Fuel Prices and Trucking; A Reality Check On What Drives America

It appears we are having a terrible situation with themuch fuel, as trucking companies and drivers are only
diesel fuel prices in the US. It is affecting everything,buying enough to make it out of the state where
since everything we buy is shipped by train or truckthey can fill up at lower prices. In NV and AZ where
and most of the times both. We have artificial fuelfuel does not get taxed as much and wholesale
price manipulation and large trucking companiesprices are lower but prices only 5 cents less. Diesel
operating at less than 3% margins. We have seenfuel Sales and distributors are making insanely high
100s of medium size trucking companies filemargins, or at least a lot more than normal. Noticed
bankruptcy and 1000s of small companies file as wellthat where most of the people live, such as near
between 1999 and 2002 and we appear to bewater (great lakes and Ocean) that is where the fuel
headed for another round here in 2005. This isis more expensive? This is causing consumers to be
causing problems in the used truck sales market. Wedamaged in that the cost of everything goes up.
have noticed this affect with used trucks on thisIn 2000 trucking companies all started raising prices
market it is affecting new truck sales right after5%. And then another increase eight to ten months
several major mergers. There have been lay offs atago. We have not seen a fair price for fuel in UT,
all large trucking company manufacturers. EmployeesMT, WY, CO either yet we should have. The railroad
from Volvo, Peterbuilt, Daimler Chrysler who haveindustry is fairing only a little better able to import
been laid off, some have hired back a few due totheir own fuel cars to the locations they need to fill
the emissions rules and need for cleaner trucks andat and buy at a bulk price where it is cheaper. After
also trucks which are more efficient. The efficiencyhuge consolidations and soon to be more in the rail
saved at these fuel prices will nearly pay theindustry with Canadian Rail Companies. We see
additional costs of the payments and truckproblems here too. Especially recently when the
manufacturers intend to capitalize on that fact.Railroads were shut down due to freezing of
Fuel prices are a disaster in CA and there is aswitchers and safety devices needed for operations.
mandatory diesel engine emissions statue for vehiclesWe think we maybe able to realize a great market in
over 14,500 GVW. The EPA laws are also causingthese venues in the future.
underground tanks to be continually dug upWhen trucks and trains stop, America Stops too.
everywhere to protect the ground water, all theseMost grocery stores and Major Retailers operate on
things combined are causing huge issues on top ofa real time basis, meaning that Inventories of the
the already high diesel prices and insane governmentpast and big warehouses are not needed to the
add on taxes. Oregon State has now decided tosame degree as before. This is what the new
induce as well; any truck with no OR plates will beeconomy is bringing. It means lower prices to
charged extra tax for fuel. Oregon is trying to keepconsumers due to inventories being less and less cost
road tax money due to a recent law passing to keepneeded to store goods for any amount of time. It
registration fees low. Consumers believed they wouldalso means foreign trade zones and areas where
save money by low registration, now it is simplythere are no inventory taxes such as NV will not be
added to diesel fuel, which affects everything youas significant as before, but still needed to compete
buy and leads us into recession. This is a big tax on allin the fast paced World. Those foreign trade zones,
diesel sales of trucks. Washington State; same thing;which were decreed after many of the BRAC military
some highest prices in the Nation are now in thebase closures have a one ups man ship on those
west. Even ID, AZ and NV are raising prices butother areas with warehousing incentives. Places such
keeping them just under WA, OR and CA. Manyas Columbus OH and Mathers AFB in Sacramento CA.
truck stops in NV, and AZ even though just over theOf course there are over 400 of these foreign trade
CA border are keeping inline with just under a nickelzones in the US now and more than 100 more
per gallon less. Big saving for trucks with 200 gallonswaiting with permits. Some of these old military
of fuel capacity. So now the truck stops in NV, AZbases are now superfund sites such as Dobbins AFB
are crowded. And the ones in NM, TX, KS, OK insaneout side of Atlanta. As America matures, we have
where fuel prices are a good 10 to 20 cents perlearned allot from our past and we should be taking
each gallon cheaper. Truck stops in San Bernardino,these learned experiences with us as we deal with
LAs main distribution hub are busy, but are not sellingany potential threat of economic melt down.