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Trucking Industry Continues Call for Action on Fuel Crisis

02/22/2000 16:55:00

ALEXANDRIA, Va., Feb. 22 /PRNewswire/ -- The American Trucking Associations (ATA) today renewed its call for emergency government action to halt the diesel fuel price crisis that is threatening the trucking industry and its ability to deliver goods to consumers and businesses across the U.S.

ATA President and CEO Walter B. McCormick, Jr., said: "Today, more than 70% of our communities rely solely on trucks to deliver their goods. Simply put, if trucking breaks down, so does the U.S. economy. I firmly believe that if the transportation backbone of this country is allowed to snap, then this historic U.S. economic expansion will be running on fumes."

McCormick, who will deliver the trucking industry's concerns in testimony before the U.S. Senate Committee on Energy and Natural Resources on Thursday, February 24, said the price of fuel is the "Achilles heel" for the industry. He said, "A key reason trucking is the dominant mode of transportation in this country is because it is affordable. And, we are affordable because of razor- thin profit margins of two to four percent. If that moves even slightly, many are forced out of business."

"Most trucking companies can't afford to absorb the diesel cost and don't have the ability in a highly competitive market to raise prices to cover the diesel costs. Out-of-control fuel prices -- such as this year's 53% increase from 1999 -- can quickly wipe out that margin."

The ATA President said motor carriers are asking for three actions by the federal government to end the fuel crisis. They include opening the Strategic Petroleum Reserve to help drive prices down, asking the U.S. Government to convince OPEC that stable and reasonable prices are in everyone's best interest, and requesting that the U.S. Attorney General commence an investigation into any illegal diesel price gouging and profiteering.

"We certainly understand the frustration of the hundreds of independent owner-operators who are demonstrating in front of the U.S. Capitol today. They are part of the 9.6 million taxpayers who work for the trucking industry and helped pay for the petroleum reserve." said McCormick. "We don't want to see this booming economy bust. Unfortunately, however, it is a real possibility that this crisis could be the big chill on a hot U.S. economy -- that the result could be inflation and recession if the Federal Government continues to sit back and watch." Copyright ) 1996-2000 layover.com.

-- Dee (T1Colt556@aol.com), February 23, 2000

Answers

Of course Fed.Gov will sit back and do nothing while all the independent truckers disappear. It just makes things better for large, ARKANSAS-based trucking firms to corner larger market shares.

Interesting coincidence, huh? I just hope that folks won't have to HUNT too hard to make the connection.

WW

-- Wildweasel (vtmldm@epix.net), February 23, 2000.

I make the connection, but even Hunt has to pay the fuel bills. What is it that you would like to see the gov't do that would give immediate relief? Remove the tax is a given, but what after that? Go to Iraq and beg? Venazuela and beg? Just what is it that you want? And don't be so hard on Hunt, Werner, Schnieder, to name a few. They keep their trucks in good condition, they don't exceed the speed limits and they take care of the drivers. At leat 75% of the independents could not qualify as Hunt drivers. My husband owned a fleet of trucks for 30 years. He will be the first to tell you that the big boys are where they are because they do it right. Too many independents are doing it on a shoe string and a fuel increase, PUCs, insurance rates go up, transmission goes out, tires need to be replaced, brakes are shot, caught with the "wrong" set of log books at the scale house.... and they are out of business. They are one step from losing their truck at all times. Their intentions are good,and they work hard. But the bulk of them go out of business within 2 years. I don't fault a guy for trying. But the game is TOUGH and you have to have some back up with some cash or you lose it all. Taz

-- Taz (Tassi123@aol.com), February 23, 2000.