The article will discuss how some owners have reduced horsepower in the engines of their trucks in order to increase profit and have also choice to run day routes in smaller trucks. Following the discussion of the rising prices in the trucking industry the author will dicuss his understanding of the topic. The author will also dicuss the SWOT analysis method and finds ways on how this problem can be fixed. This article will be concluded with a summarization of the autors key points. Fuel prices going can be very costly for any trucking company.
By having crude old prices rise to over a hundred dollars a barrel has made many major companys take a different approach in there business. Indepndent owners have had to considering if staying in the truck the business is still profitiable. In 2000, using our proprietary historic sales data, Nassau Asset Management developed a forecasting tool for our own use. In 2003 we decided to formalize this information and began to release it to the public. Thus was born the NQI – or Nassau Quarterly Index – which we have released every quarter since 2003.
Some of the index’s latest trends begin when comparing 2006 to 2007. During this period, we saw a 1 10% increase in truck repossessions and liquidations. The latest data shows that repossessions are down approximately 21% in the first quarter of 2008 as compared to the robust Ql of 2007, but this still represents a significant amount of activity in this sector. Though pausing a bit, the overall level of truck repossessions for Ql 2008 remains high. (Castagna, 2008) This shows the the rise in crude oil has made it more difficult for trucking companys to make a profit.
The Essay on The Rising Price of Food
Recent years have seen dramatic increases in the world prices for food commodities. The first half of the year 2008 saw the price of rice go up by 50% and generally speaking, similar increases in other food commodities such as maize, soybeans and wheat have been seen across the world, resulting in various forms of panic. In the Philippines, farmers have begun hoarding supplies of rice, while ...
When oil rises the comapnys are still responsible to make the same truck payment as when the prices were lower. This is why seeing more repossessions and liquidations are common. This is causing truck owners and operators to make difficult decisions. Many indepdent owners are faced with the decision of staying in business. Other owners have taken a different approach to the rise in crude oil. They are moving away from larger trucks with less horse power. This stratigy will save the drivers money on fuel cost which can make up the difference with higher fuel prices.
Another stagradtigy that these truck drivers have taken is changing there driving routes. By running shorter routes the truck drivier will not have spend as much on gas. They have also changes driving schedules from multiple night stops to day routes. The rise of crude oil has had an effect on the sale of trucks. Now, sales of the more expensive used trucks ($60,000$80,000) in our markets could best be described as currently “soft. ” Sleeper units with large horsepower engines are not nearly as easy to sell as the less expensive lower powered units.
Based on average hauling costs with fuel prices soaring, operating costs on high horsepower engines may add $80,000 to $100,000 in additional fuel costs per year. Truck owners and operators can’t necessarily cover those operating cost increases in today’s market, placing many of them in very difficult positions. By comparison, sales in the middle market (units with a value under $60,000), are still very robust. This market is the one most likely to benefit from a change in purchasing strategy by owners and operators, to these more fuel-efficient models. Castagna, 2008) Spending money on larger trucks with bigger engince has declinded with the rise of crude oil. Many comapanys have opted to spend money on smaller and more efficient trucks. The rise of crude oil has also effected the sales of trucks. With comapnays no buying or spending as much on a truck has hurt the econonmy. High desiel prices are a consequence of capitalism. As all fuel prices have been going up people are blaming the federal govenerment. They believe the president has influence of derterming the outcomes of tensions betwwen Israel and Iran.
The Essay on Standard Oil Policy Company Power
Policy as defined by Webster is a principle, plan or course of action, as pursued by a government, organization or individual. In the case of this paper, we will be dealing with policies with regard to government, initiated by various people of the state, particularly the American government and the United States of America. Policy-making is an integral part of governmental duties that is critical ...
Some people blame incrased prices based on fears around the world. It all comes down to one thing to blame, capitalism. Calitalism can be great to an economic system because of its emphasis on efficienc and inbradible success rate at allowing those who control the means of production and resources to meet the demands of those with purchasing power. Capitalism is constantly evolveing and will impact the gap between current and future goals on oil prices. The top five Oil and Gas companies are: Saudi Aramco, Gazprom, National Iranian Oil Company, ExxonMobil and PetroChina.
These company work together by using some sort of scare tatic in order to raise fuel prices. Take ExxonMobil for example, these companys have combinded forces in the United to States. These companies tell the American people gas prices went up due to the fact that there oil refineories are under maintaince. As a result gas price increase Where as in the 1990’s when these were two serpeate companies they had to compete with each other and prices were much lower. The growth in capitalism has increased since the merge of these companies.
ExxonMobil basically run a monopoly on United States oil and the future does not look bright for lower fuel cost. The trucking industry enjoyed a markedly different year in 2012 than it had in the four years prior. After suffering a significant loss in freight volume and revenue, the industry was finally able to recover due to an increase in demand for both long-haul and regional truckers. Many of carriers that were able to return to profitability after coming uncomfortably close to filing bankruptcy points to recovery and prosperity in the industry. The future looks bright for truckers across the U.
S. , there are always areas of uncertainty that must be approached with caution when trying to determine how well the industry will fare over the next year. Regulations have always restrained the capabilities of the industry and required carriers to find a way to work as efficiently as possible without going against laws put into place to keep the public and those working in the industry safe. Capacity restrictions that are set to be put into place sometime in 2013 may put a strain on the industry. If the government does not find ways to lower fuel prices the economy will suffer in the future.
The Essay on Oil and Fuel Prices
Since 1980s, the price of fuel and oil has assumed an upward trend. The price of crude oil per barrel was being sold at 40 dollars. In 2007 it was 92 dollars and in February 2008 the price per barrel hit 103 dollars. The rise in oil and fuel prices has led to the rise in the living standards as most commodities are either directly or indirectly affected by it. Many items that are used in our homes ...
