Trucking News

Oil prices are through the roof and the planet is getting hotter. We are facing an energy crisis and many truckers, and other professional drivers, have been forced to stay parked until the prices come down.

With no relief in sight a lot of “green” advocates are jumping on the biodiesel bandwagon. After all it’s a cheaper, cleaner burning fuel and most diesel engines need little or no modifications to start using it*. However, recent studies suggest that biodiesel might not be the “green” solution many are hoping for.

Biodiesel is heralded as an alternative, cleaner burning cousin to diesel. It’s made through the processing of various forms of vegetable oil. It is then blended with conventional diesel or used alone. Biodiesel can be manufactured using waste vegetable oils, like those thrown out by fast-food restaurants. However, a rising demand has lead to the cultivation of farmland for the sole purpose of growing crops for the manufacture of biodiesel fuel.

Approved and toted as a “clean air” fuel, even a 20% biodiesel mix creates a significant reduction in CO2 emissions. The way biodiesel burns is not a point of concern. The way that it is currently being produced, may raise an environmentalist eyebrow or two.

The well respected Science magazine released two reports this year calling attention to the destruction of essential rain forest and other vital natural habitats and eco-systems due to the increased demand for palm, soy and other vegetable oils for bio-diesel production. (Report 1) (Report 2)

These studies warn that biodiesel may not be as green as it seems here’s why:

More Green House Gases
According to the studies the process of clearing grasslands, rain forests, and other land for farming actually releases more greenhouse gases into the atmosphere than would be saved by the fuel that the land produces. Not to mention the natural CO2 absorption that is stopped when this dense growth is destroyed. Considering farm land absorbs less CO2 and produces less oxygen than the rain forest or other growth it replaces, the farming and production of oils for bio-fuel arguably does more to harm the environment than to help it.

Of course this “clearing” of farmland for bio-fuels also lends to other problems:

Killing Endangered Species
In Borneo, by 2020 most of the rain forest will be gone. It is home to thousands of unique species of insect and animals, including the endangered Sumatra and Borneo Orangutan, the Sumatra Tiger, Asian Elephant and Sumatran Rhinoceros. In fact the conditions are so dire in Indonesia and Borneo it is estimated that if we continue at the current rate of destruction, the Orangutan will be extinct in 10 years. (www.redape.org)

Creating Dead Zones In the Gulf of Mexico
A “Dead Zone” is an oxygen starved patch in the ocean. These “Dead Zones” occur all around the world and are caused by decomposing algae which depletes the oxygen and suffocates marine life. According to the June edition of National Geographic, the main cause of the rise in “Dead Zones” in the Gulf of Mexico is runoff of fertilizer that comes down the Mississippi. With farmers growing more corn for bio-fuels, more fertilizer is being used resulting in the death of marine life.

The World Food Crisis
The world is already experiencing a global food shortage. The price of wheat has doubled in the last year, and palm, soy, and other food prices are rising across the board. If more crops are grown for fuel less will be grown for food. Tearing down the rain forest for farmland is bad enough, millions of starving people is even worse.

By the end of this year, Europe wants all diesel fuel to contain 5% biodiesel. By 2012 20% of all diesel fuel must be biodiesel. The only way the world’s farmers can keep up with rising demands is to clear more land for farming.

The allure of cheaper, cleaner burning fuels can cause many uninformed “greenies” to applaud the advantages of biodiesel fuel; however there is one buzzword that must be remembered in any conversation about new energy: sustainability.

The facts are clear. We cannot continue to abuse the ecosystem to support our accustomed lifestyle. Fortunately, world leadership is starting to take notice, and people are finally starting to look for new sustainable energy answers. Unfortunately, however, bio-diesel may not be the perfect solution everyone was hoping for.

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(*Note: bio-diesel is a solvent and will eat your rubber fuel lines and seals, older vehicles are more susceptible to this possibility. Make sure your fuel lines are non-rubber if you plan to use biodiesel.)

Thousands of years from now, when human kind looks back on the “ancient Americans,” the way we look back on The Romans, one thing is certain: our delivery and transit systems will be heralded as one of our greatest accomplishments.

As gas prices soar, and the cost of food and consumer items is one the rise, one starts to wonder: what if the cost of high oil causes a strike or temporary shut down of our trucking systems?

Sound far fetched?

Such a strike has already happened once this year, on April 1st, when 1,000 or more independent truckers decided to shut down for the day.

Diesel fuel was only 4 dollars a gallon at the time of the strike.

Diesel gas has risen over 300% in 6 years. In 2002 The price of diesel was $1.25 a gallon, now the national average is almost 5 dollars, costing truckers $1200 or more to fill their tanks. With most analysts saying that there is no end in sight, come this time next year we could be looking at $7 or $8 dollars a gallon.

Coupled with the cost of insurance $6000-8000. It’s becoming nearly impossible for the small independent trucker to stay on the road.

The Teamsters union, who represents a number of workers, including truckers, posted the following on their website, June 13th:

“Oil prices are hitting U.S. airlines hard, forcing layoffs, service cuts and price increases. One major reason oil prices are breaking records is rampant speculation on the energy markets.

The Teamsters strongly support legislation on Capitol Hill to bring down fuel prices by curbing speculation.

General President Jim Hoffa sent a letter to House and Senate leaders urging reform of the energy commodities market. Also signing the letter were consumer, business and farming groups.”

Click here for a copy of the letter they sent to congress.

America’s trucking network is the lifeblood on which this great nation thrives, before the internet or the tech boom, before cable television or any television for that matter, we had trucks. Our unparalleled delivery system, built over the last 100 years, is what allows this country the quality of life we are accustomed to.

Look around you. Every piece of everything in your office, living room, or anything else man-made has been trucked from somewhere.

Ben Evans is the president of Mass Logics, a company that provides software to the trucking industry. Specifically, they make logistics software. In a recent interview, he offered a bleak but hopeful outlook on the current state of the industry.

How are the current gas prices affecting the industry?

“The impact is two-fold. First and foremost, it costs more to operate. Fuel used to be 20% of the operating cost of a truck, now it’s about 60%.

In most cases the price of transporting the goods has barely increased enough to cover this additional fuel cost. Even businesses that are able to increase pricing to keep up are still losing profit margin, decreasing the value of their businesses. Secondly, consumer confidence is low (upcoming election, housing crunch, high gas prices) causing fewer goods to be purchased by consumers.

Fewer goods sold directly translates into fewer loads for the transportation industry. Fewer loads either drives transportation prices down or puts smaller companies out of business.”

What would happen if truckers were to strike?
Is that a possibility?

“A brief one-day strike has already occurred. The impact of which was probably not all that evident. A real strike would have to last more than a day to have a real impact, but the likelihood of that is low. The industry is not united enough to be effective with a strike. The more effective strategy is to simply stop operating trucks at or below cost. As long as companies, small or large, continue to operate trucks for prices below profitability, the industry will suffer.”

Who is hit the hardest by the rising gas prices?
“Independent truckers and small trucking companies who have difficulty raising prices without fear of losing their customers. Every successful business must be able to react to market forces and adjust prices accordingly. However, in times like this when the work load is low and truck capacity is high, raising prices is not an easy option.”

Is there any relief in sight? What is the industry doing to deal with 6 bucks a gallon diesel fuel?

“The transportation industry will always have a bright future, even at $6 or $7 per gallon for diesel fuel. This is one of the few industries that cannot be exported overseas or replaced by technology. As long as products are manufactured and sold in this country, they must be moved from place to place. However there will be a period where work is low, and pricing is unstable, which will cause the industry to shrink some. Once the fuel price stabilizes and consumer confidence returns, the industry will bounce back and grow again.”

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But we must ask ourselves, “How long will it take for the market to bounce back?”

What is going to happen in the mean time? Products are skyrocketing while consumer confidence dwindles. Just as average people are cutting into their budget to pay for the high price of gasoline, truckers are having to cut into their profits.

If prices to continue to rise, is there a threat of truckers going on strike or even worse out of business?

It is obvious that in order to continue to receive the goods we depend on, truckers must not be left holding the bill.

While oil companies are defending record profits in congress, the “little guy,” the independent trucker. is getting run off the road. A supply shortage due to less transportation, coupled with an increase, or even steady demand, could mean a disaster not only for the trucking industry, but for the everyday American as well.

LiberalTrucker contributed this post for Masslogics Trucking News. The trucking industry is taking a beating not only from high prices of diesel but also from the environmentalists and health fanatics.

Trucks have been the backbone of the American transport industry. From the very beginning, trucks have played an important role in the transport of goods across the country. There are 1000’s of trucks on almost every highway in the nation. While essential and ubiquitous, they have also earned a less desireable reputation. They crowd the roads, congest the highways, are involved in accidents, and pollute the environment.

Trucks burn diesel fuel causing emission of dangerous particles which have health risks. In many parts if the country, these sulfur and nitrogen particles have been shown to worsen asthmatic attacks.

Before the Clean Air Act of 1970, the USA had no national emissions standards for either cars or trucks. With growing awareness of pollution from fuels, strict regulations, better engine technology, and reformulated gasoline were developed. These advances have significantly decreased the amount of pollution from vehicles over the last 3 decades. The EPA estimates that today’s automobile emits 75 – 90% less pollution for each mile driven than cars built before 1970.

The same goes for the newer heavy-duty trucks which have become more environmentally friendly. Today’s large trucks emit nearly 70% less nitrogen oxide and other particles compared to vehicles built in the 1980s.

However, there are still a fair number of older trucks still running around and the ARB has now taken significant steps to clean up the diesel churning trucks. Numerous regulations have been proposed to make it mandatory for trucks to clean up through retrofits or upgrading to newer vehicles

Hopefully, approving and executing regulations that will reduce diesel pollution from trucks will safeguard public health, meet federal air quality standards, and reduce cancer risks for everyone.

I know this isn’t a truck but it’s just too gnarly to not mention.

Art Center College of Design student, Jake Loniak designed a seemingly dangerous and uber cool motorcycle.  If you’re an adrenaline junky then this is totally the bike for you.

The Yamaha branded Deus Ex Machina is a wearable motorcyle that you wear as an exo-skeleton with the helmet being attached pneumatically.  The motorcycle goes from 0-60mph in 3 seconds with a max speed of 75mph. 

To top it all off the bike uses green energy.  A full electric charge runs the bike for 1 hour and the recharge time is only 15 minutes!

LiberalTrucker contributed this post for Masslogics Trucking News. The recent housing crises, floods, tornadoes and the war in Iraq have not really helped the American economy. Billions of dollars have already spent on the war in Iraq and there is no end in sight. Prices of food, water, electricity and gas have all gone up. Almost every State in the country is affected by this recession and there is no solution in sight. In the US many people think it is just the housing industry that has been affected but the trucking industry has taken just as big a hit. And this is just the first signs of trouble.

The price of diesel has gone up many folds in the past few years. Almost every trucker can confirm that there is a major slowdown in business and this has affected entire communities in the US.

Current estimates from the American Trucking Industry indicate that nearly 1000 small trucking firms go out of business every time diesel fuel prices push up more than a dime.

Profits are so thin that most small time truckers have very little margin to sustain the losses. This is partly because of the millions of truck drivers available and the administrative costs. So any small increase in the price of fuel makes it difficult for the small carriers to exist. Transmitting the higher costs of fuel to customers does not normally work as the customers usually go somewhere else, see Don’t Take that Load Part II

The larger trucking companies have some leeway and are able to maintain some profits by passing the costs to shippers who eventually pass the high costs to the average consumer. However, this has not also worked since most consumers have really cut down on spending.

The future of the trucking industry is not clear and appears bleak. Unless the government eases regulations and allows more refineries, there are many more businesses that will join the truckers.