Tuesday, July 8, 2008

Naked and Hungry...

I'm certain most of you have read recent articles on how fuel prices are hurting the economy and about the people that are approaching congressmen and senators pleading for help. Like many readers, I am sure you all nod your heads in agreement and volunteer your opinion. The problem is, is anyone listening? Are you mumbling under your breath when you could be taking an active stand against what is happening to our country?

I am having a really hard time understanding why, when as citizens of the United States, we don't stand up for our rights and beliefs. We were all born into this world naked and hungry...screaming at the top of our lungs waiting for someone to pay attention to our cries for help...waiting for someone to cloth and feed us. Our parents accepted responsibility and made sure we were fed, clothed and given shelter to survive. The bare necessities to say the least.


I know you are probably wondering how in the world does the price of fuel have anything to do with babies and the trucking industry...well it is just this simple...with the economy the way is is and the direction it is headed, soon we won't be able to feed and cloth our families, heat and cool our homes or have the money it takes to drive our vehicles to work.Am i being dramatic? Damn right! But if you think it's not going to happen, you are wrong.

Look at the economic situation from the perspective of a truck driver...the person that hauls your food, clothes, fuel, building materials, vehicles and your daily essentials. Currently there are over 600,000 carriers registered with the U.S. Department of Transportation employing over 6 million truck drivers. These trucks travel over 500 billion miles carrying tangible goods which is everything consumed by households and businesses.

To make things simple lets use the example of coast to coast freight. On the East Coast the US recieves imported goods by ships that then need to be distribued throughout the country. From the West coast we have produce that needs to be distributed throughout the country. We will look at the cost of moving freight from the ports in Newark, NJ to San Francisco, CA. This trip is 2,898 miles one way. Lets look at expenses first...

Today the price of diesel in NJ (according to Flying J) is $4.61/gal. The average truck pulling a load gets 5 miles to a gallon of diesel. Simple math: 2,898 miles/5 miles per gallon=580 gallons of fuel
580 gallons of fuel X $4.61= $2,674 to travel from NJ to CA
Today the price of diesel in CA (according to Flying J) is $4.97/gal. Simple math:
2,898 miles/5 miles per gallon=580 gallons of fuel
580 gallons of fuel X $4.97=$2,883 to travel back to NJ from CA
One round trip will cost the driver $5,557 in fuel alone (if the load is dry freight -refrigerated or frozen freight takes another $500 each way for reefer fuel). This does not include the cost of tolls, turnpike fees, scale fees, lumper fees (the person unloading at the receiving end), $75 truck wash before picking up new freight, oil or other misc. expenses. Not to mention the insurance on the truck, insurance on the load, fuel tax and heavy use tax. For this example lets say we are hauling a frozen load. Let's add $1000 for reefer fuel to our truck fuel and an additional $1000 for insurance and incidentals. We are now at $7,557 for a round trip.

Now lets look at what a frozen load is paying for this type of freight. The average load going from the east coast to the west coast pays around $3,800. The produce going back to the east coast pays around $5,500 sometimes a little bit more depending on what it is. So the total round trip pays approx. $9,300. BUT because the loads are booked through a broker, 10% of the total is paid to the broker right off the top leaving $8,370 to the truck. After expenses, this is $813 to the driver. Keep in mind that the truck has now been on the road for about 16 days with drive time and layover for load delivery and pickups, if he's lucky. This is of course before taxes.

In the first quarter of 2008, there were 825 trucking companies nation wide that went out of business due to the high cost of fuel. Now I know you are thinking that's nothing considering that there are aover 600,00 carriers in the US. Of those 600,000, 85% are carriers with less than 20 trucks and of that 79% have fewer than 6 trucks. If you were to do an internet search on some of the larger companies such as CH Robinson, Werner, Schneider National, etc. you will see that the layoffs, due to the high price of fuel, are astronomical. They are in the thousands.

As a country we are spoiled...and yet we complain about not being able to take our families on vacation because of the cost of fuel, we buy expensive non-fuel efficient SUVs, recreational vehicles (boats, off road vehicles, etc) and we complain about the increasing prices of groceries and clothing. Does anyone ever stop to think how we are affforded these luxuries?? Do we consider the fact that the people that "Move America" are suffering so that we can continue to be a spoiled nation?

It's time as US citizens that we take a stand against cheap freight & high fuel prices. I have attached a link to the bottom of my blog that lists the email addresses of the US Governors, Senators and Congressmen. Please take the time to send an email to at least one person on the list and voice your opinion.

In the dire situation that our country is in, it won't be long until we are all, once again, standing naked and hungry screaming for attention...by then it will be too late.

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