$FUEL PRICES MAKES THE NEWS$

Yahoo news just ran an article on the effect the high fuel prices are having on the independent trucker and I think that the effect is virtually the same for small family companies. I hear it all the time as I visit the smaller auto transporters that are feeling the squeeze. Flying j has diesel listed on their website costing $3.879 a gallon

PA, Smithton I-70 & Exit 49 3.8790

I’m not sure at this point if it is good for my business or not. I install computer programs and one of the effects of this economy is that people tighten their belt and don’t spend on anything that is not absolutely necessary to try and make it through the tough times. That means that a set-up fee of $500 to $1000 that in the past would have been no big deal can squash or at least delay a set-up. The flip side of the coin is that in this economy everyone is looking for maximum efficiency and so some are realizing that the technology available can decrease stops and empty miles as well as decrease waste caused by missed exits and inaccurate routing so some see the computer as a tool to help them through this tough time. My big question is which effect will be stronger?

Saab pros has posted their rates including what the fuel surcharge will be at different fuel prices on their web site. We may see an upsurge of this type of pricing in the future.

saabpros.jpg

I wonder if they ever imagined they might have to add another tier above $4.50 a gallon.

  Fuel Surcharge:
  Diesel price at pump less than $3.00/gal. Base rate
  Diesel price at pump $3.01 to $3.25/gal. Base + 5%
  Diesel price at pump $3.26 to $3.50/gal. Base + 10%
  Diesel price at pump $3.51 to $4.00/gal. Base + 15%
  Diesel price at pump $4.01 to $4.50/gal. Base + 20%
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