Trucking business feeling the pinch due to soaring diesel prices

by Trisha L. Foncannon

This summer's soaring fuel prices have hit the nation's trucking industry hard, forcing many mom-and-pop trucking companies out of business and prompting others to search for ways to make ends meet.

With diesel fuel prices averaging around $1.55 in Indiana on Friday and no immediate relief in sight, Wabash Valley truckers and truck retailers said the price of fuel has drastically cut their profits.

"It's hard for the small people to make any money," said Butch Zucca of Universal. "I've got one truck of my own, and it seems like I'm putting more money out in fuel than I'm putting in my pocket."

Zucca isn't alone.

Walter B. McCormick Jr., president of the American Trucking Association, on Wednesday told Bill Richardson, secretary of the United States Department of Energy, that the trucking industry won't be able to keep enough trucks on the road to keep the nation's economy moving unless significant action is taken to drive fuel prices down.

And with the trucking industry hauling an estimated 80 percent of the nation's goods, that's bad news for consumers as well, McCormick told Richardson, according to a trucking association news release.

All motorists have felt the pinch at the pump this summer. The AAA Hoosier Motor Club estimates that for a typical two-car family using about 1,206 gallons of gas per year, the increase in fuel prices would mean an additional $410 in driving costs this year.

But with truckers filling up with about 300 gallons of diesel fuel at a time, they are feeling the pinch more than most drivers, some truckers said.

The average price to fill their tanks has risen from about $300 at the beginning of the summer to more than $450.

Angry truck drivers have protested the high fuel prices in Indiana, slowing traffic Thursday on Interstate 70 east of Indianapolis as a convoy of about 35 trucks continually sped up and slowed down to tie up traffic behind them.

Protesting isn't the answer, though, Zucca said.

"That's not going to get nothing accomplished," Zucca said. "It's just going to make people mad."

P.J. Davenport, owner of P.J. Trucking in West Terre Haute, agreed with Zucca.

"I don't think protesting will be doing any good," said Davenport, who also drives his trucks occasionally. "I don't know what we can do. Unfortunately, I don't think it's going to do any good to strike. I wish I did have the answer; I'd call Mr. Clinton and let him in on it."

It's not just truck drivers who are looking for answers.

Keith Notestine, general manager of Terre Haute Truck Center, has been in the truck sales business for almost 40 years. This year's diesel prices have contributed to the worst year he's seen in his career.

Profits have dropped almost 50 percent in the past year, mainly because of high fuel prices, he said.

"People have returned their trucks," he said. "They just walk in, put their keys on the desk and say, 'I can't make it.' "

And though he doesn't think the fuel prices will force many of the long-term small trucking businesses to close their doors, the financial burden might be anyone to push new drivers out of the business.

"There's still a lot of guys out there that can make it, but for the new operators, fuel prices have just pushed them off the cliff," he said.

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-- Martin Thompson (mthom1927@aol.com), September 24, 2000

Answers

With truckers hauling 60% of the naton's goods - that says it all.

If they are hurtin' we are all going to be hurtin'.

-- Wellesley (wellesley@freeport.net), September 24, 2000.