Trucking news: proposed trucking shutdown may be under way
Jeff Berman, Senior Editor -- Logistics Management, 4/1/2008
WALTHAM, Mass.—As reported by LMlast week, it appears that a trucking shutdown staged by owner-operators may be under way, according to media reports and Internet discussion boards.
The reason for the shutdown is primarily driven by the current run-up in diesel gasoline prices. Although the nationwide average price per gallon of diesel gasoline slipped 2.5 cents to $3.964 cents this week, according to the Energy Information Association, a unit of the Department of Energy, prices hit new records over the past several weeks. And in some parts of the country diesel is already over the $4 mark.
It is widely believed that the talk of a shutdown originated on a trucking Website entitled “Trucker to-Trucker,” where Dan Little, owner of Little and Little Trucking LLC, who goes by the handle of Trucker Dan, is called for truckers to shut down for one day, beginning at 8 a.m. on April 1.
Little wrote that when the shutdown begins truckers would not accept any loads at any price until the Federal Government admits and puts into action a plan that will give all owner-operators some help. He said this government help should come in various forms, including: suspending all federal and state fuel taxes until the economy recovers; having the federal government create an oversight committee to oversee insurance premiums charged for Class 8 truck insurance; and to stop allowing large trucking fleets to self-insure, which would create a more level playing field for all trucking companies, among others.
Some media reports published today have reported that the shutdown is already underway or is slated to kick off at midnight tonight and last until April 3, while others have indicated it will last until April 5. And others said that it would be for today only. While it is difficult to specifically pinpoint when it may begin, coupled with its potential scale and impact, it is clear that it is more than a rumor at this point.
This was made evident from a report released earlier today from Central Florida News 13, which said that 70 trucks were lined up at the Port of Tampa to join the protest. The report also quoted a driver whom said if the shutdown were to last for five or six days it should be viewed as a statement that owner-operators are not going to tolerate increasing diesel prices until their compensation increases and they receive purchasing power that is more in line with what large fleets receive. Another report from WESH 2 in Orlando stated that drivers are saying that if diesel spikes another 50 cents per gallon they will have no other choice but to park their trucks. The report added that as part of the planned shutdown, truckers said they plan to either park their rigs, go 45 mph on highways or post protest signs on their trucks.
And an Associated Press report published earlier today said that truckers hope today’s strike might pressure President Bush to stabilize fuel prices by using the nation’s oil reserves, but it added that many truckers still doubt the shutdown will be effective because trucking companies are not on board and there is no central coordination. It also said that rigs on the New Jersey Turnpike today were going as slow as 20 mph, and that other truckers were protesting and chanting at a service area near Newark, N.J.
The American Trucking Associations (ATA) called on the White House last week to release oil from the Strategic Petroleum Reserve (SPR) to curtail this ongoing historical run-up in crude oil prices, which continue to hinder myriad segments of the U.S. economy and freight transportation—especially trucking—in general. And last month the ATA projected a record-high diesel bill for 2008, noting that that trucking industry is on pace to spend $135 billion on fuel in 2008—based on current price forecasts. This estimate, said the ATA, would be a $22 billion increase over the trucking industry’s $112.6 billion 2007 fuel tab.
Owner-Operator Independent Drivers Association (OOIDA) Executive Vice President Todd Spencer said that his organization wants to make it clear to consumers that while consumers often pay higher amounts for shipping when fuel prices go up, that money does not always trickle down to the person—or driver— actually paying for the fuel.
“It’s a stoppage in the flow of transactions creating a heart attack in the system,” said Spencer. “It’s an exploitation of shippers, truckers, and, ultimately, consumers.”
OOIDA Spokesperson Norita Taylor told LM in an interview that the OOIDA would like Congress to enact legislation mandating 100 percent pass through of fuel surcharges and transparency in those transactions, noting that when prices on the stores shelves go up, it is not because of truckers, because they are often not seeing these rises trickle down to them because of brokers or middlemen.
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It is time for Congress to allow drilling and new refineries to be built. The Sierra Club has a stranglehold on us all because no one wants to tell them "NO MORE". Energy Independence is what we need. It will only be accomplished if we realize that oil is not the "Evil Menace" but the lifeblood of our economy.
Doug Tibbetts - 2008-7-4 21:13:00 EDT -
