Diesel: The truck stops here

[xcel]

From haulers to loggers to landscapers, soaring fuel costs hit the bottom line but cutthroat competition keep price hikes at bay.

Steve Hargreaves - CNNMoney - March 27, 2008

Eventually the drivers will drive more efficiently, figure out a way to pass along the increase or go out of business. -- Ed.

NEW YORK -- The kid who delivers your pizza may be charging you an extra buck for gas, but for the guy that trucked the tomatoes, hauled the dough or milked the cows, passing along the fuel increase isn't as easy as pie.

From truckers and farmers to loggers, construction workers and fishermen, skyrocketing diesel prices are pushing what many consider the backbone of the American economy right up to the breaking point.

"I'm in debt," says Jim Gossett, an owner/operator truck driver with a wife and daughter in Chapel Hill, N.C. "Do I turn in all my equipment, potentially lose my home?"

For the last nine years Gossett has driven a truck. For the last few he's been running a specialized carrier, delivering boats to marinas and dealers across the country.

He says his profit margin used to be around 25%. But with the near-tripling of diesel prices over the last few years, he now says that has been cut to 5%.

He says cutthroat competition in the industry means he's unable to pass along the increased cost.

Others who use huge amounts of diesel for a living say the same thing.

"You can't get any work if you raise your prices," said Tyson Clay, filling up the tank for his bulldozer at a gas station in Camden, Ala. "You just grin and bear it, people are only going to pay so much to get their land cleared." … [Read More]

[toastblows]

Its funny, my friend who owns a farm with his brothers paid 3x as much for diesel on the farm, seed was up, fertilizer was up huge, and......and.....he made the most money in his 10 year history owning the farm. I guess maybe truckers need to stop screwing each other and start screwing the consumer. Corn, Soy, Wheat, all up huge from 2006 to 2007. People are still eating food, not much you can do about it. So pass on the costs or screw yourselves out of a job. We all need crap that is trucked, its not like we are going to fly to japan to get our sony tvs, or meet up in Kansas for wheat to make bread.

"The consumer impact is limited," said Faucher. "Transportation costs are a pretty small share of overall consumer prices."

About time. Add 2 cents per lb of freight for diesel only, no brokers cuts, problem solved.


P.S. this guy is an idiot

"We're limited in our options," he says. "It's not like you can go down the street and pick up a six-figure office job just because the cost of fuel is high."

I cant go down the street either and get a 6 figure office job, and i live in a large metro area. Maybe we can both go get MBAs, or other higher education, then we will be able to get 6 figures. Its going to require us to move out of our comfort zone though....i know its rough, but keep complaining about how you have no opportunity because you wont try.

[Robert Lastick]

Funny, I stopped into a Shell Truck stop off I-39 to pick up a cup of brutal coffee and about 1/2 of the trucks parked there were running with no one in them.

These prices can't be hurting them too bad, I guess?

[kngkeith]

Toastblows-
Ask your friend why he made so much more money. Perhaps because the commodity he raises happens to be one of those that have increased in price? Ask him if he sets the price.

Keith

[toastblows]

Originally Posted by kngkeith

Toastblows-
Ask your friend why he made so much more money. Perhaps because the commodity he raises happens to be one of those that have increased in price? Ask him if he sets the price.

Keith

I think i was clear that he doesnt set prices, yet raising the commodity price industry wide resulted in record profits. My example was pointing out that transport is not a commodity this country can live without. If you jack up the prices, there will be cheating of course by scabs....but the industry will not disappear. We cannot function in modern society without trucking....and raisings your load rates by the lb 1, 2 cents....or $500/day for a trailer load....is clearly not going to stop demand for trucking.

[jsmithy]

Railroads are set to make a comeback I would say.

[kngkeith]

OK, so there are things owner operators/small contractors can do to help their situation. But it has been nearly a perfect storm, with fuel going through the roof and freight dropping off. I do feel for the guys, some good business men, that have huge investments in equipment and have to take anything to help make the payments.

There are a lot of people with their backs against the wall- call them misguided, say they had poor judgement, explain how they need to learn the lesson. Please don't pass them off as idiots.

Keith

[98CRV]

Originally Posted by kngkeith

OK, so there are things owner operators/small contractors can do to help their situation. But it has been nearly a perfect storm, with fuel going through the roof and freight dropping off. I do feel for the guys, some good business men, that have huge investments in equipment and have to take anything to help make the payments.

There are a lot of people with their backs against the wall- call them misguided, say they had poor judgement, explain how they need to learn the lesson. Please don't pass them off as idiots.

Keith

I am glad you spoke up. It is so easy to judge another without having to walk a mile in his shoes. As the saying goes, farming looks mighty easy when your plow is a pencil and you are a thousand miles from the nearest cornfield.

[Earthling]

Originally Posted by jsmithy

Railroads are set to make a comeback I would say.

I saw a story somewhere that said that Warren Buffet is buying railroad stock, so you may be onto something.

An article on the subject:

http://money.cnn.com/magazines/fortu...3079/index.htm

Maybe we should invest in railroads right about now...

Harry

[basjoos]

I haven't seen much evidence of trucks slowing down on the interstates. An occasional independent trucker, but that's about it.