While fuel cost are a growing concern they are not the real problem.
Ask yourself----- If you made $.25- $.75 more cpm would you be going bankrupt now?
Government is scewed up and is responsible for many things but they did not force Business A to do a job for less than business B only to have business B claim they will now do it for less than A until neither one could afford to do the job and still feed their family.
I have worked in the repair industry for many years and when the economy dictates an increase in shop labor rates then all of the surrounding shops will follow the first to raise it within 10% of each other.
If you want your car fixed then labor rates are $90/hr at shop A,B,C,D,E............. Guess what the customer pays for labor? $90/hr..
This keeps everyone in business and removes the cut-throat mentality that has brought shipping rates so low.
That is what I am proposing with the shipping industry. If rates for each type of cargo are set at a specific MINIMUM amount and the frieght MUST be shipped then the rates will be met.
Heres your sign:
Minimum shipping rates.
Flat XXX cpm
Dry XXX cpm
Reefer XXX cpm
OD XXX cpm
HH XXX cpm
Etc...................
Yes this cost will be passed on to the consumer at which point then the government will have the abilty to adjust interest rates, minimum wages, fuel exploration and drilling, alternative fuel sources to reducing needs of fossil fuels in some markets(electric demands) allowing for more in those that are not as econmically adjusted to alternatives (diesel trucks), etc. to boost the economy.
Regulating fuel, broker profits, etc. is NOT the answer.
Unity in pricing Company and O/O is a better solution.
If You are just joining this thread let me say--I do not have the answer. This is just one suggestion freely open to constructive critizism. A multitude of ideas hashed about by all is the only way to come up with a viable solution. You ideas are welcome here.
Fuel Prices are NOT the Problem
Discussion in 'Ask An Owner Operator' started by 7mouths2feed, Mar 12, 2008.
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I KNOW EXACTLY WHAT YOUR TALKING ABOUT, I WORKED IN AUTOMOTIVE REPAIR FOR 5YRS AND RAN A SHOP FOR OVER A YEAR, YOUR RIGHT WE NEED SOMEONE TO STEP IN (LIKE THE B.A.R.) AND CONTROL THE INDUSTRY -
Unity in pricing .
Price fixing
This is illegal -
Okay????
Fuel is not the problem???
Fuel goes up rates don't = fuel being a problem
Fuel goes up rates don't = Rates being a problem
So no matter what and how you look at it rising fuel cost = fuel being a problem...
Fixing?
Unity? there has been none since "deregulation"
Unity in pricing Company and O/O is a better solution.
Please, in today's large corporation market that the US economy has developed into this would be a impossible solution...
Your talking about where a CEO will not get his 3 million in bonuses this year cause he was able to cut throat prices to eliminate competition...
Your barking up the wrong tree if your looking at this as a solution...
It all sounds good but would be a more difficult thing to accomplish then other options.. -
You can't set minimum pricing. when they fuel jumps another $2 gallon it would still be too low.
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OKAY HERE IS WHAT I'M GOING TO SEND CNN TO TRY TO PUT ON PRIMETIME TONIGHT!
What are we going to do about the fuel prices and the transportation industry. The shippers and brokers are unregulated as to what shipping rates should be. Therefore now that the fuel has increased to an all-time high, trucks are shutting down and/or small company's are going bankrupt daily now (a sight that no one knows about except for those in the industry) because the shipping rates are not going up to help compensate for the cost of operating. If anything shipping rates are falling because company's are taking what ever they can get to try to keep from going bankrupt (this has been going on for a while) the trucking industry is failing due to no regulations to establish rates. If the trucks cant afford to operate and supply America with their important and much needed freight, then America stops, something needs to happen soon, everyone including owner operators, small business owners, large fleets, and independents are talking on the road and in trucking forums and news stating that if fuel goes any higher they wont make it and they will have to shut down, if not already shutdown. This is because shippers and brokers(the middle man working with shippers to find trucks) are not regulated on rates. They are not giving rates that are compromising for the increase in fuel and operating costs. I cannot stress enough about what will happen here shortly about trucks stopping. AMERICA will stop too! Our Nation will crumble shortly if we don't do something to regulate shipping rates that follow fuel costs!! -
would you mind I copy than and sent it to FOX NEWS here in Cleveland,OH? -
do it we all need to attack the media, someone will pick it up and the rest will follow! -
i dont think re-regulating shipping will help anything
i wasnt around when trucking was regulated...but i have heard the story's of fierce turf control
under the old way ( regulated shipping) trucks weren't allowed to go anywhere they didnt have authority for...that means only specific shipping lanes
that would end the bouncing around the country i like so much, and instead place us on ....well....basicly dedicated routes
no offence to anyone but i can only stand north dakota for so long before i want a change in scenery -
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