FUEL COST CRISIS * Canada - Scary times for trucking industry
Diesel prices ‘totally out of hand’
Langton,ON,Canada -The Simcoe Reformer (Simcoe,ON), by Monte Sonnenberg -April 21, 2008: -- Local trucking firms have entered uncharted territory now that diesel fuel is holding steady in the range of $1.25 a litre... The cost of filling up a rig with a 300-gallon tank is nearly $1,600... Truckers have adopted a stock approach to the situation - a surcharge on rates that rises with the price of fuel. It adds up to a lot of pain for people in the trucking industry and the customers who rely on them... High diesel prices present challenges that the trucking industry has never seen. Labour, for example, is normally the industry’s highest input cost. But now fuel is rivalling that and sometimes exceeding it... As well, because of high fuel prices, local firms sometimes find it cheaper to put drivers up for the night in a nearby city than have them come home at the end of the day empty. If a next-day load is available at a destination, truckers are being asked to wait for it... Firms that have entered long-term contracts with big customers at fixed rates are also in trouble. No one six months ago could have imagined that diesel fuel would rise to $1.25 a litre and stay there...
Labels: fuel costs troubles
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