Diesel prices increase for 13th week

Sick of it all...

 

The bright side of prices rising like this is that it may, read that MAY, force some more of the marginal guys out of business. Keeping capacity tight right now is the only way we're going to see rates increase to where they need to be, which in many corners is a whole lot more than where they're at.

Buddy of mine got offered a load by a broker yesterday, 44,000 lbs of beer from Ft. Collins, Co. to Appleton, Wi. for...........$900.

 

Maybe I am misunderstanding? Are you saying these fuel prices will have to rise to get rates to where they belong? or that your buddy is marginal so taking a load that pays less than $1.00 a mile will put him under?
Either way I hope you are rooting for your buddy-and somebody told the folks in Ft. Collins that cheap ###### could stay and turn to skunk p**s on their dock! Fill me in on your thoughts? please Thanx

 

It's called Quantitative Easing. The Federal Reserve got the go ahead to print that play Monopoly money in your pocket that we call Federal Reserve Notes. The same thing happened in 08.

 

What I am saying is simple supply and demand 101. We still have enough supply (truck capacity) to keep rates depressed well under where they need to be. Increasing fuel rates have usually tended to weed out marginal operators, and the more of those who go (supply) the more companies will have to pay to get their crap moved (demand).

IMHO, based on everything I learned about this busines 20 years ago, rates need to be north of $3.50/mi., i.e. roughly equal to the price of a gallon of fuel. We used to make very good money with $1.00/mi freight when fuel was .75 to .85/gal. because there was a "spread" with which to work.

As for my friend, he turned it down, of course. I only mentioned it as an illustration of how, especially in areas deemed "dead ends", which Colorado is (he lives in E. Colorado), rates are at money losing levels, let alone "paying for fuel".

 

How come you all still buy it???? You can sit at home and go broke just the same.

 

Up, up and AWAYYYYYYYYYYYY...........

http://ooida.truckmiles.com/page.asp?pg=FuelPrices.asp

 

Oil
+1.38
Price/barrel</SPAN>
$101.01

As of 10:54 AM CST 3/2/2011