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.

Volvo launches the first hybrid garbage truck in the world.  With oil prices still creeping up and the green energy movement growing the world is ready to take another step towards commercialization of new technology for heavy vehicles.

The idea of commercial Hybrid trucks was first conceived in 2006.  Two hybrid garbage trucks will start road operations test on a regular daily basis in Sweden.  This is the final stage in evolution before the hybrid trucks go into production. 

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.

Ice Road Trucks is coming back June 8th. I’m a big fan of the show and even use pictures from the show as my screensaver.

You can download a copy for yourself here: Ice Truckers Screensaver

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.