Which is not exactly true. The price of fuel has always been going up some time faster than others, truck insurance has always gone up, the price of tires and the price of trucks has always gone up. But the price to ship something by truck has gone up also so that trucking companies and owner operators could keep covering their expenses. Trucking companies and truck owners go out of business all of the time even in the good years for a myriad of reasons.
Every time fuel has gone up, the revenue to the truck has gone up, it usually lags behind several weeks and that’s where some of the companies that are only surviving by a thread and have no reserve start having problems. But revenue usually goes up, until now.
Several years ago when the economy was growing, railroads had too much freight they couldn’t handle it all. Trucking got a lot of the railroads overflow. Railroads not only had a tough time handling their freight volume but because they hadn’t invested in equipment or infrastructure, both were falling apart and not able to handle the workload. The railroads have had time to fix that mistake. They are no longer bursting with overflow freight.
The economy has slowed down enough so the rails can handle their freight and there are now too many trucks trying to haul too little freight. Thanks to supply and demand, shippers can get the lowest bid possible from trucks trying to survive. Some will even cut their own throats by hauling something that barely makes them a profit, trying to keep their trucks moving. That’s where trucking companies have problems with the fuel prices. No reserve to begin with and hauling freight at or below cost.
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my hat goes out to those who stay in the game. i’m 40 years old a driver for 21 years it took a stroke for me to stop driving. the way things are now i dont think i want to drive againg.
I bet trucks have a big problem with gas thieves. Check out the locking gas cap website and search for your make and model. 200 gallons at over $4 a gallon, that’s a boat-load of money.
The writer of the article above is full of crap.My husband and I own a 50 truck fleet.Trucking has always been a high expense, low profit business.Recent mandates for engine efficiency regarding emissions has driven the cost per unit up 20/30%.The rapid increase in the cost of fuel has created a spiral of rate increases followed by fuel increases followed by surcharge formulas etc.The ability to stay abreast of the fuel price increase is impossible.Moving freight by rail is fine except it is hard to get a rail car backed up to the dock at a distribution center.Come on stupid!Add to fuel the fact that brokers are not required to disclose the amount of fuel surcharge included in the cost of a load.Thus, the broker is free to keep as much of the FSC as they can in brokering to the carrier.Trucking is highly competetive and brokers and shippers know it.They manipulate rates by an antiquated “back haul” theory.There is no such thing as a “backhaul”.Every load should be treated as the amount of money needed to move freight and cover the cost to do so by the carrier with a modest profit.America is going to miss us when we are gone.
Why is the article full of crap if you’re saying the same thing?
Rail has spent millions in rebuilding their infrastructure and investing in their equipment. It’s not going to be like the last boom in the economy when trucking took rail’s overflow.
And all it takes ia truck from from the rail yard to the store dock instead of a dedicacted truck going cross country. And you say you’re in transportation?
So, you’re saying if the cost of fuel was lower, everything would be great? And you’re calling me a moron? If the cost of fuel was lower, the rates drop with it. Right now, fuel is only part of the problem. If there was enough freight we could get the rates, but there are too many trucks for not-enough freight.
During the last several years you had to be a complete moron NOT to make money trucking.
The fewer trucks on the road gives the carriers the advantage.
Why don’t you do the rest of us a favor and take your 50 trucks off the road.
I don’t know much on what it cost companies, but I do know that my friend you is a truck driver has to drive 50 miles one way in his own vehicle to get to his truck. It would be nice if he could find something closer but the Michigan economy is not exactly the best right now.
I completely agree with Molly in that the guy who posted the message above is full of CRAP! There needs to be a clear understanding of truck operations and freight logistics to be able to at least know what it takes to operate a tractor-trailer. Owning one and driving gives you the knowledge needed to clearly opinionate on the current fuel crisis and emissions limits placed on trucking companies today. YES, crisis. There is NO effort being made to help trucking companies deal with rising fuel costs. No tax breaks nor credits at the pump. The average trucker/ trucking company needs to pay around $550.00 for every 100 miles traveled. And NO, the rates do not reflect what is going on nationally. There are shysty brokers out there. But being one myself, I can tell you that I’d rather turn down a load than try and squeeze a trucking company. Systers are the reason why there are so many trucking companies going out of business. And they are. Last month JEVIC closed it’s doors and made 1,500 drivers unemployeed. So if you feel that fuel is a small part of that, then compensate the fuel out fo your own pocket and start paying 50% more for your clothes, groceries, and everything else you buy on a daily basis. Then tell us, the poor schmucks trying to make a living delivering everything you need and maiking your life convinient, that fuel is a small part of the problem. Ignorance like yours is the true problem.
BTW: Trucking’s comments seem to fuel the government’s move to empowrer the rail industry that buy the way is owned by forign investments. Look up CXS and tell me how owns the biggest rail infrastructure in the US and why they don’t want to answer to congress. You say that Molly would do us a favor and take her trucks off the road. Go live in a European counrty where fuel is $6.00 a gallona and then compare the average income to that. Fuel is a crisis and a MAJOR reason why companies close because wages are not increaseing at the same rate as fuel. But you continue to disregard the fact that trucks moving cross counrty give you the ability as a consumer to go out and buy the lastest computer, TV, clothing and the freshest produce. The rail road would take weeks to get a shipment from New York to LA. But we are the morons. Take a hard look at yourself and ask yourself if you are American and have become depentant on these conviniences. Sorry, but you are still full of crap and a moron.
I am upset and I no longer drive. I drove for 25 years and I know that you can’t get all the truckers to stick together on any level. I was in trucking in the 70’s. I remember the snippers on the Grapevine and the nails spreaded on the freeways, because the truckers would not shut down. Untill the truckers stick together there voice will not be heard….forget the company drivers they are afraid of loosing there jobs, atleast that is one excuse and they have more… But it is time to be heard, the fuel prices are too HIGH and everyone is hurting at the grocery store and at the fuel pump just because the oil companies are out of control and our government is backing them up. They are getting kick backs and they do not care about the people, just the almighty dollar. If the people that we vote for had a pay check like ours they would care then ,but the rich get richer and hard of hearing. What they don’t understand is the trucker is the backbone of this nation , without us there is no gas at the pump,no food at the store,no clothes to buy. The train can not deliver to the store or your local gas station. The people don’t know how it gets there just that it is. That needs to change. So I think a strike is what is needed for at least 7 days and shut down all that won’t ,but that is the only way our voice can be heard. I feel the government don’t care and will not quit making excuses for the high prices. And for those people that only see the trucker as in the way on the road lets see what you would do without us. The trucker has the power ,but will they use it? LETS BE HEARD!
If everyone is fed up with it, why not have the CARS shutdown for a day or a week and see how much gas the oil companies sell.
That makes just as much sense and will happen just as quick.
The problem i have is brokers wanting 10 to 15% who i lease to wants 15% 10% for trailer rental along with insurance and maintaining my truck there is nothing left what is the worst of it is i do all the work myself and my truck is payed for if i can’t make money who can
Im sure of one thing everyone commenting can appreciate is the price of gas as it is today. Although this is temporary I’m really enjoying paying the lower price of 2.19 a gallon for diesel here in tucson.
