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Jul 28, 2017

TRUCKING COST INCREASE * Australia - Cause: Port monopoly

* Victoria - Port monopoly pains for drivers


--- Port carriers say they are suffering under shrinking profit margins following the introduction of a number of new fees this year... Last month a shock surcharge from Patrick Terminals struck another blow to the back pockets of port road freight operators, many of whom were also hit with the introduction of an infrastructure charge from operator DP World in April... The pressure has pushed some operators to a boiling point, who have described the conditions at the ports as a virtual monopoly... Both DP World and Patrick operate in every major city apart from Adelaide, competing only with Hutchinson - a point that was acknowledged last year by ACCC chairman Rod Sims during a keynote address to the Ports Australia Conference in Melbourne in November... Mr Sims said appropriate regulatory regimes should be in place before assets with monopoly characteristics were privatised... 
(Photo by Kirstin Payne - COST INCREASE: Port carriers are facing another charge for each container on top of infrastructure fees)   --   Melbourne, VIC, Australia - Big Rigs, by Kirstin Payne - 21st Jul 2017


 * ACT - ACCC must step in on tolls and ports says ATA

--- Australia's competition watchdog, the ACCC, should take over regulating toll road and landside port charges, the Chief Executive of the ATA, Ben Maguire, said today... The Australian Government is considering setting up an independent regulator to control truck and bus registration charges and the road user charge that truck and bus operators pay on fuel... Mr Maguire said the independent regulator - ultimately the ACCC - should be responsible for toll road and landside port charges as well... Mr Maguire said governments must start the reform process by fixing the overcharging of truck and bus operators. "Truck and bus operators will be overcharged by $264.8 million in 2017-18. The meter is ticking up by more than $725,000 per day," he said... 
Canberra, Australia´s Capitol Territory, Australia - Big Rigs - 28 July 2017

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Mar 27, 2017

TRUCKING COSTS * USA: Reducing the burdens of the Affordable Care Act

* DC - Trump greets truckers in effort to rewrite health-care law

(President Donald Trump: I've forgot my CDL !!! and ... where h.... it's the ELD in this cart ... ??? - Photo by Jim Lo Scalzo / European Pressphoto Agency)  

--- The industry group, American Trucking Associations, says the Affordable Care Act has saddled trucking companies with extra costs and burdens... President Donald Trump met with trucking executives and drivers at the White House, as he sought to rally support for the House Republican effort to replace the Affordable Care Act, which he said had “inflicted great pain on American truckers” ... Mr. Trump and Vice President Mike Pence greeted members of the American Trucking Associations, an industry group that supports replacing the law, in a sun-splashed gathering alongside two colorful big rigs parked outside the White House... The ATA says the Affordable Care Act has saddled trucking companies, especially smaller firms, with extra costs, liabilities and administrative burdens. Replacing the law would lower insurance premiums and reduce those burdens... Truck driving is a dangerous profession. In 2015, 745 drivers of heavy trucks were killed on the job, the most of any single occupation, according to the U.S. Bureau of Labor Statistics. Drivers also contend with many health problems that result from spending long hours behind the wheel... Norita Taylor, a spokeswoman for the Owner-Operator Independent Drivers Association, which represents smaller truckers, said health-care costs are just one of many expenses the group’s members face...
Washington, DC, USA - The WSJ, by JENNIFER SMITH - March 23, 2017

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Sep 29, 2016

TRUCKER COSTS more than FUEL * USA: ATRI study 2015

* Virginia - Driver costs now higher than fuel costs, says ATRI

--- The American Transportation Research Institute (ATRI) says due to lower fuel prices, the trucking industry’s operational costs declined in 2015... Releasing the findings from the 2016 update to ‘An Analysis of the Operational Costs of Trucking", the ATRI said the average marginal cost per mile in 2015 was US$1.59, a 6% decrease from the US$1.70 in 2014... In addition to lower fuel prices, the decline in marginal cost per mile was attributed to a softening in the US economy late 2015. And, for the first time, driver costs represent a higher percentage of overall costs than fuel... 
Arlington, VA, USA - Truck News - September 26, 2016

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Oct 2, 2015

TRUCKING COSTS * USA: Fuel, largest marginal one

* Virginia - Equipment, driver pay push operating costs higher, ATRI analysis says


-- Fuel now consistently represents the largest share of total average marginal cost for motor carriers, followed by driver wages and equipment lease or purchase payments... Driver benefits, repair and maintenance, insurance premiums, permits and licenses, tires, and toll costs have each consistently represented 10 percent or less of average total marginal costs throughout the seven years of this research... Falling fuel prices weren’t enough to offset more expensive equipment and driver pay increases, so the cost of trucking rose again last year, according to latest benchmarking report from the American Transportation Research Institute (ATRI)... Released Tuesday, the 2015 update to An Analysis of the Operational Costs of Trucking puts the average marginal cost per mile in 2014 at $1.703, about 3 cents higher than 2013. And the upward trend is expected to continue... 
(Image: Share of Total Average Marginal Cost, 2008-2014)  --   Arlington, VA, USA - Fleet Owner, by Kevin Jones - Sep 29, 2015

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Jul 3, 2015

TRUCKING COSTS * Australia - Pay rates increase, too registration fees

* ACT - New financial year means more money for employee drivers and higher registration fees for operators


-- Employee truck drivers will begin to receive a pay increase from this week, while trucking owners will need to scrape around for extra cash to cover higher vehicle registration fees... The start of the new financial year means a 2.5 per cent wage increase for drivers employed under an Award such as the Road Transport and Distribution Award or the Road Transport (Long Distance Operations) Award... For employees not on an award or an enterprise agreement, the national minimum wage for a full-time adult employee is now $17.29 an hour, or $656.90 a week... Meanwhile, heavy vehicle registration fees throughout Australia have risen by 0.6 per cent... The Federal Government has not increased the fuel excise, recently announcing it would stay frozen at 26.14 cents per litre for the 2015-2016 financial year... The Fair Work Ombudsman (FWO) has reminded employers about the wage increases and says they need to check the rates applicable to their workplace... 
Canberra, ACT, Australia - Owner Driver - 2 July 2015

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Feb 3, 2012

TRUCKING COSTS * Canada

* Ground transportation costs rise for ninth consecutive month

Toronto,ONT,CAN -Truck News -Jan 27, 2012: --  The cost of ground transportation for Canadian shippers increased 1.6% in November when compared with October results, according to the latest figures from the Canadian General Freight Index (CGFI). The results represent the ninth consecutive monthly increase since March. During this time, the CGFI has risen 7.1% in aggregate...  The Base Rate Index, which excludes the impact of accessorial charges assessed by carriers increased by a modest 0.4% in November versus October. Since March, base rates have risen 4.3% in aggregate... Officials say an increase in fuel surcharges assessed by carriers is the primary reason why total costs are increasing at a faster rate than base rates. In November, fuel surcharges assessed by carriers equated to 20.86% of base rates, up from 18.79% in March...

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Jan 25, 2012

TRUCKING PROGNOSIS * Europe

* Belgium - Hauliers risk collapse from lack of fuel efficiency

Brussels,Belgium -Commercial Motor, by Christopher Walton -25 January 2012: -- One-in-seven haulage and logistics firms throughout Europe believe they will go out of business within eight years unless action is taken to improve fuel efficiency... According to a survey of 400 fleet and transport managers conducted by Goodyear Dunlop, operators are struggling to keep up with EU emissions regulations and lack funds to invest in fuel-efficient technology...  The survey also found that some operators were already stretched to their limits by the European Commission's target of a 20% reduction in CO2 by 2020. More than half (52%) of respondents said their vehicle parc could not achieve CO2 reductions of more that 10%...  Geoff Dunning, Road Haulage Association chief executive, says the pressure for action over emissions will only increase, but it was up to operators' customers to pay for the carbon cost as much as the transport cost...

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Dec 22, 2011

TRUCKING COSTS * UK

* UK - Vehicle operating costs track ahead of inflation says FTA

London,EN,UK -HGVUK -December, 2011:  --  The high cost of fuel remains the biggest cause for concern amongst haulage operators, who are continuing to be squeezed by rising operating costs and pressure for earlier payment terms from suppliers, whilst facing downward pressure on haulage rates and lengthening payment terms from customers...  The October 2011 update report of the Freight Transport Association’s Manager’s Guide to Distribution Costs 2011 calculates that, on average, vehicle operating costs for rigid, articulated and drawbar vehicles have risen by 6.2 per cent in the year to 1 October 2011 to reach an all-time high. The largest contribution to the rise came from an increase in the price of diesel, which has risen by 13.9 per cent in the year to 1 October 2011. In addition, tyre costs have risen by 8.3 per cent and overheads by 5.6 per cent in the same period...  In contrast, increases in haulage rates have not matched the rise in operating costs. According to calculations in the update, domestic haulage rates have risen by an average of just 2.8 per cent in the nine months to 1 October 2011 and international haulage rates have risen by an average of just 1.6 per cent in the same period. Forty-five per cent of the contributors to the update indicated that they had not increased their haulage rates since the start of 2011...

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Dec 7, 2011

TRUCKING COSTS * UK

* Driver training is most used measure to reduce fuel bills

London,EN,UK -Commercial Motor (UK), by Justin Stanton -1 December 2011:  --  Driver training is the most popular measure by which operators attempt to reduce fuel bills, according to a Commercial Motor survey in association with MobilDelvac...  More than 100 truck operators took part in the survey and half revealed that fuel had risen in price by more than 10% in the past year; a further 14% had experienced a fuel price increase of more than 20%, while 5% suffered increases of more than 30%...  However some 84% of respondents use driver training to reduce fuel consumption but take-up of other fuel consumption-reducing measures is indifferent, with sourcing the best fuel and optimising tyre pressures being the only other measures to be used by more than half respondents (at 56% and 54% respectively)...  The survey found that price is the dominant criteria by which operators purchase engine oil (56%), although an oil's impact on fuel economy was recognised by 37%. Engine protection was important for a third, while brand mattered to just a quarter...

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Oct 10, 2011

TRUCKING COSTS * UK - Truckers at fuel duty disadvantage

Fuel bought on the other side of the Channel is staggering 220-plus miles

London,EN,UK -HGV Ireland -October 7, 2011: -- Foreign truckers get more mileage for their money thanks to the disproportionately high rate of fuel duty imposed by the Government on UK hauliers, according to the Freight Transport Association (FTA)... The FTA says that £1,000 of diesel bought at a forecourt in Europe will take a typical heavy goods vehicle over 280 miles further than one that filled up at a forecourt in the UK. That is the equivalent of travelling from Dover to Bedford and back...   Even if one accounts for the fact that most UK hauliers buy their fuel in bulk, the extra mileage achieved by a foreign truck carrying £1,000 of fuel bought on the other side of the Channel is still a staggering 220-plus miles. Such stark fuel price disparity is putting domestic hauliers under increasing pressure to compete...

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Sep 13, 2011

TRUCKING COSTS * UK - Transport firms increasingly turning down work due to high price of fuel

(Photo:  A small independent filling station in Boston Spa, West Yorkshire. Stations like these in the United Kingdom are becoming rarer)
London,EN,UK -Road Transport, by Ben Thornton-Harwood -12 September 2011: -- More than a third (35%) of transport businesses are being forced to turn down work due to increasing fuel costs, according to a survey...  In a poll of 1,480 operators, undertaken by the Fuelcard Company, 528 said rising fuel costs were leaving jobs unprofitable, with some having to turn down work on a daily basis as a consequence...  Some hauliers admitted up to a 15% loss of income due to the escalation in fuel prices, with all those questioned in agreement that the ongoing price hikes are crippling the industry...   * Sign today: the FairFuelUK e-petition has now reached 81,497 signatures but needs to make the 100,000 mark to get the high cost of fuel debated in parliament...


* USA - Uninsured: One In Seven U.S. Drivers Cost The Rest Of Us

(Photo from LawMatters)
Washington,DC,USA -The Car Connection -12 Sept 2011: -- In a frail economy drivers have downsized, changed vehicles, and tried cut their fuel budget by limiting their driving... But there's one tempting solution that might just end up biting you hard in the end: Canceling your insurance...  More Americans this past year have been driving outside of the law. According to the Insurance Research Council's latest report, this past April, about 13.8 percent of U.S. motorists are without insurance. And the situation could be getting worse...  A survey from the National Association of Insurance Commissioners (NAIC) report, from earlier this summer, found that nearly one out of every five vehicle owners reported canceling or reducing their insurance coverage for immediate financial relief, while nearly 20 percent also reported trading in one of the household vehicles for a cheaper one, or getting ride of it completely...  You're also driving up rates for everyone else. According to data from the National Association of Insurance Commissioners, uninsured motorists cost the rest of us about $10.8 billion a year (based on 2007 data), a figure that's reflected for most of us in the "uninsured motorist coverage" portion of our premium notice—and possibly due to rise because of the trend... The U.S. rate of uninsured motorists fell from 2004 to 2007 and then spiked to nearly 15 percent in 2008, with the economic downturn...   Curiously, Americans aren't the only ones bucking the law and driving uninsured in droves; the Telegraph today reported that in some areas of Great Britain, nearly a third of motorists are driving uninsured...

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Feb 27, 2011

OIL NEWS * Canada - Fuel prices, cast anxiety over truckers

Halton,ONT,CAN -The Spec, by Danielle Wong -Feb 24, 2011:  ...   Alarming gas price increases are making drivers, business owners and civic leaders nervous as various pockets of Hamilton are taking the hit...  Shawn Kemp, the vice-president of operations for local delivery business PACEX Transportation Solutions, agreed Ottawa needed to step in and take the Canadian oil business off the world market...  The struggling trucking industry has only begun a slow climb towards recovery over the past two years, Kemp said, but the jump in fuel prices has him and other employees worried. “My concern is … it’s going to put us back in recession again,” he said. “It’s going to slow down business. As fuel prices go up, shipping volume goes down” ...  The immediate plan for their company is to transfer increased fuel prices to clients, until they refuse to absorb any more, at which point the company will have to take on the costs and see a drop in their profit margin, Kemp said...   Although Libya is a small player in the oil market, holding 5 per cent of the world’s proven reserves, it cannot be dismissed because the market is very thin, said McMaster University economics professor Atif Kubursi...


* USA - Open access to domestic energy sources, ATA tells Obama


Arlington,VA,USA -The Trucker News Services -25 Feb 2011:  --  With world events showing the importance of energy independence, the American Trucking Associations called on the Obama administration to stop blocking access to U.S.-held energy assets...  “The trucking industry requires more than 34 billion gallons of diesel fuel to deliver essential commodities like food, medicine, clothing and fuel,” ATA Vice President and Regulatory Affairs Counsel Rich Moskowitz said Feb. 24. “Despite advances in alternative energy, the trucking industry will continue to depend on traditional diesel fuel for the foreseeable future”  ...  Moskowitz said, “Rising fuel prices hurt truckers twice - first by increasing their operating costs and then by reducing freight volumes as consumers spend more on energy and are forced to reduce their spending on other consumer goods” ... In 2010, the trucking industry spent an estimated $101.5 billion on diesel fuel – a 28 percent increase over the previous year. Before the current spike in crude oil prices, ATA estimated that in 2011 carriers will spend roughly $20 billion more at the pump than they did last year...


* USA - Tapping Alaska


Charlotte,NC,USA -Portfolio -Feb 25 2011: -- Gasoline prices already were high for this time of year, but the disruption of Libyan oil exports has caused the average price of regular gasoline in the U.S. to jump nearly 12 cents in the past three days, to $3.29 a gallon... That’s according to AAA’s daily survey of prices at the pump... As the weather warms and Americans drive more, that price could creep up to $4 a gallon, or beyond, depending on what happens to world oil supplies... These higher gasoline prices will squeeze both consumers, who will have less money to buy other goods and services, and businesses, who will try to pass along their additional transportation costs to their customers. That’s not what a still-recovering economy needs... The oil shocks of the past week have prompted many business groups to call for increased oil production in the U.S... Yesterday, the Energy Security Leadership Council, a group co-chaired by FedEx chairman and CEO Fred Smith, renewed its call for increased domestic oil production. Dependence on foreign sources of petroleum poses both an economic risk and a national security risk to the country, the council maintains... Said Emilie Siurrusco, the Alaska Wilderness League's communications director, "... plus, increasing domestic production of oil might not lead to lower gasoline prices, she said. Oil produced in the U.S. goes into the world oil market, and Saudi Arabia could ramp down its production as we ramp up ours in order to keep prices high..." (Photo from The Trucker, by BARB KAMPBELL)


* USA - Truck Drivers Pain At the Pump Also Hurts Your Wallet


(Video: Gas Prices Soar For Truckers on the Road - Pulling up to a gas station seems to be getting more expensive by the minute. But the ones who are affected the most are those with the biggest rigs on the road)

Spartanburg,NC,USA -News Channel 9, by Christine Scarpelli -February 27, 2011: -- Pulling up to a gas station seems to be getting more expensive by the minute. The national average gas price Is $3.35 a gallon. That's up 2 cents from last night and nearly 20 cents from last week. In South Carolina gas averages $3.23 per gallon. That's the ninth cheapest in the U.S. and in North Carolina the average gas price is closer to the national average at $3.33 a gallon... But the ones who are affected the most are those with the biggest rigs on the road. Diesel prices have jumped up just as much as regular fuel and the trucking industry is feeling the pinch as well... Drivers we talked to said they've seen prices skyrocket and it's getting expensive for everyone involved...  They say their companies are taking drastic measures to keep their wheels spinning... One driver said his company limits where they can go and even restricts the speedometer on their trucks so they can't drive faster than 60 miles per hour and in some cases it’s even affecting drivers pay...  The drivers we talked to say South Carolina is on the lower end when it comes to fuel prices but economists say they expect things to get worse in the next few months...


* UK - RHA warns on spiralling fuel prices

London,UK -HGV UK -February 28, 2011: -- UK motorists have a problem with fuel prices – but the problem is many times greater for transport firms, warns the Road Haulage Association (RHA)... The cost of running a typical 44-tonne lorry has risen by £410 a year in just one week, the RHA says. Diesel price hikes over the past four weeks totalling 2.41 pence mean that haulage firms typically have to raise their charges £1,000 a year, just to cover their increased fuel costs. The exact amount could be much higher, depending on the type of work the truck is doing... The figures are based on the RHA’s Weekly Fuel Price Survey, which shows what haulage firms are actually paying for their fuel excluding VAT. The bulk price released today was 110.46 pence per litre (exc VAT), up 0.98 pence on one week ago. Clearly, there are worries that prices are going to rise even further...

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Jan 8, 2011

TRUCKING COSTS * USA - LA Harbor Commission Closes Clean-Truck Loopholes

Port bans tricks by some motor carriers that circumvent regulations

Los Angeles,CAL,USA -The Journal of Commerce Online, by Bill Mongelluzzo -Dec 16, 2010: -- The Los Angeles Harbor Commission Thursday voted to prohibit two practices some motor carriers deploy to circumvent the port's clean-truck regulations... Class 7 trucks will now be governed by the same clean-air rules that apply to the larger Class 8 trucks... Also, the commission modified its tariff so that switching containers from compliant trucks to banned trucks is banned anywhere in the harbor district. This practice is known as dray-off... The California Air Resources Board, whose regulations apply throughout the state, is scheduled on Dec. 16 to consider amending its Drayage Truck Rule to include regulation of Class 7 trucks and to address the dray-off issue... (Photo from wantai.net: Class 7 Fuso truck)


* California - Truckers say L.A.'s 'green' port costs them money. The dispute over who should pay for leasing and maintaining 'clean' rigs could go to the Supreme Court

Los Angeles,CAL,USA - The Los Angeles Times, by Patrick J. McDonnell -December 7, 2010: -- Alex Mejia said he often sleeps in his truck, grabbing some fitful rest before a new dawn breaks and he is once again hauling cargo at the Port of Los Angeles. The routine marks another working day that, he says, could last 18 hours, much of it spent waiting — for a job order, a load, an operational trailer chassis — before getting back on the road... He is among about 10,000 drivers who provide a lifeline at the nation's busiest port complex, hauling containers from the seaport to far-flung warehouses and distribution centers for clients ranging from small firms to giants such as Wal-Mart, Costco and Rite Aid. Many say they have long endured extended hours, high stress and relatively low pay, even in the days when business boomed with galloping multibillion-dollar commerce with Asia... Life was supposed to get better for them with the coming of the city's much-ballyhooed Clean Truck Program, which is widely credited with helping to upgrade air quality... The concept — to replace smog-spawning clunkers with newer and cleaner rigs — promised to slash emissions and offer a new deal for beleaguered port truckers, many of them immigrants from Mexico and Central America... "Things were ba enough when we owned our trucks, but I would say the situation is desperate now," said Mejia, who ditched his 1995 Freightliner and now leases a "clean" 2008 International. "We're all happy that the air is cleaner. We live here too. But it is our sweat, our work, that is helping to improve the environment" ... "This program has been a great deception to us," said Jose Mauricio Guzman, 54, who has more than 20 years of port trucking experience. "We no longer have hope to be in the middle class. We are all poor now"...

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Mar 5, 2010

TRUCKING COSTS * Canada - Freight carriers' group urges rate hike close to 5%

Fort Erie,ONT,CAN -Today's Trucking -1 March 2010: -- Despite the trucking industry’s cost cutting measures during this recession, fixed and variable costs continue to rise and carriers should be looking for raises of at least 4.9 percent this spring... That's the latest recommendation from the Tariff Advisory Committee (TAC) of the Freight Carriers Association, which monitors economic conditions affecting the industry’s profitability and issues rate recommendations, suggests the increase should take effect by March 29, 2010... "Declining volumes and fierce competition has forced industry earnings well below acceptable levels. The industry is not generating sufficient income to re-invest in their businesses," FCA stated in a press release... Especially hard hit are equipment costs, which will rise dramatically due to the new U.S. EPA standards for the 2010... The general analysis could easily apply to most Canadian fleets facing cost and pricing pressures... (Photo from hankstruckpictures, by Martin Phippard: Kenworth W-900 B-Train tanks taken along the Trans Canada Highway in BC)


* Increased ferry rates could sink truckers

Victoria,BC,Canada -Today's Trucking -5 March 2010: -- Rate increases from B.C. Ferries that are scheduled to kick in on April 1 have local truckers concerned about being able to keep up... The rate for commercial vehicles will increase by 20 cents a foot to $5.25 for main routes like Horseshoe Bay-Departure Bay and Duke Point-Tsawwassen, which connect Vancouver Island with the mainland... Dennis Frith, the owner of Blueboy Express, told local media that trucking companies like his Victoria-based firm are already facing difficulties... Frith said the increase will force him to downsize Blueboy Express for the second time in three years and that means laying off drivers and other staff members... (Photo from inglesyfrancesencanada: BC Ferries in Vancouver)


* Canada - CTA wants U.S. hazmat fee reconsidered

Ottawa,ONT,CAN -Today's Trucking -5 March 2010: -- Near the end of February, the Pipeline and Hazardous Materials Safety Administration (PHMSA) proposed a fee increase that didn’t sit well with the Canadian Trucking Alliance... PHMSA, a division of the U.S. Department of Transporation, wanted to increase the registration and fee assessment program for hazmat transporters by as much as $2,000. Carriers, including Canadian companies that haul certain categories and quantities of hazardous materials, could see the annual fee rise to $2,975 (plus a $25 administrative fee) from $975 for registration years beginning in 2010-2011... The fee increase would go towards funding the national Hazardous Materials Emergency Preparedness (HMEP) grants program... In a letter to the U.S. DOT, the Canadian Trucking Alliance urged the PHMSA to review the proposed increase... CTA reiterated the importance of funding safety and environmental initiatives such as the HMEP, but questioned the application and level of need for the proposed increase... (Photo from leestrucking.com: Lee's Trucking hazmat truck)

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Nov 14, 2009

TRUCKING COSTS * Argentine - Truckers’ wage hike to be discussed today

City Buenos Aires,CF,ARG -The Buenos Aires Herald (PREVIOUS SUBSCRIPTION) -13 Nov 2009: ... trucking chambers grouped under the FADEEAC federation are scheduled to meet in Rosario today to discuss a 25-percent wage increase demanded by the truck drivers’ union under the framework of wage bargaining. Trucking company owners will also look into the ... (Photo from buenosairesherald)

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Jun 5, 2009

TRUCKING COSTS * Canada - Truckers Seek Lower Border Costs

Fees weigh down competition, says Trucking Alliance executive

Ottawa,ONT,CAN -The Journal of Commerce Online, by John Gallagher -Jun 4, 2009: -- U.S. border crossing costs are putting a damper on the ability of Canadian trucking companies to compete in a domestic transportation market already struggling under a deep recession and growing trans-border carrier options from the United States, according to Canadian trucking interests... In testimony before the House of Commons Standing Committee on Agriculture and Agri-food, Ron Lennox, vice president of the Canadian Trucking Alliance pointed out that, as has been the case in the United States for the last two years, excess capacity and weak demand are giving shippers the upper hand at the negotiating table... “But the common thread running through all of these things is that government action is required to bring them to fruition so that the benefits can be realized by carriers and the customers they serve.”... (Picture from cbc.ca -w truck inspect)

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Mar 11, 2008

FREIGHT COSTS * UK - It's still expensive to run a truck in

The UK remains one of the most expensive places in Europe to run a 40-tonne truck

London,UK -Road Transport, by Roanna Avison/Commercial Motor -11 March 2008: -- ... according to research by Nera Economic Consulting and the Freight Transport Association. Operating costs including staffing, fuel, VED and insurance were taken into account... Taking the UK's costs as an indexed figure of 100, only the Netherlands has a higher figure - 101. Italy with 98 and Germany with 97 have similar running costs, while Ireland with 93, Poland with 77 and Hungary with 76 show the huge variation across Europe... The survey also considered employment costs alone, and again the UK was given an index of 100. Germany is the most expensive with 131, followed by the Netherlands with 132 and Italy with 106. Hungary and the Czech Republic are the cheapest with 39, followed by Poland with 54... The FTA plans to take the information to the government to show how the high price of fuel among other costs is making UK hauliers less competitive than their Continental counterparts...

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Mar 10, 2008

Tough life * USA - Costs catastrophic to truckers

Owner-operators now on the brink

Fort Myers,FL,USA -The News-Press, by Laura Ruane -March 9, 2008: -- ... The cost of diesel fuel has doubled over the last four years; other costs shouldered by owners of big tractor-trailer rigs also have soared. Prevailing rates, either by the mile or by the ton, have declined or at least not kept pace with increased costs... Across the nation, trucking's owner-operators - the self-employed drivers who haul everything from Hummers to hay - are suffering. Many say they're running on the edge of bankruptcy, about to disappear unless they get help... One of them was former Southwest Floridian Paul Caserto, who now works in construction in Louisiana. "I gave my truck back to the bank. There was no way I could make the payments"... The wave of trucking failures now under way might still be invisible to some people. When the economy rebounds, however, some experts believe the presence of fewer truckers will drive up shipping rates, and increase consumer prices... For now, the housing downturn and decreased consumer spending have cut into loads; too many trucks competing for less work pushes down freight rates... Without the independents, trucking will turn into a group of "regional and national oligopolies" that would send shipping prices higher when the economy improves, said John Saldanha, who teaches logistics at Ohio State University... For now, it's truckers who are feeling it... (Photo by Stephen Hayford/news-press.com - Winona Palmiotti, 34, of New York, gets into her semi, with her Chihuahua Chille, at Pilot east of Fort Myers. Palmiotti says rising fuel prices have changed everything about how she works. "Sitting in 100 degree heat, you can't idle," Palmiotti said. "It burns too much fuel.")

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Mar 9, 2008

Commercial Transportation COSTS * USA - Why Your Groceries Are Costing More

... The cost of commercial transportation...

USA -Burkhart's Blog, by Alan Burkhart -March 07, 2008: -- ... Having been in the trucking industry for three decades, this is something I'm qualified to talk about... A few years ago trucking companies large and small could make money hauling freight for about $1.20 per mile. This includes food items, paper goods, structural steel, agricultural products and pretty much whatever else you can think of. Fuel of course was a good bit cheaper during this period, averaging around two dollars per gallon. Modern commercial trucks generally get about six miles per gallon, which is a vast improvement over the 3.5 mpg back in the 70's when I started driving a truck. Six miles per gallon is an average, with some getting more and others getting less. The cost per mile for fuel at 6 mpg / $2 a gallon was thirty-three cents per mile... As of this writing, the national retail average price for a gallon of commercial diesel is $3.77. This average (AK and HI are not included) for 48 states translates to an average cost of sixty-three cents per mile - almost twice the cost as a few years ago... Add to this amount the driver's salary - a minimum of about 35 cents per mile with most companies paying in the 40 - 45 cents per mile range and the cost per mile goes over a dollar. To that, add in the necessary per-mile computation for permits, insurance and truck / trailer registration. Registration for a commercial truck-tractor, by the way, costs $1000 to $1800 depending on where it's registered and a handful of other considerations... But we're not done yet. Now consider that freight revenue also has to pay the wages of mechanics, dispatchers and administrative personnel. Then allow for keeping the lights on and the water flowing, property taxes, facility maintenance and whatever other requirements an individual company may have... And did I mention tires? Depending on the type of tire (trailer, drive tire or steer tire), and the part of the country you're in when you buy them, truck tires cost anywhere from $280 to nearly $400 each. That translates to about $5000 to put new tires on an 18-wheeler, and truckers average about 120,000 miles per year. Tires don't last long... I work for a small company with 30 trucks. We don't leave the office these days for less than $1.75 per mile. If we work for less, we lose money. It's just that simple. In the practical sense, we need about $2 per mile to make it worthwhile. Look at it another way: At $1.20 per mile, the ton rate for a 44,000 pound load of freight is about five cents per mile. At $1.75 per mile, the ton rate increases to eight cents per mile...

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Feb 29, 2008

TRUCKING COSTS * Australia - Increased fees will hurt consumers

Canberra,Australia -ABC News -Feb 29, 2008: -- Trucks drivers have urged Australia's transport ministers to rethink proposed increases in registration fees and fuel tax when they meet in Canberra today... The increases have been recommended by the National Transport Commission to make sure the trucking industry pays its share of road maintenance... But chief executive of the Australian Trucking Association, Stuart St Clair, says any increase in costs for the industry would eventually be passed onto consumers through higher prices... He say the ministers should delay putting up the charges as part of efforts to fight inflation...



* Ramsey urges ministers to oppose trucking cost increases
Port Augusta,Australia -ABC North and West -February 28, 2008: -- The federal Member for Grey, which covers 92 per cent of South Australia, has called on national transport ministers to oppose increases to registration costs and fuel taxes for truck drivers... Transport ministers from across the country will meet in Sydney on Friday to discuss a plan to increase the costs... But Rowan Ramsey says people living in remote and rural areas would be hardest hit because nearly everything they buy has to be trucked in... He said, "As rural Australia is one of the biggest users of transport, you can be rest assured that it'll be us that'll be paying the bills and I don't think we need it"... (Video from YouTube, by gm16v149 -November 16, 2007: "Going thru the gears in a CAT V8 powered 80 ton road train" - Only watch this if you like big bore V8s and you've got good speakers with the volume cranked right up! Cab ride on the Nullarbor Plain in South Australia near the roadhouse. If you've ever wondered how long it takes to get up to speed @ 80 tons with 600 HP this will give you some idea. More vids to follow later. Please rate and comment!)

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