Why are we so concerned with fuel prices?

Putin will just sell his oil to someone else, and the oil that user would have bought will be bought by someone else. It's like a game of musical chairs, except there are chairs for all of the players. If Al Qaeda ran Saudi Arabia, or any other country, they would sell every drop of oil they could get out of the ground. ISIS was selling oil to the Syrian government while both were/are at war with each other.

 

I believe it's science. Nobody can argue with science. That's why they call it science. LOL

 

There is a small oil company by my house. They were working in the shop tonight, all his wells are old but produce, he selling the same oil for $100 plus that he was selling for $50, same well same oil. Working hard to not lose any production.
Nice guy, cleans the snow off my driveway with his back hoe, has a giant garage full of toys, but he won’t let me borrow his C 8 Corvette.

 

I'll defer to @Old Man in regard to the ebb and flow of trucking, as I have been out of it for a long time. I was otr with my own authority in the late 80s and early 90s, and at that time I was first made aware of fuel surcharges.

I would say that the cause of the recent super-heated economy, supply chain issues never before experienced, ludicrous government spending, energy policies designed to put us in this position, and finally the happenings in Ukraine are a new set of circumstances to me.

During the Carter administration I remember my folks talking about 17% home mortgage interest. Lest someone thinks I am a partisan hack I will say that Carter oversaw terrible economic times, but in my opinion he was probably the most honest president in my lifetime, with the possible exception of Eisenhower. And, despite the failure, he had the guts to authorize the attempted rescue of the Iran hostages. All this to say that an honest president isn't necessarily a good president, but I still respect his honesty.

Anyway, life will go on, or not? And those that have been somewhat disciplined regarding their finances will muddle along without much pain, and those on the edge will fall back and have to try again. I'm kind of in between the two groups. We have paid for all of our trucks, half of our equipment, (we bought a dozer and loader within the last year that are not paid for). We are in and out of our line of credit with the local bank numerous times in a year, we typically have at least $100k in receivables, and usually are out 30 to 45 days on payment.

Old Man recently shared a touch of his dealings, and I was very impressed that he does not have to work on his money too much compared to us. Different business, but certainly worth considering just how much that is worth when contemplating running under one's own authority. The cost of money is real, believe me.

Anyway, to get back to your thesis Blair that the increase in fuel cost really shouldn't make a huge dent in profitability, I agree that in and of itself the rising fuel cost shouldn't put most trucking enterprises out of business, but I fear that the impact on the economy will reduce demand for trucks to the point that those who are leveraged to the max but doing well right now may soon find that the return to $2 per mile freight, although temporary, will put them under.

Teach you to ask an old fart for their opinion! Lol

 

Agreed. On the steady outbound we have an extra 150 will easily cover the added fuel costs and then some.

 

I agree but I think most people will fold over that thought, It would be one thing if fuel went to 5 a gallon over 3 years, It is quit a different when it went to that in 2 weeks. This admin will have to do something or they will be out the door fast,

 

I was under the impression that the Politics was unmoderated. So why do you say someone would get banned from TTR for using it and why would any subject not belong there per se?

 

Home heating oil to my house yesterday

 

How long will that fuel last?