Relief may come in November
Everybody knows that fuel prices are sky-high. These increases inflate the price of every single product that we purchase. Other than locally-grown vegetables, every consumable that comes into our homes has ridden on an eighteen-wheeler at least once, and often more than once. Diesel has now topped $4.00 a gallon, inflating the price of everything from the produce aisle to the dairy section.
What if consumers are paying more than their fair share of the additional fuel costs? What if the brokers who schedule trucks are up-charging the shippers, then pocketing the additional funds and requiring truckers to fund the difference? What if truckers cannot take it anymore?
On April 1st, 250 trucks crawled up I-75 from Macon to Atlanta at 20 mph. The cause of the congestion was not road construction or a traffic accident, and it certainly was not an April Fool’s joke. The owner/operators were staging a public protest against high fuel prices and tight-lipped brokers who refuse to tell truckers what they’re charging shippers for fuel.
Most of us consider the high fuel prices an unfortunate side-effect of the Iraq war, or just a part of life. We continue filling our gas tanks and driving to the places we need to go. With a helpless shrug, we assume that nothing can be done.
Diesel is cheaper to produce than gasoline. Yet diesel now sells for about 70 cents per gallon more than gasoline. Only in the United States is diesel higher than gasoline. This contradiction is very telling. From a conservation point of view, it is disastrous. The disparate fuel prices reward frivolous oil use while punishing necessary industrial oil use. Part of the price difference is the 25-cent higher federal fuel tax, but most of it is simply excessive profit saddled onto a captive customer.
Truckers are a captive customer because they have no options. They cannot choose to drive fewer miles to make up for fuel inflation. They cannot select a lower, cheaper grade like gasoline users can. They cannot carpool or use public transportation instead of filling their fuel tanks. Any drop in consumption means a pay cut.
Their livelihood is tied directly to the fluctuations of oil prices. In a free market economy, you would think that increases or savings would simply be passed along to the customer. According to the truckers, it does not happen that way.
Independent owner/operators rely on brokers who link trucks with loads. The brokers charge the shippers a fuel surcharge, which is rolled into the product price along with other freight costs. However, many brokers refuse to disclose their fuel surcharge to the truckers. Although they charge the shipper more money to cover diesel price increases, only a portion of that fuel surcharge is passed along to the actual truck driver who must purchase the fuel.
Since April 1, the truckers have been protesting the surcharge rip-off in a variety of ways. The slow parade from Macon to Atlanta is just one of hundreds of protests taking place all over the United States. Other truckers have parked their trucks, declaring that they will not carry another load until the government listens to their concerns and enacts legislation to protect them.
Alfred Teeters is an owner-operator based out of Chickamauga, Georgia. Teeters says he and his wife, who have been trucking for twenty years, have written numerous emails to US Rep. Jay Neal (R-GA), US Rep Nathan Deal (R-GA), and State Senator Jeff Mullis (R-Chickamauga.) Teeters says none of the three politicians even bothered to reply.
Independent truckers say the fuel prices and broker practices are driving them out of business. Truckers are losing their rigs. Some are losing their homes as well.
Meanwhile, the shortage of trucks on the road increases freight costs and constricts business, hurting all Americans.
How will the protest rectify this situation? The truckers hope that they can get the attention of the public, who will then apply pressure to governors, lawmakers and the President.
What exactly are the truckers demanding? The laundry list looks something like this:
Suspension of all federal and state fuel taxes until the economy recovers.
Creation of a federal oversight committee to regulate insurance premiums on Class 8 truck insurance.
Prohibition of self insurance for large trucking fleets, in order to level the playing field for smaller companies.
Federal regulations for brokers and shippers, properly enforced, with set maximums.
Standardized safety violation fines from coast to coast.
No major trucking companies are backing the protest. The Teamsters union and the Owner-Operator Independent Drivers Association deny organizing the protest. The association is legally prohibited from calling for a strike, because it is listed as a trade association.
Oil company executives say they sympathize with consumers regarding the high fuel price, but that they are not to blame. They claim their profits are in line with other industries. Oil profits hit another all-time high last year, totaling about $123 billion.
How long must we tolerate an economic structure that leaves us at the mercy of the oil barons? The answer may be “Only until November.” Democratic presidential candidates have unveiled detailed plans to reduce American’s dependence on foreign oil, provide stimulus for the alternative energy industry, and put bring Iraq’s oil industry back online. Hillary Clinton also wants to curtail the excessive oil profits, redirecting some of that money to fund energy research and create more jobs.
Of course, there are some voters who just do not mind paying such exorbitant prices for gasoline. They don’t care if truck drivers must pay $1,600 a week for diesel to keep their trucks on the road. They don’t mind paying $5.00 or $6.00 a gallon for milk. Those voters may try to put McCain in office.
A vote for McCain is a vote for the oil barons. A vote for McCain is a vote to escalate war in the Middle East, expanding the fighting from Afghanistan and Iraq to Iran and other areas for “a hundred years.” A vote for McCain is a vote to continue the manufactured oil shortage. A vote for McCain is a vote to put more and more truckers out of business. A vote for McCain is a vote to strangle the American economy.
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2 comments:
Another winner of a blog article. Meant to say so sooner.
As usual, I'm a day late and a dollar short: Yesterday was "Blogger Appreciation Day," or so I was told. My intention was to comment at each blog on my Bloglines subscription, but you know where the road paved with good intentions leads...
So here's a note to let you know that I appreciate you and your writing, Jeannie. Thanks for blogging.
Despite the news decrying a 20% increase in prices for food ect... I rarely see it when I book loads. The sooner the american populas, shippers, congress, ect... learns that truck Brokers are keeping between 30% to 60% of what the shipper is paying for themselves the better. Lanstar did 26 billion in 2007 with only 800 employees (brokers that take load from the shipper and broker it to a truck over the phone), but do not own trucks, pay for fuel, pay insurance, buy tires (300 bucks each time 18 times time two again)... that is alot of shaving off the top and it is affecting every industy, manufacture, and 300 million american becasue 87% of all goods are shipped by truck, and the freight broker are keeping most of it for themselves while the amermican public and american truckers suffer. Stop blaming the oil industry, they do not set the price for their product... start blaming the truck brokers... they do set their profit marging. I would love to see Lanstar, CH Roberson, and Yellow freight in front of congress explaining how they justify the money they shave off every single load booked in this 650 billion dollar ind.
It is late July 08, and as I call on loads from brokers, the majority of them are trying to pawn off loads for $1.30 to 1.60 per mile in the Southeast areas like Atlanta ga, Sc, and NC. That is lower than last year, and I am sorry, but on Wed I booked no loads for my 12 trucks because of this. I, like many that know how to run a business will not take cheap freight, and for the smucks that are taking these loads, your probably the same sorts of drivers that steal fuel and tires and are two months behind on your insurance and house payment... so to you smucks...keep up the good work, you will be out of business soon making the rates even higher. I love the high fuel prices, it is eliminating the competition (well the smuck competition). I cannot do that with merely 12 trucks, but the economy and high fuel prices are doing it for me. I hope fuel goes to $10.00 a gallon because I will not take a load that does not justify my overhead and give me a resonable profit. But their are so many smucks that do, and I cannot wait until they are all gone and out of the busienss... viva la high fuel prices!!!! The law of nature is survial of the fittest! Only the strong and wise will survive these days of high fuel prices.
Paul
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