Diesel Wallet Women

Diesel Wallet Women

Rising Diesel Prices

The trucker shutdown on April 1, 2008 was a drastic step designed to try to fight the rising cost of diesel fuel that is seriously reducing the income of American truckers. 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, without 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 nations 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 increasing cost of diesel will eventually affect the price of all merchandise sold in the American market place. The high diesel prices will not only drain a trucker's wallet at the pump but will raise 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.

An article by CNN's Jack Cafferty says " 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. For many poor people, costlier food means having to give something else up in order to eat. 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 are not to penalize fellow Americans; it is simply to focus attention on the importance of trucking to the American economy and to request help through some relief from the federal fuel tax for big rigs traveling the nation's highways.

About the Author

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