At $600 a tankful, diesel gives truckers a pain in the wallet

The Associated Press

3/31/2008

MEDFORD, Ore. — As diesel prices soar, the trucking industry is feeling the pinch.

Companies are facing fuel costs that exceed labor costs. And independent drivers are struggling to survive.

"Diesel used to be 30 to 40 cents cheaper than regular gasoline; now it's 30 to 40 cents more," said independent truck driver Gordon Gravely, of Helena, Mont., who stopped at the Phoenix Petro Truck Stop on his way to Roseburg. "It costs $600 to $700 to fill up one tank now."

Diesel this week was at an average of more than $4 a gallon in Oregon and Washington and nearly $4.12 in California, according to the American Trucking Associations.

"It worries the hell out of me," said 10-year truck driver Stan Hall, of Salt Lake City. "It just seems like a nightmare. In my wildest dreams, I wouldn't have guessed it would get this bad."

Hall said his company restricts drivers to certain fuel stations, where it has negotiated discount diesel rates.

"They tell us not to buy fuel in California," Hall said. "We are supposed to buy only as much as we need to get out of there."

Truck driver Rex Taylor, of Olympia, Wash., who stopped in Phoenix, Ore., on his way to Arizona, said he doesn't expect a pay raise this year unless fuel prices ebb.

Mike Card, president of Combined Transport in Medford, has 388 tractor-trailers in the company. He says the company is spending $2 million a month on fuel.

To help offset the costs Combined Transport has discount agreements with some fuel stops and installs tires, aerodynamic body parts and anti-idling devices that make the trucks more fuel-efficient. The company also reduced the maximum speed for its trucks to save on fuel.

The high prices have taken a particular toll on drivers who own and operate a truck.

"There is a disproportionate burden placed on small business owners who are truck drivers because they depend upon diesel to run their businesses," said Norita Taylor, a spokeswoman for the Owner-Operator Independent Drivers Association.

Taylor said she's heard from some independent drivers who plan to strike Monday or Tuesday over the high prices.