USA,

the possibility of retaliation against members of Congress for the collapses,

the location of "safe facilities" for members of Congress and their families to reside during expected massive civil unrest

the necessary and unavoidable merger of the United States with Canada (for its natural resources) and with Mexico (for its cheap labor pool),

the issuance of a new currency - THE AMERO - for all three nations as the proposed solution to the coming economic armageddon.

Members of Congress were FORBIDDEN to reveal what was discussed

 

[greg334]

I paid 4.13 a gallon on I-275 at exit 8 in MI and I thought it was nuts, sounds like maybe I got a deal for MI.

Yep that is a good deal, I am going to take my pick up truck to the corner station and get it filled, the owner will give it to me at his cost which is $3.99 a gallon - his posted prices is $4.38.

 

[Robsdad]

The only way a truck strike will work.
The 5-6 largest companies shut their trucks down for a week.
This will key the owner operators to do the same. The end result. You better have food in the freezer, food in the cupboard and gas in the tank. It would start tightening things up in 2 to 3 days.
Will the large companies do it? They may be forced to. Shippers and Consignees cannot continue to pass this on to the end user. In today's economy some people are doing without the necessities now.
What do you think?

 

[wallytrucker1]

Ok, I'll bite, how is this fuel crisis the vice presidents fault and please use facts, not the liberal spin you heard on Air America..

 

[greg334]

Ok, I'll bite, how is this fuel crisis the vice presidents fault and please use facts, not the liberal spin you heard on Air America..

Can't you figure it out, see everything is the Bush administrations fault.

From the 1920's to today, bush and Cheny has a hand in all of it. you know that the great depression was really a conspiracy to get control of the oil and it went bad, so we ended up with Franklin to straighten up the mess and give us social security. The second world war was not because the Japanese attacked us for no reason at all but because Bush decided to cut them off from any oil to make sure our people had cheap gas to drive around in our polluting cars. Korea was all about weapons of mass destruction and our need to setup a 50 plus year way to feed Halliburton and the war machine. Everything leads right to the present administration and how they are controlling things for the last 75 years.

Strike? yes, strike so I can get better paying freight.

 

[nobb4u]

"The ATA is asking Congress and the Bush administration to address the "crisis situation and move immediately to take steps to increase diesel fuel supply," including increased refining capacity and exploration of Alaska's Arctic National Wildlife Refuge and Outer Continental Shelf"
And Ladies and Gentlemen here is the answer to WHY fuel prices are so high it has nothing to do with the Middle East or shortages. All the oil companies want to do is start drilling the far north. And why not if they would just let the people who invent things have free reign by the time all the oil is gone then we should have a vehicle that is not dependent on fossil fuels. The oil companies hold patents on engines that use little or no fuel, but they have no interest in mass production of a vehicle that is going to take away their livelihood. But can you just imagine how much a barrel of oil from the Far North is going to cost. Their production costs are going to be astronomical. After all the price of diesel is sky high and you can bet they will sell it to themselves at a premium. (after all why give yourself a discount cost of business is tax deductible) and they will also get that free government money to fund their exploration cost as they are doing us all a favor by finding more oil. Just my opinion and ramblings.
"WHY ARE WE STILL DRIVING AN INTERNAL COMBUSTION ENGINE?"

 

[OntarioVanMan]

"The ATA is asking Congress and the Bush administration to address the "crisis situation and move immediately to take steps to increase diesel fuel supply," including increased refining capacity and exploration of Alaska's Arctic National Wildlife Refuge and Outer Continental Shelf"
And Ladies and Gentlemen here is the answer to WHY fuel prices are so high it has nothing to do with the Middle East or shortages. All the oil companies want to do is start drilling the far north. And why not if they would just let the people who invent things have free reign by the time all the oil is gone then we should have a vehicle that is not dependent on fossil fuels. The oil companies hold patents on engines that use little or no fuel, but they have no interest in mass production of a vehicle that is going to take away their livelihood. But can you just imagine how much a barrel of oil from the Far North is going to cost. Their production costs are going to be astronomical. After all the price of diesel is sky high and you can bet they will sell it to themselves at a premium. (after all why give yourself a discount cost of business is tax deductible) and they will also get that free government money to fund their exploration cost as they are doing us all a favor by finding more oil. Just my opinion and ramblings.
"WHY ARE WE STILL DRIVING AN INTERNAL COMBUSTION ENGINE?"

Drilling in the Arctic or Gulf is NOT the answer...there's no shortage of oil....
If only there was a way to disconnect North America or even the Western Hemisphere from the world price of oil and set our own price.
Example: Canada is oil self-suffiecent and they are connected to the world market prices.

I've said it before...everyone knew this day was coming and only gave lip service to alternate fuels....nows the time to pay the grim reaper.....

 

[greg334]

Drilling in the Arctic or Gulf is NOT the answer...there's no shortage of oil....
If only there was a way to disconnect North America or even the Western Hemisphere from the world price of oil and set our own price.

OVM,
We have two problems here, one is that we import too much oil and the other is we don't protect our own supply by drilling for it. ANWR is not the worry for many of us, it is the gulf and thanks to our congress, the stupidest move they made was saying that we can't drill in places like the great lakes or off the shores of Florida and Mexico and Cuba has granted China access to the same oil in that area of the gulf. Exploring for oil will not harm anything, the world is not going to stop with the people in Florida or kill off the animals in the arctic. The earth is a very resilient thing believe it or not.

Now the price of oil we face has nothing to do with the supply of oil, it has to do with the lowering of interest rates and the falling dollar. We better wake up soon as a country and put a stop to the lowering of interest rates and find some way to prop up the dollar, because who gives a sh*t about foreclosures when we can't food and energy.

 

[OntarioVanMan]

Greg...I agree to a point....IF we drill and ever find enough deposits....I would still suggest we N/A or western hemi, separate from the world market...you know create our own oil economy. That would elimanate alot of outside pressures that aren't specific to our needs...like high winds on the North Channel and all those other stupid excuses to raise the price.

 

[TwoMotherTrkrs]

Geez Blaaze, I agree with you. Too much Rollye Janes and George Noory for us, huh? Or do others just have their heads in the sand?

Barb

Cost of Fuel should be the least of one's worries.

> LAST NIGHTS SESSION WAS ONLY THE FOURTH TIME IN 176 YEARS THAT CONGRESS CLOSED ITS DOORS TO THE PUBLIC


Word has begun leaking from last nights special, closed-door session of the United States House of Representatives.

Not only did members discuss new surveillance provisions as was the publicly stated reason for the closed door session, they were also bluntly warned about:

The imminent collapse of the U.S. economy to occur by September 2008,

the imminent collapse of US federal government finances by February 2009,

the possibility of Civil War inside the USA as a result of the collapse,

advance round-ups of "insurgent U.S. citizens" likely to move against the government,

The detention of those rounded-up at "REX 84" camps constructed throughout the USA,

the possibility of retaliation against members of Congress for the collapses,

the location of "safe facilities" for members of Congress and their families to reside during expected massive civil unrest

the necessary and unavoidable merger of the United States with Canada (for its natural resources) and with Mexico (for its cheap labor pool),

the issuance of a new currency - THE AMERO - for all three nations as the proposed solution to the coming economic armageddon.

Members of Congress were FORBIDDEN to reveal what was discussed

 

[TwoMotherTrkrs]

Cost of Fuel should be the least of one's worries.

> LAST NIGHTS SESSION WAS ONLY THE FOURTH TIME IN 176 YEARS THAT CONGRESS CLOSED ITS DOORS TO THE PUBLIC


Word has begun leaking from last nights special, closed-door session of the United States House of Representatives.

Not only did members discuss new surveillance provisions as was the publicly stated reason for the closed door session, they were also bluntly warned about:

The imminent collapse of the U.S. economy to occur by September 2008,

the imminent collapse of US federal government finances by February 2009,

the possibility of Civil War inside the USA as a result of the collapse,

advance round-ups of "insurgent U.S. citizens" likely to move against the government,

The detention of those rounded-up at "REX 84" camps constructed throughout the USA,

the possibility of retaliation against members of Congress for the collapses,

the location of "safe facilities" for members of Congress and their families to reside during expected massive civil unrest

the necessary and unavoidable merger of the United States with Canada (for its natural resources) and with Mexico (for its cheap labor pool),

the issuance of a new currency - THE AMERO - for all three nations as the proposed solution to the coming economic armageddon.

Members of Congress were FORBIDDEN to reveal what was discussed

Geez Blaaze, I agree! Too much Rollye James and George Noory for us? Or do others have their heads in the sand?

 

[greg334]

Greg...I agree to a point....IF we drill and ever find enough deposits....I would still suggest we N/A or western hemi, separate from the world market...you know create our own oil economy. That would elimanate alot of outside pressures that aren't specific to our needs...like high winds on the North Channel and all those other stupid excuses to raise the price.

I see what you were saying but South America has to straighten up politically and become stable before that idea can formulate. With the kooks down there who are pandering to the leftist and the others who are trying to keep a lid on their own people, oil is the least of their worries. The thing is, that they don't have a mobile society like ours, a bunch of them are still have an agricultural based economy, so what we think as a need for our national security, they can or may do without. Just look at Brazil, producing alcohol since the 60's in large scale as a by product of their sugar manufacturing. The reason is that they have very high duties on imports, VW and Mercedes built plants down there in the 50's to avoid the duties followed by other manufactures - Ford of course was building cars there in the 20's.

The US has to get off this idea that we need to look for alternative energy sources right now. We need to deal with a supply issue and solve that first before anything else, otherwise we will dig ourselves a hole that we will never get out of.