Truckit: 2012

Will Trucking Pay The Price For The Fiscal Cliff?

I am not sure whether the fiscal cliff is political propaganda or is a real threat to the economy and the lifeblood of his economy, the trucking industry. I know both parties have been known to drag these out and the Federal government has gone unfunded for a few weeks.

The Fiscal Cliff? (Photo credit: Wikipedia)

That is political posturing that gets publicity. Letting the entire economy go down the toilet to prove their point is unacceptable. I have featured this topic on a couple of other blog posts which I will link here.

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Fill up that Truck Quick...

The Mysterious Drop In Fuel Prices

Traditionally the price of fuel goes up before an election and mysteriously tapers down after an election. This time fuel continued to go down. Then it went up which was typical. Now it has dropped again so I am not totally sure why.

According to Transport Topics it has gone down 50 cents since early Fall. While gas is higher in the Northeast due to Sandy, it is very odd that it has continued its drop. Some possibilities

Weak demand due to cutbacks by consumers
Reduced volume by shippers and manufacturers

Who knows? I will enjoy it while it lasts. Go fill up your truck!

U.S. On-Highway Diesel Fuel Prices* (dollars per gallon)
				Change from
	11/19/12	11/26/12	12/03/12	week ago	year ago
U.S.	3.976	4.034	4.027	-0.007	0.096
East Coast (PADD1)	4.052	4.092	4.096	0.004	0.162
New England (PADD1A)	4.197	4.203	4.221	0.018	0.185
Central Atlantic (PADD1B)	4.171	4.203	4.202	-0.001	0.184
Lower Atlantic (PADD1C)	3.935	3.990	3.994	0.004	0.132
Midwest (PADD2)	3.909	4.023	4.014	-0.009	0.107
Gulf Coast (PADD3)	3.865	3.902	3.901	-0.001	0.073
Rocky Mountain (PADD4)	4.059	4.057	3.989	-0.068	-0.046
West Coast (PADD5)	4.094	4.115	4.097	-0.018	-0.008
West Coast less California	4.038	4.070	4.046	-0.024	NA
California	4.142	4.153	4.139	-0.014	-0.033

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The Trucker Autobahn

Tractor Trailers Going 85 MPH On The Highway:

What Could Possibly Go Wrong..

This news story has creeped up on us in the Transportation field. It is not one of those regular themes that keeps getting circulated in our industry news sources. Upon second glance though, maybe it should be. I mean the idea of the Texas Superhighway really should capture our attention. Heck, we are Americans. We love big cars. We love to go fast right?

Maybe the biggest problem here is the timing. Lets take a look at why:

We have spent 4 years in a transportation "police" state with billions of dollars of regulation levied on the transportation industry

The price of fuel continues to go up and one of the fastest ways to burn more fuel is to ....go faster

There has been an explosion in new safety rules and regulations for commercial vehicles from The Department of Transportation

I mean it bucks the trend. The image of the highway system is one of highways backed up for miles. Inspection stations that electronically talk so that the public is safe from the "big bad trucker" blazing down the road in their fuel guzzlers while the rest of us putt along in their wake.

But here is an open road where you can legally roar by at high speed. Forget that higher speed means more fatalities, your getting somewhere faster. Maybe this could be a tourist attraction. Just like visiting a water park you could visit the Lone Star Autobahn and go really really fast.

Think about it: no one ever drives the speed limit. So if the limit is 85 you can go at least 90 without getting a ticket, probably even a 100. There will be some that speed no matter what. I bet you could get up to 105 or 110 before you get pulled.

What could possibly go wrong with cars and multi ton trucks going over 100 miles per hour on road?

http://rumors.automobilemag.com/new-texas-toll-road-has-85-mph-speed-limit-good-idea-169147.html

http://www.sacbee.com/2012/09/10/4806353/new-lone-star-state-speed-limit.html

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Diesel Drops Again

Diesel Prices Still Low Despite The Wrath of Sandy

I cannot say the election has not had anything to do with this but I say enjoy it while it lasts. Despite fuel shortages in the Northeast diesel prices dropped again. After Tuesday all bets are off as to whether diesel will continue to drop.

				Change from
	10/15/12	10/22/12	10/29/12	week ago	year ago
U.S.	4.150	4.116	4.030	-0.086	0.138
East Coast (PADD1)	4.128	4.108	4.036	-0.072	0.150
New England (PADD1A)	4.238	4.243	4.205	-0.038	0.270
Central Atlantic (PADD1B)	4.208	4.203	4.149	-0.054	0.155
Lower Atlantic (PADD1C)	4.047	4.011	3.921	-0.090	0.085
Midwest (PADD2)	4.150	4.101	3.984	-0.117	0.118
Gulf Coast (PADD3)	4.022	3.999	3.945	-0.054	0.137
Rocky Mountain (PADD4)	4.268	4.243	4.195	-0.048	0.236
West Coast (PADD5)	4.346	4.298	4.187	-0.111	0.080
West Coast less California	4.238	4.195	4.092	-0.103	NA
California	4.437	4.385	4.268	-0.117	0.105

http://www.overdriveonline.com/sandy-hasnt-affected-diesel-prices-reports-say/
http://www.eia.gov/petroleum/gasdiesel/

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