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May 27, 2008
As Congress continues to badger oil companies, placing the blame of high gas prices squarely on the executives' shoulders while ignoring their own liability, the trucking industry saw the demise of Jevic Transportation. Jevic, based in Delanco, New Jersey, announced on May 19th it was parking its trucks and shutting its doors due to increased diesel fuel costs, economic downturn and increasing insurance rates.Founded in 1981 and employing 1,230 truck drivers, the company has filed for Chapter 11.
While the trucking industry is seeing record numbers of small trucking companies collapse under the increasing cost of diesel fuel, larger carriers are resorting to "drastic" measures to cut costs. Crete Carrier and its reefer division, Shaffer Trucking, (located in Lincoln, Nebraska) recently banned pets from their trucks in order to reduce idling.The average truck burns a gallon of diesel fuel per hour when idling and, according to the new policy, a driver with a pet idles 4% more than those without. This means, of course, many drivers have lost the trusted, furry companion who provides friendship and security to the trucker who often spends weeks away from home. Many drivers have left Crete/Shaffer instead of abandoning their pet, while others have either found new homes for them and, in one extreme case overheard at the Wilmer, Texas Shaffer terminal, a driver with no family had to have his dog put to sleep in order to keep his job in the tight driver market.It is a "blame Fred the basset hound" solution that does nothing but create animosity and stress to a workforce (the American trucker) already overloaded with rules and regulations that go beyond what would be expected from the average office worker.Imagine the outrage if the climate controlled air conditioning system housing the dispatch office was turned off during each lunch break and at the end of the workday.
Large carriers such as Schneider National (Green Bay, Wisconsin) have reduced the maximum speed allowed on their trucks.Now governed at 60 miles per hour, the slower trucks will, theoretically, use less diesel fuel.One must look back at the 1970s when the Federal government, under Democrat president Jimmy Carter, mandated the national speed limit be lowered to 55 miles per hour. It was a concept that did nothing to ease the dependency on oil.The demise of Jevic Transportation and the extreme measures by carriers such as Crete and Schneider should be a wake up call for Washington to come up with a realistic solution to the increasing cost of fuel.
Jim King, Republican candidate for US Congress, 5th District, Florida, recently released an energy plan that has the common sense so lacking in Washington. King's plan states:
1. Immediately sell permits for oil and gas exploration in Alaska, North Dakota, South Dakota and off the coast of Florida. King says, "With respect to exploration off the coast of Florida, America has two options: sit back while China and Cuba drill just off our coast with complete disregard to any environmental impact or do it ourselves."
2. Immediately permit a number of oil refineries within the United States. If state and local governments are unwilling to issue the necessary permits, the Federal government should allow these refineries to be built and operated on a Federal basis.
3. Our economy needs lower corporate taxation on businesses to allow them to expand and create more jobs while decreasing our reliance on foreign oil. This will create a lasting stimulus to our economy, unlike "quick fixes" such as the recent "tax rebate" stimulus program.
4. Immediately end ethanol subsidies and funding. The evidence is overwhelming that ethanol from corn is having a negative effect on our energy needs by raising fuel and food costs.
Many of us remember the long gas lines in the early 1970s. In 37 years, Congress has done nothing to protect and preserve our energy independence. Thirty seven years is plenty of time for Washington to act in the best interests of America.
However, instead of a common sense, long term approach such as domestic drilling and increasing diesel production or a short term "relief" from Federal fuel taxes, Congress has put yet more regulation on an over-regulated industry. The Truthful Reliable Understanding of Consumer Costs" or TRUCC Act was introduced in April and sponsored by Sens. Olympia Snowe (R-ME) and Sherrod Brown (D-OH) and requires that 100% of all fuel surcharges added to freight rates be passed down to the truck owner who is purchasing the fuel. When a freight broker negotiates shipping rates, they often tack on a "fuel surcharge," which is added to ease the cost of fuel.This affects the price of goods regardless who is on the receiving end.Often the broker will keep a percentage of the fuel surcharge. While in theory the TRUCC Act has merit, it does nothing to address the root cause of high fuel prices.
Suing members of OPEC for "limiting oil supplies," as recently proposed by Congress, does absolutely nothing but increase the income of the lawyers attempting such frivolity.Perhaps the American people should be suing Congress for refusing to increase our domestic oil supply.This election year, none of the three contenders for president are addressing the need for domestic drilling and increased production of diesel fuel and gasoline.Rather than give a small 18 cent tax break to consumers and trucking companies, Sen. Hillary Clinton (D-NY) would rather "take the profits from oil companies." Sen. Barack Obama (D-IL) wants "change", which is what we have left after filling our tanks to go to work.Sen. John McCain is busy worrying about global warming, proposing in his April 23rd speech,"With some of the savings from cutting subsidies for industries that can stand on their own, we can establish a national challenge to improve the cost, range, size, and weight of electric batteries for automobiles."
For now, the American economy is fueled by oil.Congress seems bent on destroying American capitalism while pandering to "greenie weenies" who would rather see our great nation revert to a third world country while protecting the polar bear.And while the American trucking industry is nearing collapse over high diesel prices, families are canceling summer vacations and trying to budget between a tank of gasoline and groceries, we can sleep well at night knowing OPEC will be sued and we'll soon have lighter batteries for little electric cars that nobody owns.
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