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In our transportation industry, we have been governed by our operating costs largely due to fuel cost. This year the decreasing fuel prices have impacted transportation, which is making it more affordable, and less burdensome on both ends of the spectrum with shippers and cartage companies alike. With the expansion of production in the United States, and with OPEC not cutting down on their production, it has been a win win for us here and abroad.
Back in 2012, prices were around $3.98 nationwide, and have steadily decreased the last four years to the current average of $2.48 per gallon. The national average for trucking's main fuel was less expensive by $1.179 a gallon from a year ago, when the price was $3.661. Diesel prices now are comparable to what they were in October 2009.
In my opinion, if the current administration in Washington, D.C. would allow the construction of the Keystone Pipeline it would further lower fuel cost and could make the United States free of foreign oil. It is estimated that about 43,000 jobs would be created, and in these circumstances, many of them would involve the trucking industry.
It is imperative that in our line of business we support lower fuel costs, and remind those who are in position in our Nation's Capital that this is in the best interest of all parties involved. Lower fuel costs will create lower operating costs, and may make conditions more attractive for companies to strive and expand. By keeping the fuel cost down this will not only help the shippers with freight cost, it will also take some of the burden off the transportation carrier by helping keep fuel expenses lower. Which in turn will help ease the pain of ever raising insurance cost and truck maintenance repair for the carrier.
Transportation Broker, Chicago
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Eric Sawchuk has
been a Transportation Broker for 15 years, and the last 12 years with the Allen Lund Company.
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| About Allen Lund Company: Specializing as a national third-party transportation broker with nationwide offices and 400 employees, the Allen Lund Company works with shippers and carriers across the nation to transport dry, refrigerated (specializing in produce), and flatbed freight; additionally, the Allen Lund Company has an international division, which is licensed by the FMC as an OTI-NVOCC #019872NF, and a logistics and software division, ALC Logistics.
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