Trucking News

Doug Pelmear is an engineer from Ohio with a valuable secret under the hood of his 1987 Ford Mustang. This 400 horsepower muscle car does 0-60 in under 3 seconds and a top speed of about 180 MPH. Even more amazing, the car gets 110 MPG.

The public hasn’t been allowed to peek under the hood just yet. Pelmear is waiting for a few patents to come in before releasing details of this green engineering miracle.

There has been independent verification according to OzarksFirst. The claims have been verified by Rocket Ventures in Toledo, Ohio.

Pelmear is entering his car in the Progressive Automotive X Prize competition. He could win the $10 million, but the real potential is in using the technology in the large cars and SUV’s that Americans crave. Soon we all may be thanking Pelmear for his remarkable engineering feat.

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 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.

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.

LiberalTrucker contributed this post for Masslogics Trucking News.  For most of the past 2 decades, the price of diesel fuel has always been lower than gasoline. However, this pricing difference has evened out in the last 2 years. Truckers are now getting to feel the same pain at the pump as car owners.

Diesel prices have swelled in recent weeks to all time high levels, putting a strain on truck drivers, airline industry and most of the economy, at a time when there is already a recession in progress.

Why the diesel fuel has become so expensive has been attributed to many causes such as supply disruption caused by federally-mandated decrease in the allowable amount of sulfur in diesel fuel. Others point to the growing global demand for diesel fuel. Part of the most recent price hikes have been traced to the Katrina Hurricane with the disruption of the refineries, oil wells and fuel shipments.

Further the past few winters have been cold, demanding and long, thus accounting for an increase in the demand for heating oil, with further raises in the competition for crude, which raises the prices. Other factors include the global demand for diesel. In some European countries, more than half the cars have diesel engines.

At the same time, cooperative shipments of regular gasoline from other “friendly” countries that were so helpful following the hurricanes never showed up with the diesel fuel.

Still another important factor has been the recent manufacture of a new, cleaner diesel fuel. The goal of “clean diesel” is to eliminate sulfur from diesel fuel. Lower-sulfur fuel is claimed to be cleaner and have no health hazards.

In October 2007, the national average for a gallon of diesel fuel rose to a record $3.10. Since then there has been a steady increase in the price and there is hope that the summer may bring a slight drop in the prices. The EIA does say that there will be light at the end of tunnel. The big question is when?