EYE ON TRUCKING: Regardless of currnet events, it's time to stop and smell the roses

By LYNDON FINNEY
The Trucker Staff

6/23/2008

Scatter shooting while wondering what happened to $2-a-gallon diesel …

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A few days a ago, we asked Web visitors to offer a comment on the high diesel prices.

Here are some of the comments:

From Noel D: “The current prices will sink America to an all-time low. It will affect the entire country down to the last consumer. The federal government wants to get involved in everything but trying to help the American people survive the crisis on fuel. The people running for office want to talk about everything but helping us survive.”

From Neil A. Nieminsky: “Truckers are not the only ones who are affected by the cost of diesel fuel.  Agriculture, mining, public transportation (trains, waterborne vessels — ferries, tug boats, etc. —and buses), private vehicles (cars, SUV's pick-ups) and the construction industry all use diesel.  Unfortunately, the only users who cannot pass on their costs are the private users.  What I cannot understand is why diesel is now more expensive than gasoline since, to the best of my knowledge, there are less refining processes required to produce diesel than are required to produce gasoline.”

From John Franklin: “The price of diesel is going to drive the cost of other goods and services so high that many low-income Americans will not be able to afford to feed their children, much less themselves. I know for a fact that many of the food pantries run by churches and other charitable organizations are receiving more requests than they can fill.”

All this is on the heels of the news that the average price for a gallon of diesel jumped another 16 or so cents for the week ended May 19.

Since the price of oil has not risen sharply during the past week, we can only assume that the diesel market is responding to the crisis facing China in the wake of the recent earthquake and that country’s announcement that it may need to increase its diesel supply as part of its rebuilding effort.

And just when you think things can’t get any worse …

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…Word comes that Jevic Transportation has closed its doors.

Slammed ‘em shut May 19 without advanced warning to its employees.

How would you like to learn tomorrow that (1) you didn’t have a job any longer and (2) your health, prescription, dental and vision plans were gone and since the Jevic group plan no longer exists, there is no COBRA?

Drivers were told to either turn in their uniforms or leave them in their truck after their final run.

The company had 1,185 power units and 1,230 drivers, according to Federal Motor Carrier Safety Administration information.

Jevic President and CEO David Gorman blamed high fuel costs, economic downturn, increasing insurance costs and tightening credit markets as the reason the industry has lost a good carrier. Many feel it won’t be the last to fold.

And just when you think things can’t get worse …

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…Word comes that IdleAire has filed for bankruptcy.

We’ve known the folks at IdleAire for a long time and it’s sad to see this company in financial trouble.

When in January 2006 the company announced it had received funding for an ambitious expansion of its services, the industry was in an upswing and no one could have forecast the current situation.

We feel certain that in addition to carriers and independents having to tighten their belts and perhaps cut back on utilization of IdleAire facilities, the numerous factory-installed auxiliary power units that have been introduced recently contributed to IdleAire’s situation.

IdleAire has secured a $25 million Debtor-in-Possession credit facility to provide funding for the company as it works through the Chapter 11 reorganization process. The Chapter 11 process will allow the company the opportunity to restructure its debt and emerge under new ownership on a more financially solid foundation, the company said in a recent announcement.

And then, when you think things are only getting any worse …

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… If you’re alive today and breathing the warm summer air, take a little time to breathe a prayer of thanksgiving.

Maybe things aren’t really as bad as they seem.