Our local pump prices have been dropping to lows unseen in, what?, ten years?? Why?

a reply to: AmericanRealist

Gas prices are irrelevant to the food price. It's diesel that matters, and it's staying higher than gas prices. Add in that the freight market, which is usually extremely busy this time of year is well below last year at this time, and food prices are staying up.

originally posted by: Zaphod58
a reply to: AmericanRealist

Gas prices are irrelevant to the food price. It's diesel that matters, and it's staying higher than gas prices. Add in that the freight market, which is usually extremely busy this time of year is well below last year at this time, and food prices are staying up.

It will help over time at least and prices are not going up still. If we get back to pre 2007 prices with low gas cost on top of that life would improve for a lot of Americans.

a reply to: Xtrozero

It helps, but until diesel comes down and the market recovers transportation prices are going to keep prices high. I don't think I've ever seen freight this soft this late.

originally posted by: Zaphod58
a reply to: Xtrozero

It helps, but until diesel comes down and the market recovers transportation prices are going to keep prices high. I don't think I've ever seen freight this soft this late.

I'm sure they will continue, and it seems diesel is not that much more than gas still. When looking at price history diesel is down to 2005 rates, so not bad so far. Aviation gas is sure dropping good too, so I'm not sure what is driving diesel to not be even better.

Looking at it there seems to be a few other issues too.

1. Less transportation companies. Some could not handle to higher costs in the past and now there is higher cost due to government regs and required equipment.
2. Not enough drivers, can not meet demand so they can set their prices to maximize profit and people still need to pay.
3. Aging Fleets & Equipment sold off in the recession years starting in 2008 that has not been replaced.

a reply to: Xtrozero

Fuel prices are only one part of why costs are high, but they should be even lower. Diesel should be lower than gas.

A strong US dollar helps US import volume pretty much kills exports of US commodities that sell based on "price"alone.

investmenttools.com...

Reminds me of those years prior to WW2 when the global economies were pretty much self sufficient and the only time you shipped anything you were at risk of a submarine attack in the Atlantic.

originally posted by: Xtrozero
Welcome to the oil wars. Maybe oil at $35 a barrel has something to do with it, losing 10% in one week. We are also in the winter months with cheaper gas and more supply than summer months. Enjoy it now since Russia and a number of other countries can not live on less than $90 per barrel.

I want to invest 40,000 in a gas co-op. Where you are locked in at that price you put your money in until your funds are gone. That is about 20+ years of low prices, woot!

One of the big spikes this time of year is fuel oil consumption in the New England states. No snow! Records broken in the N.E..

That adds to the overall surplus and is driving prices down pretty much everywhere.

a reply to: Zaphod58

Diesel prices actually dipped below gas in Washington St. for a short while. I believe up in B.C. diesel is still cheaper than gas.

Diesel that was $4.00 plus a gallon a while back is in the mid to low 2 dollar range.

Most of the trucking companies operate on a fuel surcharge system. Based on a mean price, weekly, the surcharge goes up and down with the price of diesel, Not all, but most.

So most likely, the trucking companies have been obligated to reduce the charges to customers.

It's the middlemen, the retailers, etc. that are profiting/recovering from the higher prices.

a reply to: nwtrucker

A lot of them operate on a rebate program, but still charge the customer based on an estimate of how many miles it is, the total weight and other factors.

One of the big ones, again, is that this is the worst the market has been in many many years. Trucks are getting loads that don't pick up for 24+ hours after it's assigned to them. Normally this time of year trucks have loads stacked on them days ahead of time.

originally posted by: Zaphod58
a reply to: nwtrucker

A lot of them operate on a rebate program, but still charge the customer based on an estimate of how many miles it is, the total weight and other factors.

One of the big ones, again, is that this is the worst the market has been in many many years. Trucks are getting loads that don't pick up for 24+ hours after it's assigned to them. Normally this time of year trucks have loads stacked on them days ahead of time.

So much for the 'driver shortage'. That one is pure economy.

Still, it generally winds down around now. Especially longer hauls. More serious is when it picks up again....

a reply to: nwtrucker

It's usually the Christmas rush now into January. Especially pulling a reefer. But we're not seeing it this year. It slowed down at the end of summer and never came back. Usually October to January we can't run hard enough. This year we're sitting overnight, and getting 1800 mile runs with three and four days on them. Or 5-600 mile runs.

A couple of months ago a broker put the word out that if you saw ANYTHING out of Laredo, grab it. Otherwise there was no telling when you'd get a load out, because the market was so bad. There's usual a ton of produce and chocolate coming out of Mexico through Laredo.

a reply to: Zaphod58

I haven't really been up on the national scene for a while now.

I'd have assumed-and seen evidence of-teams getting the priority loads as solo log restrictions make things tough for them.

If even you team guys are suffering...by the way, what outfit are you driving for?

a reply to: nwtrucker

We pull for one of the bigger companies, so they can deal with the brokers and crap. I won't say which though.