Monday, December 22, 2008

Will Diesel Prices Be On The Rise Again?

Freight broker or freight broker agent may be your solution since diesel prices will most likely be on the rise again, along with gasoline and home heating fuels. This could happen as early as January 2009. Why? Because "OPEC last week agreed to cut production quotas by 9% in order to revive prices as a global recession reduces demand for crude. The group agreed to a record 2.46 million barrel-a-day cut at a meeting in Oran on Dec. 17. The 13 members are next scheduled to meet March 15 in Vienna."(dated 12/21/08) This story can be found at: http://www.bloomberg.com/apps/news?pid=20601087&sid=ay4FXfvFpiBw&refer=home
Just where does this leave the Trucking Industry? Paying 90 cents or more per gallon than autos will. It is rumored that gasoline prices will be around $4 per gallon by the end of December 2008 or the first of January 2009 and reach about $12 a gallon by June or July of 2009. Hopefully it is just a rumor, but who knows. If the rumor turns out to be for real, the Trucking Industry will feel it the hardest. Why? They already pay higher road use taxes, insurance and fuel prices. Look around you, diesel prices are anywhere from 75 cents to 95 cents per gallon higher than gasoline right now. What are truckers doing about it? Leaving truck driving to become freight brokers or freight broker agents. This is one reason why you are seeing freight broker training classes, schools and academies popping up all over the place. Truckers who are just flat out tired of higher fuel prices, having to fight for a decent rate, or settle for a lower rate in order to keep their trucks moving, are getting out of the business. And I don’t blame them I would too under these circumstances. And now, DHL is leaving the US and going International as of January 2009. What is going to happen to their roughly 9500 drivers? If they want to stay in the Transportation Industry, they will either find a new driving job or they might look into freight broker training. The freight brokering side of the Transportation Industry may take time to break into and build up, but there can be a lot less headaches and better rewards in many areas.
Copyright 2008 Jack Martin
a1freighttraining.com

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