Diesel Wallet Men

Diesel Wallet Men

Is it Possible to Fight Against Rising Diesel Prices

April 1, 2008 witnessed a trucker shutdown that was a drastic step designed to try to combat the rising cost of diesel fuel that is affecting seriously the income of American truckers in a negative sense. The drivers, owner/operators in most cases, are not making enough profit to pay for the cost of operating their trucks. Just the cost of buying a big rig can exceed $100,000, excluding the added expense of maintaining the vehicle. Many small trucking companies have already given up due to the inability to meet today's higher operating costs.

In a report released by the Avondale Partners, LLC, it was said that the number of trucking companies have gone out of business in the first quarter of this year. This report stated that an estimated 42,000 trucks, which is 2.1 percent of this nation’s over-the-road heavy-duty trucks, went out of business during the first three months of 2008. Some trucking companies pay their drivers a fuel surcharge to help with the cost of fuel but the fuel surcharges paid are not enough to keep up with constantly increasing fuel costs. As of April 2008, 24.3 cents on the gallon are collected in federal fuel taxes on diesel. Some shippers are refusing to pay any fuel surcharge or, in the case of some brokers, collecting it but then failing to pass it on to the company.

Americans are dependent on these men and women of the highway for delivering everything from the food they eat, to the clothes they wear, to the toys for their children. The hike in diesel prices will eventually affect the price of all merchandise sold in the American market place. The high diesel prices are not only going to drain a trucker's wallet at the pump but will increase the prices an average person pays at the supermarket and at all retail stores, businesses that will have to charge more to cover their costs and will pass the charges on to consumers in the form of higher prices on their products.

CNN’s Jack Cafferty wrote in an article "food inflation in the U.S. is at its highest level in 17 years and could get worse. The rising cost of everything from milk to eggs to chicken is hurting many Americans especially the poor. It's also tough on businesses, like bakeries and delis that have to explain price increases to their customers. What poor people normally do is to give something else up in order to eat due to costlier food. Although the price jumps for various foods are due to many factors, including higher commodity costs for things like wheat, corn, soybeans and milk, one of the main reasons for the jump are higher energy and transportation costs."

The purpose of the continuing plans for trucker shutdowns is not to penalize fellow Americans; its motive is to draw attention to the importance of trucking to the American economy and to request help through some relief from the federal fuel tax for big rigs travelling the nation's highways.

 

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