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.
US truck - California 2007
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 values are down -0.007 values are up 0.096
East Coast (PADD1) 4.052 4.092 4.096 values are up 0.004 values are up 0.162
  New England (PADD1A) 4.197 4.203 4.221 values are up 0.018 values are up 0.185
  Central Atlantic (PADD1B) 4.171 4.203 4.202 values are down -0.001 values are up 0.184
  Lower Atlantic (PADD1C) 3.935 3.990 3.994 values are up 0.004 values are up 0.132
Midwest (PADD2) 3.909 4.023 4.014 values are down -0.009 values are up 0.107
Gulf Coast (PADD3) 3.865 3.902 3.901 values are down -0.001 values are up 0.073
Rocky Mountain (PADD4) 4.059 4.057 3.989 values are down -0.068 values are down -0.046
West Coast (PADD5) 4.094 4.115 4.097 values are down -0.018 values are down -0.008
  West Coast less California 4.038 4.070 4.046 values are down -0.024 values are not available NA
  California 4.142 4.153 4.139 values are down -0.014 values are down -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?

texasMaybe 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 values are down -0.086 values are up 0.138
East Coast (PADD1) 4.128 4.108 4.036 values are down -0.072 values are up 0.150
  New England (PADD1A) 4.238 4.243 4.205 values are down -0.038 values are up 0.270
  Central Atlantic (PADD1B) 4.208 4.203 4.149 values are down -0.054 values are up 0.155
  Lower Atlantic (PADD1C) 4.047 4.011 3.921 values are down -0.090 values are up 0.085
Midwest (PADD2) 4.150 4.101 3.984 values are down -0.117 values are up 0.118
Gulf Coast (PADD3) 4.022 3.999 3.945 values are down -0.054 values are up 0.137
Rocky Mountain (PADD4) 4.268 4.243 4.195 values are down -0.048 values are up 0.236
West Coast (PADD5) 4.346 4.298 4.187 values are down -0.111 values are up 0.080
  West Coast less California 4.238 4.195 4.092 values are down -0.103 values are not available NA
  California 4.437 4.385 4.268 values are down -0.117 values are up 0.105

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

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