diesel soars truckers parking their rigs usa

Hard times for truckers
HIGH FUEL COSTS SPUR SOME TO QUIT
By Vicki Lee Parker
Raleigh News & Observer
Article Launched: 03/09/2008 01:40:14 AM PST



RALEIGH, N.C. - Harold E. Funderburk has noticed more and more big rigs parked on the side of the road with "for sale" signs in their windows.

"They are just giving it up, selling their stuff and going to work for some big (trucking) company," the Raleigh, N.C. trucker said.

The high price of regular gasoline usually gets all the attention, but the price of diesel has been steadily climbing. Last week, diesel nationally hit a record $3.68 a gallon.

If prices keep climbing, Funderburk said, he will park his semi, too.

"I'm going to make one more trip," Funderburk, 58, said this week. "When I get back, I'll make my decision."

The average tractor-trailer gets just 5 to 6 miles per gallon, and, at current prices, it can cost more than $700 to fill the empty tanks on most long-haul trucks. That's too much for many truckers to keep hauling goods.

Todd Spencer, executive vice president of the Owner-Operator Independent Drivers Association in Grain Valley, Mo., estimates as much as 10 percent of the association's 161,293 members have parked their trucks.

"Right now they are likely spending $70,000 to $100,000 a year just for fuel," Spencer said. "We are talking about losing half of their net income for the year. They simply cannot survive."

The ramifications go far beyond the trucking industry. With most of this country's goods transported by truck, fewer drivers can lead to strained supplies while higher fuel costs can be passed along to consumers who are already paying more for food and other goods.
The high fuel cost is a relatively new problem for trucking companies. Until a few years ago, diesel fuel - a byproduct of petroleum - was generally less expensive than regular gas. But government mandates to make diesel fuel cleaner and higher oil prices have steadily pushed up the price of diesel. The higher costs coupled with a slowing economy have been hard on the entire trucking industry, but especially so on small companies and independent drivers.

And it doesn't look as if there is going to be price relief any time soon, said Tom Crosby, an American Automobile Association spokesman.

Crosby said that the nation's already-strained oil supply has been worsened by a temporary refinery shutdown in Texas and minor glitches at other production sites


The weak economy isn't helping truckers, either.

With the downturn in the housing market, there are fewer construction supplies to ship. And consumers are starting to put the brakes on spending, which means less cargo to move across the country.

Tom Lancaster, an independent trucker from Cumberland, Md., said he usually tries to haul close to home in case he has to wait for a load. But on a recent weekday he was at a truck stop in Dunn, N.C., for an overnight stay.

He used the down time to do some light maintenance on his truck - one way he saves money - while he waited to hear whether he'd get another load. He had to get one that would cover the $315 in gas he figured it would cost to spend the night and make the drive.