TheTrucker.com published an Associated Press article by Sandy Shore recently that expresses concerns that truck drivers are going to get hit with higher fuel prices due to oil prices increasing. The New York Mercantile Exchange had ended trading to $81.58 this week, a slight rise in cost. Barrels of oil haven’t been above $80 since the beginning of August.
In the article, “Amid the recession, some trucking companies are out of business, those that are left are ‘doing pretty well’”, Bubba Comer, owner of CFC Transportation expressed the following:
“When things are going good, the truckers are the first ones to feel good,” said Comer. “When things re going bad, they’re the first ones to feel it.”
Now, Comer has about 12 trucks; currently, their only use is for his own product. In the past, Comer has had as many as 60 trucks on the road, but when gas prices went up and rates went down, he parked his fleet.
“I took them off the road when the fuel was $4.68 a gallon, and your freight was declining,” Comer said, noting when fuel costs go up, shippers shop around for truckers, and the rates tend to decease… With diesel fuel at about $2.80 a gallon, you’re probably averaging $1.25 to $1.40 per mile in operating costs, including fuel costs, driver payment, maintenance and insurance. It doesn’t leave very much to pay bills.”
The good news is that economic analysts feel that the rise in fuel costs won’t last long because those who need gas and oil are shrinking. Most analysts feel that gas prices will go down until the first of the year, 2011. With less need comes a lower cost.
Trucking companies must be relieved with the knowledge that their costs will lower for their last quarter of the year. With the pressures of the economic downturn and cost of drivers going up due to new regulations in driver safety, at least here is some good news for the industry.
http://www.thetrucker.com/News/Stories/2010/10/1/Pumppriceslikelyheadedupwardasresultofoilrally.aspx
http://www.cdispatch.com/business/article.asp?aid=8087
http://truckdrivingjobssearch.blogspot.com
TheTrucker.com published an Associated Press article by Sandy Shore recently that expresses concerns that truck drivers are going to get hit with higher fuel prices due to oil prices increasing. The New York Mercantile Exchange had ended trading to $81.58 this week, a slight rise in cost. Barrels of oil haven’t been above $80 since the beginning of August.
In the article, “Amid the recession, some trucking companies are out of business, those that are left are ‘doing pretty well’”, Bubba Comer, owner of CFC Transportation expressed the following:
“When things are going good, the truckers are the first ones to feel good,” said Comer. “When things re going bad, they’re the first ones to feel it.”
Now, Comer has about 12 trucks; currently, their only use is for his own product. In the past, Comer has had as many as 60 trucks on the road, but when gas prices went up and rates went down, he parked his fleet.
“I took them off the road when the fuel was $4.68 a gallon, and your freight was declining,” Comer said, noting when fuel costs go up, shippers shop around for truckers, and the rates tend to decease… With diesel fuel at about $2.80 a gallon, you’re probably averaging $1.25 to $1.40 per mile in operating costs, including fuel costs, driver payment, maintenance and insurance. It doesn’t leave very much to pay bills.”
The good news is that economic analysts feel that the rise in fuel costs won’t last long because those who need gas and oil are shrinking. Most analysts feel that gas prices will go down until the first of the year, 2011. With less need comes a lower cost.
Trucking Companies must be relieved with the knowledge that their costs will lower for their last quarter of the year. With the pressures of the economic downturn and cost of drivers going up due to new regulations in driver safety, at least here is some good news for the industry.
http://www.thetrucker.com/News/Stories/2010/10/1/Pumppriceslikelyheadedupwardasresultofoilrally.aspx
http://www.cdispatch.com/business/article.asp?aid=8087