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PostPosted: Thu Mar 06, 2008 3:28 pm 
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retmil46 wrote:

Cowpie, what's the word in the OTR world on the effect these prices are having? I'm hearing of more and more owners parking their rigs because it's not worth their time anymore, and seeing more and more independent rigs delivering goods at Freightliner with "For Sale By Owner" signs attached to them. Since it directly affects my livelihood (building OTR rigs), I'm definitely interested in what's going on.


It depends on a lot of factors. Part of freight rate negotiation is also to get a fuel surcharge. A lot of the large carriers are not passing on the true fuel surcharge to the truck owners. For instance, Schneider is only passing on mid 30 cents per mile fuel surcharge. However, if calculated correctly (i.e. based on 5.5-6 mpg and a base fuel cost of 1.20/gal), the current fuel surcharge should be around .45/mile and going up weekly.

What the crop of steering wheel holders need to understand is that if they are getting the proper fuel surcharge, and if they get 1 mpg average better than the base line, they will in fact NET an extra $10K a year at current prices. They can in fact make more money the higher the fuel cost goes! I know it sounds crazy, but spreadsheets don't lie. So in a nut shell, for the owner/ops that want to play poll position at Daytona, they will go broke. For those that manage their time and speed, they will in fact net more per mile. The national stats are what they are...... there are many owner ops that are making more on less miles than last year or year before.

I average near 7 mpg with my semi (little less in winter months) which is almost 1.5 mpg better than the 5.5 mpg baseline that our fuel surcharge is calculated on. Therefore.... I will NET $10K - $15K more. From this standpoint, I say "let the fuel cost continue to go up". From a personal standpoint, it bothers me that the costs are rising so high. It only hurts everyone, not only in the fuel tank, but with everything they buy.

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PostPosted: Thu Mar 06, 2008 5:45 pm 
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Last Monday I filled up at 2.60 per gallon. Today I drove by the same station and it is 2.79-WTF!!


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PostPosted: Thu Mar 06, 2008 5:51 pm 
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vtdog wrote:
Last Monday I filled up at 2.60 per gallon. Today I drove by the same station and it is 2.79-WTF!!


still $1 cheaper than here in PA

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 Post subject:
PostPosted: Thu Mar 06, 2008 6:51 pm 
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My error in typing should have been 3.60 & 3.79


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PostPosted: Thu Mar 06, 2008 10:24 pm 
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$4.09 today in Quakertown, PA


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 Post subject: This week in MN where I have been working.
PostPosted: Thu Mar 06, 2008 10:41 pm 
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I saw Diesel from $3.55 to $3.69 at the pumps today. It is still too cold for the Farmers to start using Diesel in MN. I did notice stacked fire wood, so them must be using the fast way to returning the CO2 to the atmosphere instead of the slow way of letting it rot.




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PostPosted: Fri Mar 07, 2008 2:25 pm 
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While on vacation the cheapest place I found for diesel was in Spearfish, SD. I paid $3.38 at Safeway including the .03 cent a gallon discount.


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PostPosted: Fri Mar 07, 2008 2:57 pm 
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Just filled up today. RUG 3.259 Diesel 3.739
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PostPosted: Fri Mar 07, 2008 3:47 pm 
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Hows THIS for F-ed up?

Georgia, usually the cheapest fuel in the entire country.. Last night: diesel 3.75-3.79, gas 3.15-3.19...

Into Florida, usually considerably MORE than Georgia - Diesel 3.65, gas 3.15.

Someone want to tell me exactly WTF is going on here to justify that?

And Reflex, the decline of the dollar and the gouging of the oil refiners is not a new thing. Yea, there IS a "bubble" happening in the prices and trading... But I'll bet you cash money that it's being driven by the ones who will be booking record profits again, right up to November. Then suddenly in early September, the prices will drop like a brick. It happened in 2000, again in 2004... It WILL happen again. And its not "market forces" or any "rise in demand" like the pundits keep spouting. Its raping the populace, pure and simple.


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PostPosted: Fri Mar 07, 2008 4:15 pm 
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I love how when the prices increase they go up 0.15 to 0.20 a gallon in one jump, and when they go dwon, it's pennies at a time. And here diesel just jumped from $3.50 Wednesday to $3.75 Thursday...

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 Post subject: $3.89 in Aurora, IL
PostPosted: Fri Mar 07, 2008 4:21 pm 
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Here at home it jumped $0.40 in the last month, must be that Global warming ain't working any more.

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 Post subject:
PostPosted: Fri Mar 07, 2008 4:29 pm 
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geordi wrote:
Hows THIS for F-ed up?

Georgia, usually the cheapest fuel in the entire country.. Last night: diesel 3.75-3.79, gas 3.15-3.19...

Into Florida, usually considerably MORE than Georgia - Diesel 3.65, gas 3.15.

Someone want to tell me exactly WTF is going on here to justify that?

And Reflex, the decline of the dollar and the gouging of the oil refiners is not a new thing. Yea, there IS a "bubble" happening in the prices and trading... But I'll bet you cash money that it's being driven by the ones who will be booking record profits again, right up to November. Then suddenly in early September, the prices will drop like a brick. It happened in 2000, again in 2004... It WILL happen again. And its not "market forces" or any "rise in demand" like the pundits keep spouting. Its raping the populace, pure and simple.

The profits are only a 'record' if the value of those dollars is ignored. A dollar is worth slightly less than half of what it was 7 years ago, so a company that is international has to earn twice as many dollars to equal profits from seven years ago. Sure the numbers look big to us, but thats because our expenditures stay in the US and thus we are not exposed to international expenses like a multi-national corp is.

There is no evidence that the oil distributers are making more per gallon than they ever did before. There is plenty of evidence however that consumption is up, the dollar is down, and as Retmil points out, speculators are getting very wealthy.

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PostPosted: Sun Mar 09, 2008 11:22 am 
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Here on Long Island diesel is $4.15 a gallon. Cant wait to see what it does during the summer driving months.

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PostPosted: Sun Mar 09, 2008 4:51 pm 
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Perhaps its time we seriously consider a LOST-based algae farm and biodiesel refinery...

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 Post subject: Re: $3.89 in Aurora, IL
PostPosted: Sun Mar 09, 2008 5:59 pm 
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warp2diesel wrote:
Here at home it jumped $0.40 in the last month, must be that Global warming ain't working any more.


Up to $4.19 in Summit just outside of Chicago. Went up from 3.89 to 4.19.

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PostPosted: Sun Mar 09, 2008 6:02 pm 
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KC: Count me in for that! I'll donate my time for the development of the biodiesel conversion side of things, and I would LOVE to prove that all you need to do to extract the oil is crush the algae like you are pressing grapes. :) LMK when and where we are setting it up.


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PostPosted: Mon Mar 10, 2008 10:15 am 
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Give me some time. I've been discussing this with some of the locals, and given the co-op setup we have with some of their grants... we might be able to prototype a process and then "GPL-it" ... General Public Licensing, think Open Source software/Linux. What I've seen so far is locked down methods for sale, not what I feel biodiesel's all about. Biodiesel is like tobacco: you can pay RJ to roll it for you, or get off your behind and grow/roll it on your own (not that I've really done the latter).

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PostPosted: Mon Mar 10, 2008 12:09 pm 
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Up to 72 cents higher now!

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PostPosted: Mon Mar 10, 2008 12:12 pm 
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PostPosted: Mon Mar 10, 2008 12:17 pm 
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$3.89, $3.99 for Diesel last night in Addison, TX (dallas).

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