saying NO to cheap freight

Dude thats totally smooooooooooth! Love it! Thanks!!!

 

I don't recall seeing the seasonal price gouging until the 1970's when OPEC nationalized the oil fields and starting controlling world oil supplies. Prior to that prices were very stable. There were those who had cut rate gas stations, but most kept their prices about the same year around.

 

It's not price gouging. That would imply that the stations are making more on the fuel now than they did last month. Use of winter heating oil removes supply from the market for diesel. From the several reports I have read, after last winter more people are upping what they normally would buy.

 

They had heating oil back in the 70's, too. In fact, many schools down in my neck of the woods heated with oil or coal furnaces. I would think that down south we had more schools and businesses that used heating oil then than we do today, yet we pay a premium based upon seasonal changes. That means that the oil companies are not intelligent enough to plan in advance of the seasonal demands. I don't think that these people are dumb. They are merely taking advantage of the situation. With all the mergers of oil companies that have been allowed to take place the last couple of decades, there is less competition. With less competition comes higher prices. This is nothing short of greed. I don't have a problem with anyone making a profit, but when companies deliberately use shortage of supplies as an excuse to raise prices when they control the supplies, then I do have a problem with them. I would prefer to see these oil companies broken up into smaller pieces where we have more competition.

 

Probably should have said it better, but I meant the guys who buy/sell the stuff on Wall Street & around the globe in financial sectors.

Always kind of thought that if they had to actually take inventory or possession of what they were bidding up on the market, they would knock off some of their lunacy.

 

I have heard that Pilot and some of the other big oil retailers are playing with oil futures and they are taking possession of the oil. But, many of the speculators will never take ownership of anything that they bid on. It would probably force some to abandon their bidding if they had to actually purchase their oil rather than buy futures and pennies on the dollar.

 

Funny this came up as Bill and I were talking about it one day. He was telling me how it got Flying J into trouble and ultimately caused their bankruptcy. Although they were on that path regardless with many poor business decisions over the years trying to be "all things" branching out way past what their niche was. Anyways, on that last run up in oil to a $147 dollars a barrel a few years back they speculated and lost big time when the price sank back down to $60 a barrel. They ended up selling diesel at prices far below what they had in the oil then Pilot entered the picture and the rest was history...

 

Fair enough. But remember these speculators also speculated oil to rock bottom prices as recently as 98-2000.

They speculate the prices as reaction to many variables. Supply and demand, current economic conditions, OPEC dictation of flow, foreign national security and economic conditions.

And let's face it, these are pretty wild and rough times compared to the late nineties.

Not trying to start an argument with you. But I still think your wrong.


Conservative to the Bone.

 

You have to look at this way heating oil doubles the demand on oil companies in the winter. So means adding more people and having more breakdown in order to keep up with demands. Fuel break down over time and cant be stores over long periods so they cant produce ahead of time do you will be running partially broken down fuel not including it would cost more due to oil companies needing more storage space. Pipe lines maintenance and operation cost also goes up in the winter. Just as trucking companies operation cost goes up in the winter

 

BAYOU - Excellent! I am not a broker personally but I do work for a broker and I'm sick of the word CHEAP. I hear a customer say cheap and I move on! Fair price, I can deal with. Cheap I cannot. My father fed out family for more than 20 years driving truck and working his rear end off. I remember being a kid in the 80's and it always seemed like he was doing good and everyone was happy. Over the years I saw my father working harder and harder for less and less money and every time I arrange a load I think about that truck driver. If the load does not pay a fair price then what vested interest does the driver have to show his professionalism? What if because the loads are not paying much that driver has to work so much harder that he is driving extra hours, slamming caffeine, and doing whatever it takes to get the deliver done so he can go on to the next and make more money. I hope brokers read this and for one moment think about it! Stop being dirtbags. Stop giving other brokers a bad name. Go play in traffic. Like I said, I am personally not a licensed broker. But I am a consultant and have to fix what crap brokers do to businesses and carriers all the time. Crap brokers are also putting the power in the hands of the Customer, which is not always a bad thing but at the same time all they want is great transportation "cheap", and that is not going to happen. Shipping has turned into a commodity when its a service. If I had my way, I'd make sure that drivers can stand proud like I once saw my father stand proud.