to truck or not to truck

lone-traveler · Posted: Fri May 09, 2008 8:20 am Post subject: to truck or not to truck

this is the question..

Everyday the cost of fuel keeps rising. What used to cost us $100. to fill our truck now costs about $800.
The freight rate hasn't changed. on average a pay load is $1.50-2.00 a mile. An average truck gets between 5-7 miles per gallon on fuel. We travel about 2500-3000 miles a week.
In an average week it now costs us about $2800. for fuel alone.

The question is,
If we stay trucking how long will it take before it breaks us completely? There are many truck drivers and companies now going out of business due to the high cost of fuel and many other regulations and costs like insurance and maintenance that many just can't afford.

What my worry is, is not so much about what will we do if we go off the road. But if too many trucks come off the road, what will happen to the freight needing to be delivered to the grocery stores, the pharmacies, the building materials, the clothes, etc..
what will happen when you go to the store and there is nothing on the shelves to buy?

If the cost of fuel keeps rising the cost of shipping will have to keep rising, the cost of goods will have to keep rising, to meet the cost of the fuel it takes to manufacture the goods in the first place.
So then, what happens to the consumer when the demand for trucks becomes greater and there are less of them on the road?

If we go off road and the cost of goods keep rising, will we be able to afford the goods themselves?
Right now we live in the truck basically. And at home the electric, water, gas are all shut off. So we don't incur these costs while we are on the road. But if we stay home, then all of these will go up because we will be using them more. And where we live there are not many jobs available. We would have to travel quite extensively daily to have one. So where's the savings in that?
The job itself would pay for the gas we put in our vehicle.

I heard a rumor that the cost of fuel will reach $10 a gallon by the end of the year. Shocked

I pray that doesn't happen.

Right now we are just breaking even. And I think we're making pretty good money. Not great but liveable.
What about those on minimum wage? I saw a notice on the wall said minimum wage was going up to 6.55 per hour.
It's going to cost you 2 days work just to put gas in your car.
That's not even mentioning if you have a house, kids...
utilities, food, clothes, repairs...

You say you want to take a vacation? Rolling Eyes

Can't afford to stay trucking, won't be able to afford coming off the road.
Less trucks means higher demand, means the costs of goods will keep rising. More trucks, means more fuel, means the cost of goods will keep rising...

What's government got to say about it?
our hands are tied...

I'll tell you what though, I'll send you $600 or $1200 if your married of your own money, and you can spend it and boost up the economy.

$1200. doesn't even fill our fuel tanks half full.. Rolling Eyes

The only answer I have for this "refund" everyone who qualifies in getting..is put that money safely aside. We are going to have to let the economy fall so that it can be fixed.
If we keep going like we're going then we will be faced with the same dilemma both Russia and Mexico have had to face. Their money became worthless, their cost of goods rose astronomically over night. People were standing in line for food...sound familiar? like the great depression all over again. Because the government would rather spend a million dollars on building a library in NY than use it to fix the situation themselves.

Hey, I got an idea Idea

You know how congress can vote themselves raises?
I say we vote to cut their pay. And have them live among the general population and see if they can make it work. If they don't like it, maybe they will fix it.

And, have most government officials who keep passing these laws and regulations concerning trucks idling for no more than 5 minutes at a time, whether in freezing or sweltering weather. Have to turn off their air conditioners and heaters in their homes and only run them for 5 minutes at a time.

I'm a little grumpy today.. #evil

just ramblin..
hugs
lone
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Joh 15:14 Ye are my friends, if ye do whatsoever I command you.
Joh 15:12 This is my commandment, That ye love one another, as I have loved you.

Ana · Posted: Fri May 09, 2008 9:36 am Post subject:

About saving vs spending money... just seeing where the thoughts lead me (and I'm not claiming any great economics knowledge, so bear with me)...

If everybody spends it on products/services, then the people who sell the products/give the services can afford both to keep the prices where they're at AND pay truckers to get the products/supplies to the store in the first place. This means that the seller/server and the trucker get to eat and do their thing. The trickle-down is that money goes towards people who sell supplies too (everything from register tape to energy). So the money goes from the purchaser to the seller to the suppliers - an increasing portion of which goes to the oil companies. This creates more purchasers, creating more demand for items/services et cetera. So it keeps going. But the stuff has to come from somewhere... oil stuff has to come from the ground, food has to be grown (good news for farmers!), metal has to be mined, stuff has to be manufactured. This stimulates the industry. More demand for raw materials means more people able to work in the industry which means more money to spend, renewing the cycle.

Now a look at saving:

If you save your money, you're not buying anything. So somebody isn't selling something. But the vendor still has to eat, so does he raise prices to make ends meet when he finally does sell something, or does he get desperate and lower prices just to prod someone to give him some money, anything so he can keep going? Does he stay in business or does he pack up and go do something else? And where does he go? Nothing's happening, so what does he do? I think this is where many Americans might be at now - needing some help. Now, what happens to the money you're saving? It might be making some interest from the bank (not much I'll bet, but some), who is most certainly doing something with it - probably on the international scene, but then, I don't know much about what banks do (other than make obscene amounts of wealth for those in charge).

If it were me I'd spend some and save some for spending later. I'd spend it on important things rather than frivolous things, since obviously what you're spending will favour some markets over others. If times are tight, I'd rather have necessities than say, a new TV.
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Truth doesn't care about theology, and theology doesn't care about truth.

lone-traveler · Posted: Fri May 09, 2008 10:41 am Post subject:

Well,
If it's a new TV, make sure that it's digitally compatable.

I hear what your saying Ana. And either way...it's not going to "fix" the situation. It's only a temporary bandaid.
what happens when that "refund" runs out?
How far is $600 in today's world gonna get you?

Maybe we just all need to go on a diet..
and I'm not talking about those who are out there starving and living paycheck to paycheck..
What a mess it is huh?

clowns to the left and jokers to the right and here we are stuck in the middle..
Rolling Eyes

hugs ana
lone
_________________
Joh 15:14 Ye are my friends, if ye do whatsoever I command you.
Joh 15:12 This is my commandment, That ye love one another, as I have loved you.

Ana · Posted: Fri May 09, 2008 11:13 am Post subject:

I'm more interested in where this bandaid money is coming from, actually.
_________________
Truth doesn't care about theology, and theology doesn't care about truth.

Pete · Posted: Fri May 09, 2008 11:50 am Post subject: Re: to truck or not to truck

45degreeN · Posted: Fri May 09, 2008 11:52 am Post subject:

Its created out of thin air and since it is filled with hot air it will deflate the value of what money there is in the system so the dollars wont go as far as they used to go. Making all imports cost more and our exports cheaper.

The federal reserve has already deflated our currency twice this year and it is not even half way through the year. Now congress deflates our currency with this future loan based upon need not worthiness and we are setting ourselves up for future economic disasters.
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Ana · Posted: Fri May 09, 2008 12:35 pm Post subject: Re: to truck or not to truck

lone-traveler · Posted: Fri May 09, 2008 12:58 pm Post subject:

Pete · Posted: Fri May 09, 2008 1:47 pm Post subject: Re: to truck or not to truck

45degreeN · Posted: Fri May 09, 2008 2:20 pm Post subject:

The oil in Alaska is high sulfur oil and the Japanese are able to use it for themselves their eco laws permit it whereas the eco laws here don't. It is exchanged for rights to equal amounts that the Japanese might otherwise get from the middle East.
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