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Fuel Prices???

Feb 19, 2016 at 04:59 PM CST
+ 1 - 2
Does anybody else find it flat out insane that when oil peaked at $160+/barrel we were paying about $4.50/gallon in the midwest, and now with the current update I heard this afternoon, the price of a barrel of oil had dropped again to under $30/barrel. Now given some simple math if we take $30/$160 that gives us a decrease of 81.25%, if we take 4.50/gallon and multiply that by 18.25% that gives us a cost of a whopping $0.84375. Does anybody else find the fuel prices flat out ridiculous right now given the price of oil??? Not to mention that gasoline is still cheaper than diesel fuel??
Replied on Fri, Feb 19, 2016 at 05:48 PM CST
Jason it still takes X$ to produce a gallon of fuel. Then add on the taxes to that gallon. The oil companies price per gallon is not based upon the speculation prices at the market. Those speculation prices on the other hand make our price flux up or down to a certain extent. The oil companies are not in business to lose money, that would seem to be the truckers job. We are the only ones that are expected to run for less than what our cost is on a continuous basis. I am buying two new dry vans and parking the hopper again, when we keep getting asked to haul loads for $1.00 per mile and are told that the price of fuel is the issue. I have dry van customers offering way more than that to haul their freight. Hmmm not having to sit in lines for 6 - 8 hours at a time, not having to haul 80,000+ just to try and make some coin. Not having to run extra miles to do wash outs and waste more time, energy, and money for that. Yeppers, I should have bought those boxes sooner, but I did not need the tax break last year. Funny when you see dry vans hauling grain into an elevator and they are getting paid more money than a hopper for less weight: Crazy stuff right there I tell you.
Replied on Fri, Feb 19, 2016 at 05:56 PM CST
Forgot about the deadhead involved that nobody seems to want to pay for anymore. I guess TOTALLY QUIRKY LOCOS showed the hopper community the way. Teaching us all to run for one way money. I remember when I first got my hopper and thought the same thing, until guys like Art, Jason W, Jeff, Jerry and others railed on my and taught me the errors of my ways. You can run a dry van like that because there is freight almost everywhere for dry vans, hoppers, bull-wagons, tankers, flat-beds, not so much.

Well, I guess that is why I believe in Freedom with Integrity, at least I can sleep at night knowing that my honor and integrity is not at question by my men and my customers.
Replied on Mon, Feb 22, 2016 at 11:51 AM CST
Jason, what i really find insane is loads out of catoosa going into nebraska for less than a $1.20 a mile, heck they could give us the fuel and we would still loose money!
Replied on Mon, Feb 22, 2016 at 11:51 AM CST
Jason, what i really find insane is loads out of catoosa going into nebraska for less than a $1.20 a mile, heck they could give us the fuel and we would still loose money!
Replied on Mon, Feb 22, 2016 at 11:56 AM CST
Glenn, what is really insane is a question I always ask? Why in the hell do all of my regular screwdrivers along with my half in wrenches and 1/2" sockets keep on disappearing what the hell??
Replied on Mon, Feb 22, 2016 at 01:36 PM CST
Originally Posted by: JASON WEAST
Quote: "Glenn, what is really insane is a question I always ask? Why in the hell do all of my regular screwdrivers along with my half in wrenches and 1/2" sockets keep on disappearing what the hell??"

God Dam Jason i feel your pain, you made me laugh i needed that!!!!!!!!!!!!!!!!!!!!!!!!
Replied on Mon, Feb 22, 2016 at 11:02 PM CST
+ 1
Originally Posted by: ALFRED JORDAN
Quote: "Jason it still takes X$ to produce a gallon of fuel. Then add on the taxes to that gallon. The oil companies price per gallon is not based upon the speculation prices at the market. Those speculation prices on the other hand make our price flux up or down to a certain extent. The oil companies are not in business to lose money, that would seem to be the truckers job. We are the only ones that are expected to run for less than what our cost is on a continuous basis. I am buying two new dry vans and parking the hopper again, when we keep getting asked to haul loads for $1.00 per mile and are told that the price of fuel is the issue. I have dry van customers offering way more than that to haul their freight. Hmmm not having to sit in lines for 6 - 8 hours at a time, not having to haul 80,000+ just to try and make some coin. Not having to run extra miles to do wash outs and waste more time, energy, and money for that. Yeppers, I should have bought those boxes sooner, but I did not need the tax break last year. Funny when you see dry vans hauling grain into an elevator and they are getting paid more money than a hopper for less weight: Crazy stuff right there I tell you."

This is true. I've heard for years about banding together and that sort of thing, it'll never happen. I've seen it bad before don't know that I've seen it this bad in a long time. I've considered contacting with menards and dragging their boxes and flats around local for a while. Can't be any worse than what I'm making pulling grain around, and I don't have the expense of wear and tare on the trailers. I don't know it's tough to say my rates aren't as bad as they could be, I'm just thankful to have the work at this point and it's not near as bad as what i've heard from a lot of people. But I also don't run over the road and I don't touch feed ingredents anymore. I got out of that after the last lease on went to hell. Multi billion dollar company that used a broker. When I leased on if I'd have known they used a broker I'd never have wasted the time to go down there and slam under their wagon. There was a lot of stupidity at that company to say the least.

Truth be told I make more each week after fuel running straight grain and being home every night than I did running more miles, and spending 5 nights a week in my truck. I'm lighter with my tri axle than I was with their tandems, and I don't have a broker taking 10% a company taking 20% and me making .98/mile on the hub. That was one of the few places I believe I would've made more money taking 1.00/mile plus FSC as opposed to being on percentage. I won't name names but I will say I'm not impressed I don't know that they're even in the OTR market anymore haven't seen any of their trucks running around lately. But I do recall last year after I left within about 3 months they had another 5 or 6 trucks leave.

If you really want to talk about crazy Hirshbach is not jerking around hoppers, they've apparently contracted with sweet bran from cargill. I don't know what guys were getting paid to do it before but I'm sure it's about half price now. I'd never seen a ,mega pulling a hopper until I seen platnum supply solutions hooked to a hopper. Next think you know we'll have 12 hour lines at the elevators when swift werner and CRE get into the game.

I can see it now
"how long is the line over in St. Joe"
"Oh it's backed up past the KS line on 36 Swift decided to take out the probe and down there, and werner tore the door off the bean meal load out, I do believe CRE also got his truck stuck when he pulled into the bean dump guess he didn't realize that 13'4" doesn't clear 12'6"

I shudder to think that may happen but with what it's like right now I don't know that we're too far off from that situation