Why are we so concerned with fuel prices?

Back in 2012 and 2013 fuel was over $4 out west. My fuel cost was in the neighborhood of 85cpm pulling a cattle trailer. We’d load fats out of Montana going to Fresno for $3 a mile, then load calves out of CA back to Eckley CO for $4 a mile. Then bounce up to Montana again. It wasn’t a lot of fun but we all made it work.

I guess the upside to what I do is it allows me to follow the money so to speak, and I haven’t burnt any bridges anywhere I’ve been. Back in 2019 I did pretty well doing food grade work when other stuff was low. Now I’m at a place that has a ton of direct freight that pays well. If things start to go south here I’d reach out to some contacts and get back into some specialty work if I can. I’m not too concerned because I don’t have a lot wrapped up in equipment, this truck can pull a lot of different trailers if it has to.

 

Once the $100K used Cascadia crowd goes under the industry will be better off.

It’s too easy to start up an authority , and that hurts the industry in the long run.

 

Good times or bad, there's never any shortage of dreamers. They'll get educated and if it doesn't completely break their spirit maybe we'll see them again on the next upswing.

 

Can’t wait to see the new tire prices

 

Higher fuel prices the truckers have to pay is only the short term concern. The long(er) term concern is that it tanks the economy and freight dries up putting rates in the toilet.

 

$685 ea for 2 new xze steers last week, they were somewhere around $520 2.5 years ago when I put the last set on.

425 22.5 floats were $1000 a pop a few weeks ago….

I said in another thread Memorial Day weekend we will know a little better where this is headed, rates could tank to $2 a mile, but it’s costing everyone, including the megas more to run, so I see rates getting left behind on inflation and people start popping off at $4 a mile when fuel is $7-8 a gallon, (basically giving the same effect)

 

Exactly, Here in Australia any self respecting Transport Entity has some type of Rise & fall Fuel Levy in Place.. In my case, I've had one for 15 years..!!

Quite frankly, If you Don't have one in Place? you WILL inevitably go Broke..!!

 

Truck is paid off,car is paid off,house is paid off
90k in the bank and taking 3 months vacation.
Life is good.c u guys when things get better.

 

I suppose that one real distinction between the current rise in fuel prices and typical supply/demand inputs is that the actions in Eastern Europe instantly changed the predicted supply, rather than a sudden increase in demand. So, the typical increase in demand is not the driving force behind the rise in prices.

As others have mentioned, this is likely to have adverse affect on the goods and services because disposable income, or actually income in general will effectively go down considering inflation.

On one hand, if domestic production can ramp up in short order (6 months ?) then this could actually be a good little check in the inflammatory nature of the supply chain, and hopefully we have learned a bit about the danger of being reliant on other, potentially hostile, nations.

While I use trucks in our business I am not in the trucking business. I agree that this goes far beyond the simple increase in cpm that higher fuel prices cause.

 

I am considering working a lot less myself. I'll run if the rates are good but probably run more short haul for awhile. My fuel cost is teetering around .48cpm and I'm consistently making 3.50-4 all miles so it isn't really bothering me yet but you have the right idea. Structure your life where stuff like this doesn't rock your world too badly. Spend less than you make. Don't be afraid to take a day off, even if it's just for personal sanity with all the negative floating around out here.

My insurance was $11k I think last year. I pay in full in June every year. It has more than paid for itself with the rates since then. If I sit at home the truck doesn't eat fuel or break.

 

The problem is a little more complex than just the cpm it cost to run a truck down the highway. Prices for everything will continue to go up, because the price of petroleum effects everything in multiple ways. Plastics, rubber, every form of energy, transportation, literally everything is effected by rising petroleum costs.

At some point, the economy as a whole just won't be able to take anymore, and it will either contract or maybe even implode. When that happens, we will see freight rates plumet. With all the new authorities the last few years, it's going to be far worse than 2008 was. All these people with financed to the hilt trucks and trailers will be pushing rates down hard, just trying to stay afloat. That is what will put many out of business.

Some of us have seen this happen before, and the writings on the wall. It's coming, and jmo, but I think this time is gonna be really bad.