Trucking News

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.

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.

Oakland, CA. At the Union Pacific Rail Terminal truckers have had enough. Trucks are pulling over in solidarity to protest the rising fuel costs they must shoulder. Most of the truck drivers are only being compensated for 12% of their fuel costs. “We want to work.” Said many of the owner-operator drivers, but they can’t afford to when their fuel costs exceed the fees companies pay them to haul the loads.

Four years ago companies negotiated to pay 5% of the fuel costs above $2.00 per gallon. Drivers protesting say they have not been compensated.

Protesters yell and jeer at trucks passing by. Many fellow truck drivers abruptly stop their rigs and join them. Truckers in surrounding locations are also pulling over to support the cause.

Is this the first sign of things to come? Most economists are in agreement: oil prices are on a permanent upward trajectory. Cities are dependent on food and other goods arriving daily, most cities cannot continue normal activity for more than 72 hours without fresh inventory arriving. The protesting truck drivers at Union Pacific Rail Terminal are addressing this increasingly dangerous crisis now, we should all pay attention. Truck drivers cannot shoulder the impossible burden of endlessly rising fuel costs.

Truckers across the country have had it with the high prices of diesel fuel.  Truck drivers are hurting.  Hurting and fighting.  Many truckers refuse to move their loads in protest, due to the rising costs of doing business.

Something has to be done, to relieve the strain on the independent truck driver. 

Even though only a small portion of truckers participated in the protest, other drivers stated that if a more formal and organized strike were planned more truckers would participate.