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Reply #13: I need to fuel up in the morning before I head out [View All]

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Ikonoklast Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Mar-08-08 10:44 PM
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13. I need to fuel up in the morning before I head out
Right now I'm sitting in upstate NY, $4.09 a gallon. It will cost me around $900.00, yes, that's $900.00 to fuel up, and I'm not even all the way empty; I can hold three hundred gallons of diesel.

Do the math. 300 X $4.09. And, I have to do that every third day I operate out on the road.

Or go out of business.

I'm not willing to be an alarmist, but very soon you will see $10.00 loaves of bread in grocery stores, if this trend line in transportation costs continues.

The rates to haul freight have not kept nearly kept pace with costs, and because of not keeping up with spiralling costs of operation, the cheaper carriers are going out of business at an alarming rate. As they leave the industry, those that are still here are trying to charge shippers and brokers accordingly.

Shippers and freight brokers are living in dream world still thinking they can get their product moved for a dollar and a quarter a mile, when $1.75 a mile is break-even point.

Freight is starting to sit on docks because carriers are unwilling to haul it at a loss.

I just hauled a load of juice to a Wal-Mart DC. It paid $3.00 a mile, including 124 deadhead miles. $0.77 of that went out the stack as burned diesel fuel, per mile.

Go down the road and throw a dollar out the window every seventy-two seconds, for every hour you drive. See how long you can do it.

I'll be lucky to come out of this area on $1.50 a mile. That's a dead loss for me.

I spent more on diesel last year than on my truck, trailer, maintenance, all taxes, insurance, health insurance, house payment, car payment, and take-home pay combined.

I know exactly how the cost of fuel impacts my business.

It's killing it.

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