2008 May | AskTheTrucker

Truck Drivers Security, High Fuel Prices, and the Consumer

Posted by Allen Smith in Fuel Costs, Truck Driving Jobs on May 7th, 2008

According to some of the e-mails we receive, we have noticed many of you are a bit hesitant in regards to choosing truck driving as a career. I have written much about “making sure that truck driving is for you,” which was in regards to a lifestyle that is only for certain people and personality types, nothing to do with fuel prices.

If you are concerned about the fuel prices and job security, then you must know:

There will always be trucking and trucking companies that need truck drivers. Period.

This country depends on trucks to deliver goods more than any other means of transportation. It is the trucking companies and owner operators who are taking the blunt end of the stick, not the company drivers, (as far as fuel prices go anyway). The consumer also takes the beating because fuel surcharges are passed on to the shipper…which means higher prices to the consumer. ( someone has to pay, right?) Drivers still deal with other aspects of company nonsence.

Owner Operators are the ones who are having the most difficult time with high cost of fuel. The only way they can come out of this with any profit is to also increase their surcharge to the shipper, same as the trucking companies. Problem is, this is easier said then done.

One trucking company ( and also others) is attempting to alleviate the high fuel cost for owner operators and fleet owners by paying them a fuel surcharge for both empty and loaded miles. If you think about it, it’s for the benefit of the companies as well as the owner operators and fleet owners. After all, when a trucking company contracts almost 3,000 owner operators and fleet owners across the country, they had better do something to compensate them……….or they won’t have their loads covered.

In the long run, as long as fuel surcharges cover the increased fuel prices, trucking should ( theoretically) go on as usual. The effects of the increased fuel prices, unfortunately, will be felt by the consumer……..in other words……all of us.

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: fuel prices, owner operator, trucking, trucking companies

fuel prices, owner operator, trucking, trucking companies

2 Comments

Ethanol to the Rescue

Posted by Allen Smith in Fuel Costs, otr trucking on May 5th, 2008

Approximately twenty years ago we attempted to introduce ethanol into the market with much excitement. It failed. Now, with the rising cost of crude oil which effects the price of gasoline and diesel, we once again are bringing back the miracle cure, ethanol. My prediction? It will fail again. Ethanol from wood was first introduced in Germany back in 1898 . . . it did not last. We tried corn Ethanol in 1984 and 1990 . . . it did not last. Here we are again in 2008 and it will fail again eventually.

Vehicles are built to run on the premise of the combustible process, not from corn. Eventually, every new vehicle built would have to be “corrected” in order to accept this new form of energy. Older model vehicles would have to be altered to run on the new fuel source. So everybody in the United States with an older model vehicle would have to pay for this alteration? Yea, that is really going to happen.

We are already seeing the decline in wheat and other farming products as farmers switch over to growing corn, and who can blame them? Thus, the prices of groceries are increasing, actually offsetting any savings we may see with gasoline. As well as when people begin to realize they are losing 2-3 MPG by using ethanol, will they continue to purchase it? Also, what are the benefits of ethanol for the diesel industry?

The cost of diesel continues to rise simply due to the fact of supply and demand. More and more countries are using diesel. E-Diesel is out there already, but every diesel driven vehicle would have to have a converter installed on it before using the ethanol blended diesel. Would this assist our truck drivers in experiencing savings in their profession? As the price of food continues to rise will we actually see any savings at the pump? I don’t think so.

The high cost of fuel is here to stay due to two main reasons . . . first, supply and demand. We cannot keep up with the demand for petroleum products, especially diesel. And secondly, and actually most importantly . . . our country will not allow any more drilling or the building of refineries and plants. As long as we continue down this same road, the price of fuel will only go higher and the hardest hits will be our truck drivers.

So for now, we have reinstalled the “blinders” and fallen back to the ethanol miracle again. Ethanol will save us. Well, we’ll see . . .

: cdl training, cdl training schools, fuel prices, otr trucking, owner operator, truck driver training, truck driving careers