LiberalTrucker contributed this post for Masslogics Trucking News. Just compared to last year, the diesel prices in the country have gone up 60% and there is no indication that prices will be dropping. This has led the trucking industry and many other transport services to change their business practices- otherwise many will have to shut down.
Diesel prices average close to $3.90 in the country and are soon going to break the $4 mark. So far many of the truckers have been bearing the cost of this increased diesel price. How long they can sustain it remains a mystery. Estimates from the American Trucking Association indicate that truck drivers will spend an estimated $135 billion on fuel in 2008, significantly higher than they did in 2007.
For those who have always been reliant on fuel for their business, many are changing the entire industry by their way of thinking. Gone are the days when the cost of fuel was not an issue. Today, many CEOs are now thinking about alternative fuel, fuel saving measures and ways to store fuel.
Many have started reducing speeds on the roads to conserve fuel and most will not drive on a half empty truck. Most load on to the maximum and even delay their trips
Many truckers are turning to the internet to find the cheapest gas. Almost all independent truckers are on a tight budget. The entire trucking industry is in a major crises. There are not many alternatives for many truckers. Reducing fuel costs means the difference between success and bankruptcy.
Trucking companies going bankrupt is at an all time high. There were an estimated 42,000 trucks out of business just last year with close to a 1,000 companies closing their doors.
Unfortunately this could be just the tip of the iceberg. Forecasters predict that we are in for more difficulties.
