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View Full Version : ATA promoting the status quo... again


xcel
10-29-2009, 02:44 PM
http://www.cleanmpg.com/photos/data/2/AmericanFlag.jpg All the while the vast majority of its members are pedal to the metal at 5 to 15 over through Chicago on a daily basis :o (cleanmpg.com/forums/showthread.php?p=239380)

http://www.cleanmpg.com/photos/data/501/2009_Freightliner_Cascadia_truck_with_Run_Smart_PCC.jpgWayne Gerdes - CleanMPG (cleanmpg.com) - Oct. 29, 2009

Climate Change legislation will increase Diesel and harm consumers. The Status Quo will increase Diesel and harm consumers even worse!

The American Trucking Associations (ATA) Barbara Windsor told the Senate Environment and Public Works Committee today that the current cap-and-trade proposal will increase the price and volatility of diesel fuel for the trucking industry without significantly reducing carbon emissions.

"ATA strongly supports efforts to reduce greenhouse gas emissions and make this country more energy independent," said Windsor, who is President and CEO of Hahn Transportation in New Market, Md. "However, an economy-wide cap and trade system is not the answer. Proponents of an economy-wide cap-and-trade system say increasing the price of fuel will reduce consumption does not hold true in the trucking industry."

"In our industry, a higher fuel price does not translate into fewer miles traveled because the nation depends on trucks to deliver nearly 100 percent of the food, clothes, and medicines that we use in our daily lives," said Windsor. "Instead, this increase in diesel prices will raise logistics costs within the economy and hurt the American consumer."

Fuel prices do not affect the trucking community’s propensity to save fuel? Total non-sense as most big rig drivers slowed down and began to save an appreciable amount of fuel as soon as diesel rose above $3.00 per gallon last year. Consider the European and some American drivers who are always under 55 mph and saving far more fuel than ANY of the ATA’s members. And they do it day after day, month after month and year after year.

Cap and Trade

Cap-and-trade requires oil refineries to purchase emission allowances that cover their direct refining operations and the amount of carbon produced by downstream combustion of the produced fuels. "The costs associated with obtaining these allowances will be passed on the fuel consumers in the form of higher prices," said Windsor. "A major petroleum supplier to the trucking industry has advised that diesel fuel costs could rise by up to 88 cents."

"Should Congress move forward with a cap-and-trade carbon control system, oil refinery carbon caps should apply only to the refinery's direct carbon emissions and not to the downstream combustion of the products they produce such as gasoline, diesel, and jet fuel," said Windsor.

Or do nothing and watch diesel climb even faster thanks to the inability of most drivers to simply drop it down 5 to 10 mph. Time is money indeed and the faster one drives, the more money is spent. It is already to the point of fuel consumption per hour exceeds the drivers wage per hour.

Price Volatility

Cap-and-trade also will increase price volatility as carbon prices will fluctuate. Volatile fuel prices make it very difficult for trucking companies to accurately predict expenses and pass them on to customers.

ATA is concerned with the support of various investment banks for cap-and-trade. These firms would profit from volatility in the energy futures markets and a carbon derivatives market. Congress must reform commodity trading before creating new derivative carbon markets.

Was cap in trade even a consideration when diesel rose from $1.50 to $5.00 per over the course of a few years? Welcome to Peak Oil, Wall Street Games and or pure greed...

The ATA’s plan

Alternatives as set forth in ATA's environmental sustainability plan include:
A national 65 mph speed limit


Governing new truck speeds to 65 mph or below


Decreasing idling


Reducing highway congestion through highway infrastructure improvements


Increasing fuel efficiency through EPA's SmartWay Program


Promoting the use of more productive truck combinations.


Supporting national fuel economy standards for medium- and heavy-duty trucks.
"Our plan can achieve real results with far less cost and disruption to our industry sector than under a cap-and-trade scenario," said Windsor.

Why not implement your plan today? Does the ATA need congress to do any of the above other than infrastructure improvements and allowing dual and triple trailer combinations in more states?

It is time to get real about saving real fuel and lower emissions. The consumer is already paying for higher fuel and if we do not reign in consumption, there will be a time when we will do without and those same trucking corporations business’ will be severely curtailed or in effect gone. The place to start is through the ATA with the low hanging fruit in a 55 mph limit for your members to adhere too. Once that is in place, continue to move towards the rest.

Regulate yourself and the legislation would become unnecessary.

fuzzy
10-29-2009, 05:33 PM
Why, or why, can't the railroads improve their customer service and put up some more competition?

ILAveo
10-29-2009, 08:06 PM
I love playing the spot the lies and false dichotomies game. This one is a gem:

"In our industry, a higher fuel price does not translate into fewer miles traveled because the nation depends on trucks to deliver nearly 100 percent of the food, clothes, and medicines that we use in our daily lives,"

No one should accept his premise that higher prices don't lead to less travel. Many people have written books and articles on this topic and I've never seen anything that indicates that "travel" has an aberrant demand that is unresponsive to price and I've seen plenty of work that says it does. This is well enough known that the only way he wouldn't know this is if he were willfully ignorant, so I'm comfortable calling this a lie. Higher fuel prices would likely create more local distribution hubs that replace trucks with railways for long haul transit, but keep trucks for short hauls.

The false dichotomy is that increased fuel prices would only cut consumption if it cut travel. Think about typical truck aerodynamics and idling practices. There are plenty of places to improve fuel efficiency if prices were high enough to justify it.

Kurz
10-30-2009, 09:34 AM
The issue I have Cap and Trade is where is the science to back up Carbon Dioxide as the main cause of the current Global warming? The thing that has the most influence the temperatures here on earth is the fluctuating Fusion reaction 93 million miles away and Water vapor.

I believe legislation shouldn't be based on wild fear of Global warming, but more on dwindling reserves and importing oil from unstable regions and local Pollution. Fear mongering is the one thing I don't appreciate coming from the Government.

Oh the fact that prices don't effect travel is pretty true since demand is inelastic.
http://en.wikipedia.org/wiki/Price_elasticity_of_demand

We really don't have any subsutitute for Oil.
Well nothing prevalent yet.

WriConsult
10-30-2009, 02:00 PM
Fuel prices do not affect the trucking community’s propensity to save fuel? Total non-sense as most big rig drivers slowed down and began to save an appreciable amount of fuel as soon as diesel rose above $3.00 per gallon last year.Agree with you 100%. One of the things I enjoyed about last year's high fuel prices was that the trucks slowed way down. During that period I could cruise down the interstate at my usual 60-62mph and not get passed by anytrucks.

"In our industry, a higher fuel price does not translate into fewer miles traveled because the nation depends on trucks to deliver nearly 100 percent of the food, clothes, and medicines that we use in our daily lives,"

No one should accept his premise that higher prices don't lead to less travel. Absolutely right. Sure, we use trucks for nearly 100% of local deliveries. But long distance transport of goods is sometimes by truck, sometimes by rail and (for bulk commodities) sometimes by barge. For many goods, shippers use whatever mode is cheapest. As fuel prices rise, long-distance trucking becomes less competitive, and the ATA knows it.

Chuck
10-30-2009, 03:48 PM
ATA is acting like a number of unions that believed they could make time stand still - like the UAW's attempt to stop robotics.

Lobbying against climate change legislation while doing business as usual will make the pain much greater when fuel prices or emissions laws force them to adapt - just like GM's stonewalling before 2008.

ILAveo
10-30-2009, 04:50 PM
....t.

Oh the fact that prices don't effect travel is pretty true since demand is inelastic.
.......

We really don't have any subsutitute for Oil.
Well nothing prevalent yet.

Here is a link you may be interested in: http://economics.about.com/od/priceelasticityofdemand/a/gasoline_elast.htm
(http://economics.about.com/od/priceelasticityofdemand/a/gasoline_elast.htm)

Here is a highlight from the article: "Espey examined 101 different studies and found that in the short-run (defined as 1 year or less),the average price-elasticity of demand for gasoline is -0.26. That is, a 10% hike in the price of gasoline lowers quantity demanded by 2.6%. In the long-run (defined as longer than 1 year), the price elasticity of demand is -0.58; a 10% hike in gasoline causes quantity demanded to decline by 5.8% in the long run."



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