Truck Driver Job

Fuel Prices

Well some are relieved that the fuel prices have come down a bit, I am one of them. However I remember when I was complaining about $1.35 for Diesel Fuel. Then shocked to find it cost me, something like $2.35 in California about two weeks ago. I hear now it is back down under $2.00 and everyone is happy now? Come again you are happy about $2.00 per gallon, ouch. Well I have been reading a bit and trucking tonnage is down 1% in the last month. That is a lot, very significant, it will be interesting how they brush that figure under the; "Oh the economy is fine, fuel prices do not matter, there is no inflation carpet;" I say baloney.

Any time you raise fuel prices it effects industries. Look at Delta Airlines, they are in dire straights but luckily got a slight reprieve today from GE Capital on their aircraft. They have burned thru all the credit they borrowed which was suppose to the get them out of this turbulence and into the clear September-October skies. Looks like that 600 million is gone in a hurry. Then we see the America West Merger with US Air just in the nick of time; there are issues. Meanwhile the heavies; United, American, Continental are looking to cut costs more than Lorenzo ever dreamed of, of course he wanted to do it to put it in his pocket and raid the pension funds. But really the way things are going in corporate America the Fortune 500 is going to renege on all those pensions anyway. People are scrambling for long-term health care insurance, social security ponzy scheme is a joke and no one is going to be able to retire on the golf course like before.

Back to the issue of fuel, when you wait in line at a gas station and the guy in the Suburban is crying after putting $97.00 in his tank and shaking his head and his kids are saying; " Dad, what's wrong?" Well that is about the time that you say; "Houston, we have problem." It appears that surely we can deal with it and we are dealing with it, but when the tonnage drops a whole percent in trucking in one month and the airline industry cannot get out of its sector rotation tail slide and is looking at a flat spin, that is when you have start discussing sustainability of the business cycle. Oh and by the way, here in China, these folks are doing a lot more driving than you think and they are buying cars and learning a new Chinese word for traffic jam. So, we need to think about things in the US and how we go about our business. We need to focus on efficiency, distribution and the cost of refined fuel. Think on this, because it is not one of those quick fix, get the ball in the center and pull back on the yoke deals.

"Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs

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