Fuel Prices are NOT the Problem

Well what I'm trying to get at is everyone has to know their bottom line (break-even point) and a range (say yours is $1.50, but you can take a $1.25 pm load if you know you can make it up by getting a $1.75 pm load to average it out) to work with.

The only way "bottom-feeders" can survive is if they don't have a huge mortgage (ie the harbor trucks bought at $5K), they buy insurance and just maintain it long enough to get their permit(s); and skimp on the maintenance.

I know that's how it works for the dump biz but how can that work for OTR in regards to IFTA and permits. Hell, I was checking out Idaho's weight permits and they charge by gross weight x miles to run in that state. How is it possible to "escape" permit fees and taxes without getting caught?

Dose DOT have it's own version of Special Order 40? (the law in L.A. that protects Illegal aliens from prosecution; allows them to work, to drive, and be treated like they're doing nothing wrong)

 

http://fox59.trb.com/

That's it... They finally posted the video of the report I watched last night....

You will need to click on the video yourself... Its the one listed "gas prices go higher"

 

I thought it was pretty cool.. I have seen a few clips that mention fuel prices but really the clip focused on gas and it effecting travel...

This is the first one I have seen where it actually showed that it was having a great impact on truckers and thier business..

I sent a email thanking them for running it.. Told them its not that often somebody steps up to voice truckers concerns...

Anyways great to see the word getting out...

 

The thing about the high fuel prices resulting in companies selling or downsizing at the very least, will cause a shortage of both trucks and drivers in the future when the economy begins to turn around. Rates will go up for freight and rates for drivers will of course increase to meet the future demand.

This is the same cycle we live through trend to trend.
We as O/O's should recognize these trends, capitalize on the upside and "save for the rainy days". Because in a few years we'll be right back here whining on each others' shoulders once again.

We need to step back and analyze these trends and build safe-guards to protect ourselves without infringing on the free market system. Nixon tried price controls and that attempt to control inflation failed miserably.

 

True but with a little twist this time... Trucking companies have been claiming for several years there is a shortage of drivers, when in reality there was absolutely no shortage... What was thier fix for the shortage of drivers that they claimed we had? forighn labor.... So, things are not going to be "the same cycle we live through trend to trend." Why? becuase your going to be competing against companies that pay driver MUCH less then companies pay American drivers.. Mexican trucks are comming (yes I know a few are already here, but not in the number I am talking about) and this shortage you are talking about is the perfect reason why they will be able to get in this time around.....

 

Thanks for posting!

 

That was a good story. It's a start anyways now they just need to keep pushing it

 

But there is a shortage of Professional Drivers. For the most part based on what I've seen and what seasoned drivers are saying..we mostly have Steering Wheel Holders

Another good reason for us as O/O's to have some sort of an organization that represents us as Business Owners vital to the health of the nation's commerce. No offense to company drivers but O/O's (and this is based on my experience as an O/O in the dump biz) run more efficiently and more professionally. It's more cost effective for us to run loads than a company driver. Why?

• Most of us run our own authority so therefore we have our own
• liability insurance

We pay for own

• Fuel
• maintenance
• health insurance

Running company equipment and paying company drivers is not often cost effective
Companies also must pay

• Benefits
• Workman's comp
• Contribute to UI (Unemployment Insurance)

As O/O's, we have the freedom to chose who we negotiate in business transactions.
As O/O's we know time is money and will perform our best to satisfy our customer.

Not that everyone is cut out to become an O/O and not all company drivers are less than superior employees. But O/O's for the most part, are more cost effective in most cases.

 

Also, we need to prepare the accident/safety records of these Mexican trucks versus American trucks. The public is by far safer with American drivers behind the wheel than Mexican truckers who we know are not

• Adequately trained
• Running legal HOS; and are
• Paid considerably less than American drivers

Why can we not present those issues and condition to the soccer moms who btw, vote. Why can we not convince the insurance industry to accept that the risk/loss ratios are significantly much higher with Mexican drivers.

The problem is when we mention Mexican drivers, the various Hispanic groups take offense and either protest or lobby our congress to relax even more rules regarding the issue in the name of "diversity". This issue is not about diversity. It's about safety and it's about taking care of America's interest over a third world nation whose rich push off their poor and make them our problem.