Trucking News

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.   “Bigger is Better” has always been an American motto. And now many trucking companies are asking Washington to allow them to have bigger trucks.

A coalition of truck drivers wants to ensure that a Bill can be reauthorized by Congress to allow for bigger trucks on the road at the end of next year. For the past several years, big trucks were banned from many of the highways in the country. Now, the truckers want to get permission from Congress to be able to drive their large vehicles in several states including Maine, Minnesota, Wisconsin, South Carolina, Georgia and possibly Texas.

These States have been selected partly because of their economic benefits of having a seaport location or border crossing with either Canada or Mexico.

Owner operators believe that American drivers are at a major disadvantage compared to their Canadian and Mexican colleagues who can drive heavier trucks on six axles. Having access to the big trucks at the cross Border States like Minnesota, Wisconsin, Maine, Texas and the Canadian border will bring the truckers on parity when it comes to the loads that they can carry over the border.

The truckers also claim that with the larger vehicles they will be able to reduce the size of their fleets which in turn could lead to lower overhead costs, less impact on the environment and decreased damage to the highways.

However, this does not sit well with many other Unions, esp. the Teamsters. Jim Hoffa the president of Teamsters Union says that having bigger trucks on the road is more dangerous and will completely ruin our already poor road infrastructure. He thinks the idea borders on insanity.

Not to be outdone, Joan Claybrook who is President of Parents Against Tired Truckers has urged Congress to simply ignore the demands of the certain truckers. She thinks that are clueless.

More than likely this demand by the truckers is going to fail, but one can never know.

One should note is that many studies have shown that larger trucks are more likely to have fatal accidents compare to their smaller counterparts. The DOT claims that the currently designed large trucks can be expected to experience a fatal crash of 11% higher than single trailer combinations- perhaps Congress should have this data before agreeing to any demands by the truckers.

OTRJoe Response to “Ban Independent Truck Drivers…” The Port of LA is a complex issue. What he’s not saying is the port’s plan is instituting laws regulating the age of truck used in the port. I believe no truck older than 2005 will be allowed unless it is retrofitted with special emmissions equipment that brings the truck up to 2005 emissions standards. Plus, they are initiating a port hauler fee of around $5000 per truck. It’s obvious from this plan that only the large carriers with cash reserves for newer trucks and the new fee will remain. Once that happens, these larger carriers will have higher haul rates to move the freight, thus raising the transportation costs which will filter down to raising the costs of goods in the stores. Largely what comes into the ports is fisnished goods from Asian manufacturers, so it will definitely impact the costs of stuff at Wal-Mart and Target.

That being said, there is a HUGE traffic/pollution issue at the LA port. I’m not sure if this is the right solution, but they definitely need to do something to address the issues at hand. Of course, it’s highly possible that the larger carriers that will benefit from this new plan are supporting the gov’t departments that are bringing it about. Isn’t that the American way?

LiberalTrucker contributed this post for Masslogics Trucking News.

America has been a world leader in providing opportunities for everyone. In the last 20 years, the deregulated trucking industry has contributed to a fair share of problems both off and on the roads. There is worse traffic, more pollution, pitiful working conditions and below par safety standards on the roads. However, the California port authority is now taking control of this situation. It has banned all independent truck drivers from the Port of LA. This is the first step to regain control of the roads, remove traffic congestion and lessen environmental pollution.

Reports have indicated that pollution from trucks in the Post of Oakland have been responsible for causing asthmatic attacks in 1/5 children in that area. Since many of these independent truckers make minimum wages they are unable to afford upgrading of their trucks and maintain safety. These independent truckers are also not part of any union and thus have no bargaining power in terms of wages, rights or benefits

The ongoing turmoil over the trucks on LA roads finally led the port authority of LA to ban all independent truckers. Numerous organizations have supported the port authority in their bid to develop a clean and safe port. The port authority says they are not discriminating against independent truckers, but they in fact claim that their actions will hopefully require trucking companies to use port based trucks driven by employee drivers.

A plan to completely ban independent truck drivers from the Port of Los Angeles by the end of 2013 was approved Thursday night.

This will hopefully led to an improvement in wages, limit pollution, lead to reliable short haul trucking system and assign due to labor law rights to all drivers.

Port officials have said that the plan will hold trucking companies accountable for maintaining big rigs, while also employing properly credentialed drivers. This does not sit well with the trucking companies who claim that this will lead to higher salaries, increased cost of labor and in the end, additional cost to the average consumer.