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February 26, 2000
Truckers worried over gas pricesLocal truckers face hardships,as diesel pricescontinue to climbBy FRITZ BUSCH Journal Staff Writer NEW ULM -- As retail diesel fuel oil prices continue to climb, local trucking firms hope for the best and lament their dilemma. There was a ray of hope for those hoping for an end to rising prices Thursday, as a news report stated that Middle East officials are expected to increase production soon. However, the effects of that move will take some time before they are felt here. Meanwhile, prices remain at all-time highs in this part of the country. "A lot of people are eating it," said Marliss Meier, owner of Minnesota Valley Transport, of New Ulm. "Freight rates are based on $1.10 to $1.15 (per gallon) fuel, while the national average is over $1.54. You hope you can ride it out. We are continually negotiating with customers." Meier said there is no law requiring customers to pay fuel surcharges. Some truckers wish there was one. Regardless, freight rates will go north. Meanwhile, truckers seem to be bearing more than their fair share of pain from rising fuel prices since rates don't automatically rise when fuel costs do. "I am caught in the squeeze," said Pony Express owner-operator Marlin Huiras. "We take home less money every week and send along more money with the truck each week. Truckers are absorbing 50 to 100 percent of the fuel cost increase." Huiras said he hasn't lost any customers yet, but said he said a solution would be some type of indexed freight rate increase reflecting fuel costs. J&R Schugel Trucking Inc. Accounting Manager Jim Guldan said he is closely monitoring fuel prices across the country, in an attempt to reduce the amount of fuel bought in areas with higher prices. Guldan said fuel costs in Minnesota are about average compared to the rest of the country. Earlier this month, prices rose over $2 per gallon in New England states. George Forst of Forst Transfer Inc. said much of the profits from trucking are gone, the worst may be yet to come, and the situation is not unlike the agricultural price crisis. "It's about as bad as some of the farming economy now," said Forst. "I heard prices would peak in January and February, but I don't think we've seen the peak yet. I don't know what we can do. I hope the government steps in pretty quick. Forst said somebody is hoarding fuel and lining their pockets. It's bad for everybody, salespeople, commuters, and vacationers. Milt Fitzel, owner of Viking Land Transportation Systems, Inc., said the media gives truckers a bad name and keeps them from getting assistance. "The government comes through for the farmers, but we don't get in the spotlight when we get in the shorts like we are," said Fitzel. He said he hopes the problem is only temporary. He said owner-operators are taking the brunt of increase costs on empty back hauls that don't have fuel surcharges. Dave Gudgeon of Gudgeon Trucking said it's better to keep hauling even with lower profits since trucks don't make any money when they are shut off. Frank Bode, of Frank Bode Trucking of Courtland, said he doesn't think the state or federal government will do anything about the situation because he thinks there is plenty of fuel. "It's supply and demand," Bode said. "We went through this in the 1970s when we had to buy small amounts of fuel at different stations. That didn't work. Truckers shut down and that ended that."
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