Ugly Ass Opinion

In a grassroots movement that’s becoming a grass fire, thousands of trucks are slated to shut down on Tuesday, April 1st to protest high fuel prices. (Nope, it’s not an April Fools joke–but I daresay the timing means somebody has a wicked sense of humor!)

I’m not a trucker, but I know a number of hard working folks who are. I’ve watched their formerly successful businesses decline rapidly over the past few years. As a consumer, this has me scared shitless very concerned.

You should be, too.

We all deal with high fuel prices. What makes truckers so special? The trucking industry hasn’t had a raise in 10 years, and they haven’t had a substantial raise for 28. With today’s expenses, could you afford to feed your family based on the same pay scale you received 10 years ago? How about 28 years ago? A trucker who paid $600 a week for fuel just 3 years ago is now forking out close to $2500. These folks are in dire trouble, and their decline can result in a huge increase in the cost of goods and services we all use.

Why don’t they just raise their rates? What’s the big deal?  Well let me ask you this: What happens if you walk into work tomorrow and demand a cost of living raise to the tune of 10 years worth of inflation? Think your boss would happily oblige? Even worse, Manufacturers can’t absorb the increase. That means the increased cost is passed to the Consumer. The trucking industry doesn’t want that, because it affects us all. Truckers are people, just like you and me. They have families and buy groceries, too.

Don’t they get a fuel surcharge to offset the cost of high fuel?  Some of them do, but it’s not high enough and not all manufacturers agree to provide one. Even when a surcharge is offered, sometimes unscrupulous middlemen pocket the money and only a small portion (if any) actually goes to the guy who bought the expensive fuel.

A Manufacturer might pay a fuel surcharge to the load Broker, who passes it to the Brokerage, who moves it along to the Carrier, who passes it to the Payroll Department, who sends it to the Truck Owner. That’s a whole lot of chances for dishonest fingers to sneak into the pot. With an honorary fuel surcharge system, the trucker paying $2500 a week for fuel might never see a dime of fuel surcharge.

So what if the little guys go out of business? There are huge trucking companies out there to pick up the slack. Despite big volume discounts on everything from fuel to tires to repairs to equipment, (and handouts from Uncle Sam not offered to small, independent truckers), the big trucking companies are also in a world of hurt over diesel prices.

If the competition disappears, the big boys won’t sit back and suffer in silence. They won’t have to. Without competition from the Independents, there is nothing to stop them from doubling their freight rates. Manufacturers would have no choice but to comply, because only the big boys would remain. Say hello to the $8 gallon of milk.

Why do we need truckers at all? Can’t we move more stuff by rail?  Hmmmm….when’s the last time a train pulled up in front of your local WalMart? Any chance one stops in the parking lot of your favorite mall? The US Rail System is inadequate for such a monumental task. It also happens to be in a state of disrepair. The costs involved to repair the current system would be staggering. The costs to bring a train to every gas station, restaurant and grocery store?  YIKES.

So what’s the answer?  I don’t know. I sure wish I did. What I do know is that the fate of the Independent Truckers will have a direct impact on the prices we all pay on everything from a pack of gum to a new house. 

The purpose of the April 1 Shut Down is to protest the high fuel prices we all face, as well as the excessive taxes charged to commercial vehicles. (Beyond the taxes we all pay at the pump, commercial vehicle owners pay taxes per mile traveled in each state, plus property taxes for driving their ‘property’ through some states, plus permits for each state, plus a yearly $550 Heavy Use tax on each truck, plus roughly $2000 a year for license plates fees. I won’t even go into payroll taxes and excessively high tolls.)

Ugly Ass Opinion supports the Independent Truckers and recognizes the valuable service they provide. If a Shut Down can help them, it can help us all. We wish them Godspeed.

This article is an original post from www.UglyAssOpinion.com© Kelly L. Trainor 2008 All Rights Reserved