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Fuel Prices and Trucking; A Reality Check On What Drives America

It appears we are having a terrible is more expensive? This is causing
situation with the diesel fuel prices in consumers to be damaged in that the cost
the US. It is affecting everything, of everything goes up.In 2000 trucking
since everything we buy is shipped by companies all started raising prices 5%.
train or truck and most of the times And then another increase eight to ten
both. We have artificial fuel price months ago. We have not seen a fair
manipulation and large trucking companies price for fuel in UT, MT, WY, CO either
operating at less than 3% margins. We yet we should have. The railroad
have seen 100s of medium size trucking industry is fairing only a little better
companies file bankruptcy and 1000s of able to import their own fuel cars to the
small companies file as well between 1999 locations they need to fill at and buy at
and 2002 and we appear to be headed for a bulk price where it is cheaper. After
another round here in 2005. This is huge consolidations and soon to be more
causing problems in the used truck sales in the rail industry with Canadian Rail
market. We have noticed this affect with Companies. We see problems here too.
used trucks on this market it is Especially recently when the Railroads
affecting new truck sales right after were shut down due to freezing of
several major mergers. There have been switchers and safety devices needed for
lay offs at all large trucking company operations. We think we maybe able to
manufacturers. Employees from Volvo, realize a great market in these venues in
Peterbuilt, Daimler Chrysler who have the future.When trucks and trains stop,
been laid off, some have hired back a few America Stops too. Most grocery stores
due to the emissions rules and need for and Major Retailers operate on a real
cleaner trucks and also trucks which are time basis, meaning that Inventories of
more efficient. The efficiency saved at the past and big warehouses are not
these fuel prices will nearly pay the needed to the same degree as before.
additional costs of the payments and This is what the new economy is bringing.
truck manufacturers intend to capitalize It means lower prices to consumers due
on that fact.Fuel prices are a disaster to inventories being less and less cost
in CA and there is a mandatory diesel needed to store goods for any amount of
engine emissions statue for vehicles over time. It also means foreign trade zones
14,500 GVW. The EPA laws are also causing and areas where there are no inventory
underground tanks to be continually dug taxes such as NV will not be as
up everywhere to protect the ground significant as before, but still needed
water, all these things combined are to compete in the fast paced World.
causing huge issues on top of the already Those foreign trade zones, which were
high diesel prices and insane government decreed after many of the BRAC military
add on taxes. Oregon State has now base closures have a one ups man ship on
decided to induce as well; any truck with those other areas with warehousing
no OR plates will be charged extra tax incentives. Places such as Columbus OH
for fuel. Oregon is trying to keep road and Mathers AFB in Sacramento CA. Of
tax money due to a recent law passing to course there are over 400 of these
keep registration fees low. Consumers foreign trade zones in the US now and
believed they would save money by low more than 100 more waiting with permits.
registration, now it is simply added to Some of these old military bases are now
diesel fuel, which affects everything you superfund sites such as Dobbins AFB out
buy and leads us into recession. This is side of Atlanta. As America matures, we
a big tax on all diesel sales of trucks. have learned allot from our past and we
Washington State; same thing; some should be taking these learned
highest prices in the Nation are now in experiences with us as we deal with any
the west. Even ID, AZ and NV are raising potential threat of economic melt
prices but keeping them just under WA, OR down.With Inventories being less for
and CA. Many truck stops in NV, and AZ large retailers, it also means that small
even though just over the CA border are manufacturers who want to service the
keeping inline with just under a nickel large retailers will have to be able to
per gallon less. Big saving for trucks adapt or die to the relentless need for
with 200 gallons of fuel capacity. So that retailer to move products faster and
now the truck stops in NV, AZ are faster and inventory the products at
crowded. And the ones in NM, TX, KS, OK their manufacturing facilities, and then
insane where fuel prices are a good 10 to move them quicker. But they cannot
20 cents per each gallon cheaper. Truck afford to run their own trucks because
stops in San Bernardino, LAs main the fuel costs will take them out of the
distribution hub are busy, but are not running to offer the lowest cost to the
selling much fuel, as trucking companies purchasing departments of retailer, store
and drivers are only buying enough to the product, make the product, ship the
make it out of the state where they can product and offer the best terms on
fill up at lower prices. In NV and AZ payment to the retailer. Who is not
where fuel does not get taxed as much and anticipating on paying quickly, but
wholesale prices are lower but prices stringing out the payables almost as bad
only 5 cents less. Diesel fuel Sales and as Sears in the 70s and 80s. Look at the
distributors are making insanely high new boss at Home Depot, from GE, savvy
margins, or at least a lot more than guy, watching numbers and look at their
normal. Noticed that where most of the CFO, both sharks; great for shareholders
people live, such as near water (great equity, but devastating for the small
lakes and Ocean) that is where the fuel manufacturers.




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