Fuel prices hit trucking

| Print |  Email
Tuesday, July 01, 2008

STATEWIDE In the words of Oregon Trucking Association president Bob Russell, state truckers are “painfully” grappling with soaring diesel prices.

In the first week of June, the average price for diesel on the West Coast was $4.87 per gallon, nearly $2 more than a year ago. California is the priciest, at just over $5 per gallon, according to the Energy Information Administration.

The price increases hit small and independent big-rig truck operators especially hard because their profit margins are already slim. It takes $1,500 on average to fill up a truck now, Russell says, costing operators hundreds more dollars each time at the pump.

Current troubles in the overall economy equate to a “double whammy” for truckers, too, Russell says. There’s less demand for product shipping, which means less business for truckers.

Among his 784 members, Russell says truckers who haul logging and forest products are being hit the hardest. That business has dropped 50% from the same time last year.  With others, business has declined by up to 25%.

Russell says only a handful of his members so far have been forced out of business because of fuel prices. But nationwide in the first quarter of this year, the American Trucking Association reports that more than 900 operators have shut down, up from 385 last year.

At Portland-based Fleet Truck Sales, sales are down from this time last year, says Rick Vasquez, a sales representative for the company. He sees some silver lining, though, because as more operators go under, there’s more freight to be hauled for remaining operators.  

“Freight’s still gotta move, and the cost is going to be passed on,” Vasquez says.



To comment, email This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

 

More Articles

Banking Perspective

April 2015
Thursday, March 26, 2015
BY KIM MOORE

A conversation with Craig Wanichek, president and CEO of Summit Bank.


Read more...

Much ado about data-driven organizations, for good reason

Contributed Blogs
Monday, April 13, 2015
bigdatathumbBY GRANT KIRBY | OP-ED CONTRIBUTOR

The mega-shift from technology-driven to data-driven organizations raises questions about Oregon’s workforce preparedness.


Read more...

Party Like It’s 1999

Contributed Blogs
Wednesday, February 25, 2015
pets-com-sock-puppetBY JASON NORRIS, CFA | OB GUEST BLOGGER

Pets.com, GeoCities, eToys, and WorldCom … blasts-from-the-past that all signify the late 1990s Internet bubble. Yet we believe the dynamics of the market, specifically in technology stocks, are much different today than it was during the late 1990s.


Read more...

Grassroots movement pursues carbon bills

News
Tuesday, February 24, 2015
eventthumbBY KIM MOORE | OB RESEARCH EDITOR

A partnership of a grassroots environmental organization and a youth group is striving to build community and business support for carbon price legislation.


Read more...

Power Players

April 2015
Friday, March 27, 2015
BY ROBERT MULLIN

A new energy-sharing agreement sparks concerns about independence and collaboration in the region's utility industry.


Read more...

Hot Topics/Cool Talks recap

Linda Baker
Friday, April 24, 2015
htctthumbBY LINDA BAKER

A recap of "Tech in Transit: Will Portland Build the Next Uber?"


Read more...

ZoomCare rolls out new on-demand health clinics

News
Monday, March 02, 2015
zoomcarethumbBY KIM MOORE |  OB RESEARCH EDITOR

Portland-based healthcare provider ZoomCare said it plans to “remake American healthcare” by expanding its on-demand urgent care model to emergency, surgery, dental and primary care, among others.


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS