Are bigger trucks the answer?

Business pushes Congress to clear bigger trucks

By John Crawley

WASHINGTON | Tue May 3, 2011 2:24pm EDT
Image via Wikipedia 

(Reuters) - Manufacturers, retailers, and other businesses are quietly working with truckers in renewing a push for government permission to operate bigger and heavier rigs, to the dismay of unions and safety advocates.
Lobbying coalitions for hundreds of companies hope an improving economy will underscore the case that inefficiency associated with trucking capacity shortages and higher fuel expenses adds costs for shippers and consumers.

They are behind proposals taking shape in Congress to lift size restrictions. They also want to restore the flexibility of states to decide which trucks can operate on their roads.

Union and safety groups vocally oppose any change, saying bigger trucks would erode hard-won regulations and pose new hazards for truck drivers and other motorists just as U.S. traffic deaths are falling noticeably.
Also, smaller independent truckers say new size allowances would hurt their businesses by adding costs for equipment necessary to win business and compete with bigger rivals.

Randy Mullett, government relations vice president for trucking company Con-Way Inc, said business interests are working together on a range of changes in law that would affect regions and businesses differently.

"We don't want to run triples (trailers) through Washington, D.C., but we might want to in the cornfields of the Midwest," said Mullett, whose company is based in Michigan.

Mullett added the larger goal is to "find a way to make this part of the supply chain more efficient," especially with diesel fuel prices above $4 per gallon and other costs going up.

Shipping costs rose by almost 35 percent from 2004 through 2006, which translated into a 2 percent price increase for retail goods. A decrease during the subsequent economic downturn has been followed by an 8 percent shipping cost rise since 2009 due to capacity shortages, higher fuel prices and other factors, according to FTR Associates.

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Commentary on Transportation and The Economy

I think the recovery is taking root. No economy is perfect even in the greatest of boom times BUT steady signs of improvement are showing. As far as how this improvement is affecting truckers and carhaulers, the simple fact is goods have be shipped. Even after considerable damage was done to the economy in 2008 and 2009, life has gone on and food and services have to be delivered.

This alone is a stepping stone to a greater recovery.While there are challenges like high fuel costs, regulation fears , and driver shortages, they are surmountable challenges.The part of the economy that has survived the recession is growing again.

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Transportation and the economy improving?

Positive Outlook for Trucking Industry Tempered by Rising Operating Expenses, Says GE Capital Survey

IRVING, Texas--(BUSINESS WIRE)--Nearly three-quarters (71%) of trucking company executives surveyed by GE Capital, Transportation Finance expect business conditions to improve in 2011 but they are concerned about the impact of external and internal factors on their profit margins. The rising price of diesel, a nationwide shortage of drivers and the twin costs of complying with government regulations and maintaining their own aging fleets are all significant concerns.

For the original article click HERE

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It was bound to happen

I have seen this coming down the pike for about a year now. Regulation after regulation is taking its toll on American Trucking companies including the Autohaulers. Simply put the economy will grind to a halt if regulation sends the costs of transporting goods skyrocketing.

In an industry like Automobiles the need to keep prices as a low as possible is paramount to success.

From KBND.com
Thursday, April 21st 2011 09:53am Image via Wikipedia

This week Oregon Congressman Greg Walden is hearing some tough stories from truckers in Oregon. On a trip through his District, Walden spoke with the owner of a trucking company in southern Oregon who is forced to close because of the cost of fuel and mounting state and federal regulations. "Its was pretty depressing meeting if you want to know the truth in terms of federal regulations and the price of fuel are doing as we try to get this economy going again." Original Article

Senator Sends Letter Opposing Mexican Truck EOBR Program | Transport Topics Online | Trucking, Freight Transportation and Logistics News

From Transport Topics
3/23/2011

Sen. Mark Pryor (D-Ark.) sent a letter to Transportation Secretary Ray LaHood outlining his opposition to the U.S. proposal to buy electronic onboard recorders for Mexican trucks that will travel within the United States.

“I do not believe this concept is fair for U.S. carriers who are not eligible for such payments,” Pryor wrote in a letter dated Thursday.

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A Department of Transportation official said earlier this month that DOT will pay for EOBRs for Mexican trucks entering the United States under an agreement with Mexico. The program is meant to ensure drivers’ compliance with hours-of-service regulations while in the U.S.




To read the full article click HERE

Jobless claims falling...

Image via Wikipedia

From Transport Topics
4/7/2011

Initial jobless claims fell by 10,000 last week, the Labor Department reported Thursday.

New claims fell to 382,000 for the week ended Saturday, below economists’ forecasts of a drop to 385,000 from the originally reported 388,000 in the prior week, Bloomberg reported.

It was the lowest level since Feb. 26.

To read the full article click HERE

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WKRG.com News

DOE Keeps 2010 Diesel Forecast Under $3 a Gallon | Transport Topics Online | Trucking, Freight Transportation and Logistics News

Oil Price Outlook Unchanged from May

Diesel’s national retail price will average $2.98 a gallon this year, the Department of Energy said Wednesday, boosting its most recent prediction by 2 cents.

Trucking’s main fuel will rise to an average $3.13 at the pump next year, also 2 cents over last month’s forecast, DOE said in its monthly short-term energy outlook released Wednesday.

DOE said in its weekly report Tuesday that the national average diesel price was $2.924 a gallon — down more than 20 cents from the year’s $3.127 peak, set on May 10.
The price topped $3 a gallon for eight consecutive weeks ending May 24. Diesel averaged $2.46 per gallon last year.
Gasoline, meanwhile, will average $2.77 a gallon this year, DOE said, and average $2.80 during this summer’s driving season, which generally has the highest price due to strong demand.

Both those forecasts are a penny over last month’s outlook, and the summer figure is 36 cents higher than last year, DOE said. Gasoline averaged $2.726 in this week’s national survey and $2.35 last year.

Crude oil prices — which finished June at about $76 per barrel on the New York Mercantile Exchange — will average $79 in the second half of the year before climbing to $83 next year, unchanged from last month’s outlook.

DOE also said that reductions in crude output resulting from the 6-month deepwater drilling moratorium announced by Interior Secretary Ken Salazar on May 27 will average 31,000 barrels per day in the fourth quarter.
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