Posts Tagged “small fleet”

High Diesel Fuel Costs Lead to Other Problems for Truckers

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Much of the USA is sizziling in triple digits and number 2 diesel prices, while not at record levels, are still high enough to make it difficult for a lot of owner operators and small fleet owners to make ends meet.

For example, the Flying J Truck Stop here in Grand Forks, ND has number 2 diesel fuel for $3.83 per gallon.  That is above the national average for diesel this week, which is at $3.79 per gallon.

Duane Riendeau, 65, was an owner operator for 32 years.  Five years ago he became a company driver for Troy Pecka Trucking Co. Inc. of East Grand Forks, MN.   He sold his equipment stating trucking has become “too costly” with all of the government regulations and with the price of diesel fuel pushing $4 per gallon.    He knows several owner operators personally who are just barely making it, because freight rates are not keeping up with costs of operation.

Although Randy Boushey of A&L Potato Co. Inc. in East Grand Forks, MN still has his CDL and continues to own three 18 wheelers, he only uses his trucks for deliveries within a 300-mile radius.  His potato packing and shipping company has customers well beyond the 300-mile radius and he sees more late deliveries due to aging equipment with mechnical problems.  He cites high fuel costs as one of reasons truckers are delaying replacement of  tractors and trailers.

It seems there’s alway excuses for diesel fuel being higher than it should be, despite Americans reducing their fuel consumption.  Whether it is problems with refineries in Illinois and Indiana cutting their out put, or economic woes in Europe, crazies in the Middle East pulling their stupid terrorist stuff, or any number of other factors – the reasons seem very few for prices to drop.

The experts and observors of oil prices are genenerally saying diesel prices will only go up until after Labor Day, before it starts dropping; unless of course some idiot in Syria, Timbuktwo, or someplace else does something which may not even be remotely connected to the price of oil.  But that doesn’t seem to matter.

 

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