Rising Cost of Fuel Affecting Trucking Industry

The recent difficulties in Libya have been the focus of quite a few news agencies around the United States, and there seems to be (at long last) some news from that area of the world that could point towards things looking up…



The United Nation’s proposal towards military intervention in the Libyan situation has apparently pushed their foreign minister, Moussa Koussa, into proposing a cease-fire, and for governmental forces to cease their military operations against the rebels, if for no other reason than to prevent UN forces from entering and possibly escalating the conflict.



President Obama, when asked for his views on the situation, stated specifically that, "I also want to be clear about what we will not be doing – the US is not going to deploy ground troops into Libya. And we are not going to use force beyond a defined goal, specifically: the protection of civilians in Libya." This resolution has naturally calmed some of the politicos that have been vehemently against both the Iraq situation and further United States intervention in that part of the globe.



Whether it was the President’s resolve to not commit ground troops, or the cease fire Gaddafi’s regime has declared, this situation has had beneficial effects for areas of the corporate sector that would not (at first glance) be effected. Crude oil prices, having been steadily rising (to the tune of approximately twenty seven percent over the last month) have dropped across the board, with the New York Mercantile exchange reporting a nearly three percent drop in total prices. London’s ICE Futures exchange reported a similarly welcome drop of fifty-five cents per barrel.



This will no doubt relieve many within the trucking industry as, despite the many new regulations and possible technology updates that those wishing to comply with the CSA 2010 will have to follow, the rising price of diesel is one of the most prevalent and pernicious concerns that drivers face. Other concerns, such as the regulations regarding Hours of Service, are either being discussed or (if worse comes to worse) can be planned around, but the rising cost of fuel is a difficulty that may prove to be irresolvable for quite a few smaller carriers or owner-operators.



However, the possibility of mitigating the rising costs of fuel in other areas such as maintenance or employment does exist: one such case is the costs of kingpin and fifth wheel maintenance. CSA 2010 did mandate much stricter guidelines as to the acceptable wear that a trailer kingpin is allowed before a trailer is sidelined, but where a worn kingpin may have originally been ignored until replacement was the only option; the possibility of a much more cost-effective trailer kingpin repair exists. Kingpin repair can be performed more quickly, and such refurbished kingpins often perform just as well as those ordered direct from the factory.