Tuesday, July 14, 2009

Money & Business

Beyond the Barrel

Truckers Call for Help on Diesel Prices

April 25, 2008 03:32 PM ET | Marianne Lavelle | Permanent Link | Print

How would you like to pay $1,000 for a fill-up at the gas station? If you drive a truck, you could well be forking over that kind of money a few times a week. The nation's average price of diesel fuel has ratcheted up 24 percent since the start of the year to $4.14 per gallon—that's up 45 percent over a year ago.

The price of oil may be annoyance or hardship for most of us, but it is an outright threat to the livelihoods of many of the people who bring us our food, clothing, electronics, and toys. If you find yourself behind slow-moving trucks on the interstate, flying the American flag, or if you see a convoy of rigs making their way around the streets of Washington, D.C., on Monday, it's the truck drivers' call for help.

Driver Michael "J.B." Schaffner, one of the organizers of a rally planned at the Capitol on April 28, says he's looking for one thing from lawmakers: "To care about the people that employ them. To start listening more than they have been, and start reacting." Schaffner, who was forced by fuel prices to give up driving his own rig last year and now drives for a small company, has heard it said that the market sets the price of oil, and that there's little Congress can do. "They can hide behind that all they want," he says. But he thinks there's plenty that they can do, including such things as taking away Big Oil tax breaks, opening up more U.S. areas for drilling, and getting petroleum alternatives to market.

Schaffner and his brother are getting the word out about the rally through their website, The American Driver, which had 2 million visitors in just the past month (compared with about 1 million visitors all last year.) Another truck driver and rally organizer, Mark Kirsch, says that many of the site visitors are not other drivers, but just other citizens and consumers like them, who are also feeling the pinch. "My paycheck hasn't doubled or tripled in the last year, but with food, fuel, heating oil—everything else has," he says.

While small truckers like Schaffner and Kirsch try to make their voices heard in their way, the big trucking companies also are asking the federal government to act. The American Trucking Association was on Capitol Hill this week asking for a release of oil from the Strategic Petroleum Reserve. Swift Transportation Vice President Dave Berry said that although the SPR doesn't have enough oil to permanently alter supplies, "We believe strategic releases...could temporarily increase the supply of crude oil and hopefully help restore rational behavior to the petroleum markets. This type of government intervention could drive speculators out of the market and help ensure that petroleum prices are once again driven by supply and demand."

Whether we know it or not, we all are paying for that $1,000 fill-up at the gas station. From the first quarter of 2007 to the first quarter of 2008, the price that trucking companies charge to haul freight increased 4.8 percent, the American Trucking Association says. That's just about what the increase in food prices were in the first quarter of 2008, according to the Bureau of Labor Statistics. "We are very concerned that out-of-control energy prices will greatly magnify our current economic slowdown and delay our economic recovery," Berry testified.

Schaffner puts it another way, "It's the biggest vicious cycle I've ever seen in my life."

Tags: gas prices | diesel fuel

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Reader Comments

"You're"

It's "you're" not "your" get it right! and while you mr. motorcycle may have made an excellent choice in buying yourself a nice crotch rocket...truckers can't really deliver thousands of pounds of goods via motorcycle...

They have a right to complain. Oh and another thing, thank the speculators for bidding up the cost of fuel!

good times

As Merle Haggard says "Are the Good Times really over for good?

I think so. We will never see in the next 10 years what we saw just 12 months ago.

No matter what we do to try and correct this problem, there is no fast solution.

I had a diesel Dodge truck and used about $125.00 worth of fuel per month just prior to Hurricane Rita, I just sold it because my last monthly fuel bill was near $350.00. I bought a gas powered truck and it is no better because I don't get the mileage I got from the diesel engine.( Lower gas prices than the diesel but lower mileage on the gas. I thought diesel was a by-product of gasoline) Last night on Glenn Beck the scroll on the bottom of the screen said oil had incresed by 5% in the last month. I feel extremely concerned about what this is doing to our country. The truckers that own their trucks can not survive. The larger companies will only pass it on to the retailers and they will pass it on to us. Which means we will not survive.Texas is trying to take hundreds of thousands of acres from private land owners so Spain can build the Texas Corridor (Which I might add is to be a toll road and the funds given to Spain) thru our state for Mexico to transport goods to Canada. Now why would we build a fence along the Rio Grande and then open the borders up to truckers from other Countries. Rick Perry is a very intelligent man?????? You see I can not even get on the net without being negative!!!! At least that is what a lot of people will say. You are sooooo negative.Can anyone show me something about this whole thing that is positive.

No More Net For Trucking Industry

That's what is happening now. I operate a small towing/roadside service in Atlanta, Ga and I have raised rates and added a small surcharge but to operate seven trucks my fuel bill used to be 5% to 8% of my revenue...It is now at 15% with no end in site. That percentage gap pays for maintenance which now comes out of reserves. Why is our own Government trying to destroy the transportation industry? Is it so trucks from Mexico can enter and do the work?

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About This Blog

Marianne Lavelle, senior writer, seeks out the path to an energy future that doesn’t wreck the planet or put you in the poorhouse.

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