Why are we so concerned with fuel prices?

That works if you're not running load board freight.

 

This is what I’m getting…….fair is fair. I had already had renegotiate not to long ago rate increase due to inflation and fuel cost, but had to go back re-renegotiate due to fuel, settle for surcharge base National (California) weekly base.

 

When this happen before, the price of fuel prices rose extremely fast. There was no fuel surcharge and rates couldn't keep up with the fuel cost, so many companies went out of business. That is when UPS and Fed Ex started charging a fuel surcharge, and trucking soon followed suit. Many companies went bankrupt because they didn't have enough cash or credit on hand to ride it out long enough for the fuel surcharge to catch up. Many small mom and pop truck stops, oil companies, trucking companies and many others went out of business during this time also.

As far as entering the trucking business now...It's very simple, what are you going to do when you throw everything you have into starting your own trucking business and you have a breakdown, the part isn't available due to shortages and you have park your truck, but keep making payments with no income. On top of that you lose your lease with your company or lose you contract because you cant work due to breakdown.

 

I will just run a little smarter and save fuel when I can. Instead of running 70-75 MPH I can slow down if time allows it for delivery. I also will be getting my new truck I ordered last year sometime soon I hope. I ordered it once I knew Biden won since I seen this coming. Better fuel milage on new truck will offset the price of fuel going up based off of my numbers I ran last year. I also ordered a Electric APU for the same reason and it should work fine most of the time for what I do.

 

Base line. That % is added to the rate.

 

Lots of luck with your new rig.

 

Blair you do realize it's not just the fuel
It's going to be any product that has petroleum in it
Oil
Grease
Tires
Alot of plastic products
The thing is Gas & fuel are a large determining factor in the whole economy.. and when people have to pay substantially more to fill their gas tanks they cut back.on other things to save money and then the demand decreases and movement slows down and trucking is based on product movement and rates tend to drop and as mentioned multiple times desperate people do desperate things and that's went Cut Throat Charlie shows up in force

 

I voted possibly. As already mentioned it isn’t the cost of the fuel. It’s the broader effects on the economy. I survived 2008 but it wasn’t easy. Especially since I started in 2008. I am in far better shape financially and business wise now than I was then. So I put possibly because well…. It’s possible. I don’t know the future.

 

My loop of 1500 miles a week costs $1250 of fuel at $5 per gallon. Then tolls are $600. I paid $4.72 at Sunoco today, after discounts.
If 1 gal is $10 then it is $2500.
The loop pays $5600 today. Last week $6000, the one before the last $6400. The trend is forming and at some point, the critical level can be reached. If the fuel price goes up at this rate, it will be sooner rather than later.