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

It appears we are having a terrible situation with the diesel fuel prices in the US. It is affecting everything, since everything we buy is shipped by train or truck and most of the times both. We have artificial fuel price manipulation and large trucking companies operating at less than 3% margins. We have seen 100s of medium size trucking companies file bankruptcy and 1000s of small companies file as well between 1999 and 2002 and we appear to be headed for another round here in 2005. This is causing problems in the used truck sales market. We have noticed this affect with used trucks on this market it is affecting new truck sales right after several major mergers. There have been lay offs at all large trucking company manufacturers. Employees from Volvo, Peterbuilt, Daimler Chrysler who have been laid off, some have hired back a few due to the emissions rules and need for cleaner trucks and also trucks which are more efficient. The efficiency saved at these fuel prices will nearly pay the additional costs of the payments and truck manufacturers intend to capitalize on that fact.

Fuel prices are a disaster in CA and there is a mandatory diesel engine emissions statue for vehicles over 14,500 GVW. The EPA laws are also causing underground tanks to be continually dug up everywhere to protect the ground water, all these things combined are causing huge issues on top of the already high diesel prices and insane government add on taxes. Oregon State has now decided to induce as well; any truck with no OR plates will be charged extra tax for fuel. Oregon is trying to keep road tax money due to a recent law passing to keep registration fees low. Consumers believed they would save money by low registration, now it is simply added to diesel fuel, which affects everything you buy and leads us into recession. This is a big tax on all diesel sales of trucks. Washington State; same thing; some highest prices in the Nation are now in the west. Even ID, AZ and NV are raising prices but keeping them just under WA, OR and CA. Many truck stops in NV, and AZ even though just over the CA border are keeping inline with just under a nickel per gallon less. Big saving for trucks with 200 gallons of fuel capacity. So now the truck stops in NV, AZ are crowded. And the ones in NM, TX, KS, OK insane where fuel prices are a good 10 to 20 cents per each gallon cheaper. Truck stops in San Bernardino, LAs main distribution hub are busy, but are not selling much fuel, as trucking companies and drivers are only buying enough to make it out of the state where they can fill up at lower prices. In NV and AZ where fuel does not get taxed as much and wholesale prices are lower but prices only 5 cents less. Diesel fuel Sales and distributors are making insanely high margins, or at least a lot more than normal. Noticed that where most of the people live, such as near water (great lakes and Ocean) that is where the fuel is more expensive? This is causing consumers to be damaged in that the cost of everything goes up.

In 2000 trucking companies all started raising prices 5%. And then another increase eight to ten months ago. We have not seen a fair price for fuel in UT, MT, WY, CO either yet we should have. The railroad industry is fairing only a little better able to import their own fuel cars to the locations they need to fill at and buy at a bulk price where it is cheaper. After huge consolidations and soon to be more in the rail industry with Canadian Rail Companies. We see problems here too. Especially recently when the Railroads were shut down due to freezing of switchers and safety devices needed for operations. We think we maybe able to realize a great market in these venues in the future.

When trucks and trains stop, America Stops too. Most grocery stores and Major Retailers operate on a real time basis, meaning that Inventories of the past and big warehouses are not needed to the same degree as before. This is what the new economy is bringing. It means lower prices to consumers due to inventories being less and less cost needed to store goods for any amount of time. It also means foreign trade zones and areas where there are no inventory taxes such as NV will not be as significant as before, but still needed to compete in the fast paced World. Those foreign trade zones, which were decreed after many of the BRAC military base closures have a one ups man ship on those other areas with warehousing incentives. Places such as Columbus OH and Mathers AFB in Sacramento CA. Of course there are over 400 of these foreign trade zones in the US now and more than 100 more waiting with permits. Some of these old military bases are now superfund sites such as Dobbins AFB out side of Atlanta. As America matures, we have learned allot from our past and we should be taking these learned experiences with us as we deal with any potential threat of economic melt down.

With Inventories being less for large retailers, it also means that small manufacturers who want to service the large retailers will have to be able to adapt or die to the relentless need for that retailer to move products faster and faster and inventory the products at their manufacturing facilities, and then move them quicker. But they cannot afford to run their own trucks because the fuel costs will take them out of the running to offer the lowest cost to the purchasing departments of retailer, store the product, make the product, ship the product and offer the best terms on payment to the retailer. Who is not anticipating on paying quickly, but stringing out the payables almost as bad as Sears in the 70s and 80s. Look at the new boss at Home Depot, from GE, savvy guy, watching numbers and look at their CFO, both sharks; great for shareholders equity, but devastating for the small manufacturers. Will these large companies look to Sam Walton's buy American philosophies? No, they are beholden to Wall Street to save a buck and if that buck is in China, tough. Great makes us competitive here, but we have a standard of living to protect, if we erode our job base and therefore having a declining middle class we lose anyway. Home Depot loses their market and we lose to China. We have allowed 1 million immigrants per year to enter our country nearly unchecked, what happens when these new people are happy at a lower standard of living, driving the wages lower and then causing civil unrest with different races vying for the same jobs before we can stop our self segregation and start melting as was our original plan. If we kill our job base, we are sunk. All over oil prices? It is time for us to stop this bull and move back into the grove. America works better when everyone is winning together. That same mission works well on a sports team, military armies and even in the economy. Everything relates to everything else and nothing can be considered of no value and no decision of policy should be arbitrary. Deciding not to decide is a decision and that has not worked yet and we need to do something now.

"Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs

---

Israel Termed A ?Nuclear Power? By US Officials

In the last two weeks, two non-senior US officials indirectly... Read More

Gasoline Prices Going Through the Roof

OH MAN!Here we go again. I guess now the "proof... Read More

Monetary Flows, Retained Earnings, Over Regulation and Abundant Resources

All countries have specific things that are abundant in the... Read More

Another Round of EU-Iran Talks Starts April 10 - Will Iran Be Referred To The UN Security Council?

Iran's objection to ratifying the International Atomic Energy Agency's Additional... Read More

Competition Laws

A. THE PHILOSOPHY OF COMPETITIONThe aims of competition (anti-trust) laws... Read More

Bodyguard Training in Mexico; My Experiences While Providing BG Training in Mexico

Mexico the country of Salsa, Tortillas and Corruption; I first... Read More

Workaholism, Leisure and Pleasure

The official working week is being reduced to 35 hours... Read More

3D Tactical Image Projection Enhanced Decoy System

I propose a special Projection Device code-named: "TIPED". This system... Read More

Liquidity or Liquidation

Large parts of the world today suffer from a severe... Read More

An Introduction to the Connecticut State Budget for 2004-2005

The Connecticut Conference of Municipalities (CCM) is interested in the... Read More

Questioning Both Sides of the GM Crop Debate

One question not addressed in GM Crops and Monsanto Terminator... Read More

The Absurdity of the Public School Monopoly

The notion that local governments should have almost total monopoly... Read More

Joseph Campbell - Permanent Human Values

At the start of the US involvement in WWII Joseph... Read More

Ohio Department of Transportation; Sector Economic Reality

Ohio's transportation sector seems to be strong, even with Ohio's... Read More

Politicians Will Save Civilization

Most politicians are completely out to lunch and totally Machiavellian... Read More

World Moving from Socialism to Capitalism

The recent Jakarta summit of Asia and Africa brought remembrance... Read More

Gun Control? How About Crime Control Instead?

The second amendment to the U.S. Constitution guarantees every American... Read More

Whats Right About Nebraska: How the Democrats Lost the Heart of American Populism

(Note: This article was written slightly before the 2004 election;... Read More

The Macedonian Lottery

Every conflict has its economic moments and dimensions. The current... Read More

Open Source and Post-Capitalistic Society

Capitalism as the social structure was founded in order to... Read More

Prison Abuses on Good Muslims

Well we have certainly been reading a lot about prison... Read More

Common Sense vs. Common Senseless - How Thomas Paine Can Be Applied To Modern Day; Part One

INTRODUCTIONPERHAPS the sentiments contained in the following pages, are not... Read More

Economic Free Zones in Macedonia

Question: Dr. Vaknin ? is it true that you are... Read More

California Mutual Assistance Program

In years past California Mutual Assistance Program and emergency response... Read More

Population Control and Water Supply Issues

As we increase our populations every new soul will require... Read More

From Democracy to Omniocracy

Clint Eastwood recently plunged into the murky political pond with... Read More

Is it just hubris, or ...?

In what the Americans love to describe as the war... Read More

Dole, Kemp, Trusting People

Many in the peanut gallery of society are so quick... Read More

Union Members Don t Be Fooled, Conservative Talkers Have it in for You

Ever wonder why labor unions consistently endorse democrats over republicans... Read More

Army recovers terrorists? bodies from avalanche-hit areas in South Kashmir

As the death toll in the avalanche-hit Jammu and Kashmir... Read More

Sweet Lies, The Aspartame Issue

Aspartame activists are constantly being attacked because all data are... Read More

The Glorious Acts of Our Legislature

I always have to remember to take a deep breath... Read More

Doorstops and Paperweights

Ted Stevens (R-Alaska), chairman of the Senate Commerce Committee, has... Read More