Clear Full Forecast

Truckers Looking at Lower Income Because of Fuel Costs and Tax

By 250 News

Wednesday, June 18, 2008 04:11 AM

Prince George, B.C. - Logging has resumed in the woods in the Prince George region, but the activity may not be enough to keep some truckers in the black ink on their ledgers.
With diesel fuel at a record high and a 2.4 cent a litre carbon tax to be imposed in a couple of weeks, truckers, no matter what sector, are having to crunch numbers to see how their livelihood will be impacted.
P.G. Trucking Association President, Stan Wheeldon says the truckers are still working out the numbers “We are still waiting to see, down to the penny, just what kind of impact the rising cost of fuel and the tax will have.”
He says even those who have the fuel racking provision in their contracts are on the verge of losing money. Racking means the   contractors can revise their price based on the changes to the cost of fuel on a weekly or bi-weekly basis.   That is little comfort to many says Wheeldon as not all are covered by such a provision “Between 55 and 56% of the logging truck drivers are covered with a racking provision” says Wheeldon, “and there aren’t as many guys back in the bush.” The reduced number of drivers hauling from the bush is  a result of reduced demand for logs because of mill shut downs or curtailments.
He says as late as yesterday afternoon, the major licencees were still trying to digest the amounts the truckers need to make their work profitable. “This is the deepest hole we have ever been in ” says Wheeldon. 

Previous Story - Next Story



Return to Home
NetBistro

Comments

Income tax is on profits. I think the article really means the carbon tax?

A quick fix would be to say you spend $45 an hour on fuel and charge $100 and hour for service. If fuel goes up 11% then do a 11% fuel surcharge on the $100 an hour rate, so your now charging $111. If the fuel component only went up 11% then that is only $5, but your charging an extra $11 so now your making $6 dollars an hour more then you were before even after the higher cost of fuel (that of course needs to be passed on down), meanwhile the customer understands, the competition is going broke, and profits are up.
I wonder where all this is going, Fuel up every day, Food up too, my House Taxes are up
50% this Year for the house i live in for the last 30 Years, my Pension stays the same, amazing the Spin Gordie and the Gang are pulling, we are better off, he must be thinking of him self.
Are truckers the only ones that pay fuel to work? - There are many of us that have to pay their own fuel costs. I am a commission employee who puts on 100,000 km in a year and pay my own fuel - I know truckers have access to cheaper fuel than I do. Every time fuel goes up I also lose money - thats just a fact of life.

I love my job and it is my choice to do what I do for a living - same for a trucker.

Just remember - TRUCKERS aren't the only ones that buy fuel to work - they are just the most obvious ones for reporters to write on - dig a little deeper boys...
This begining of this article SHOULD read SOME logging has resumed...
In many places it has not even begun to resume, and a drive by Richie Bros. will show that beyond a doubt!
well thiland and china did some thing about the gas they stoped working till gas companys brought it down look it up on the internet, also in the 40 years i worked if you remember, we also stoped working for day and the goverments lost lots of money ,and they setteled fast so think about every one working pulls a stop working for 1 day, and the gas and oil will come down tell them bring it down to one dollar ,and keep it their or again stop working for 1day that our power people band to geather goverment and oilxgas are making big profits on the backs of the working people dont just talk about do it stop working 1day thank you
who can afford to stop working for a day?
"stop working" only works if there is no one else to step in and take your place or job and if someone is losing money when you stop. Right now the mills are losing so much money that it probably saves them money if the trucks didn't haul.

The commission employee needs to remember that most of these truckers (and loggers) have all had their rates cut in the last year just so they could keep working, and changing jobs to non-forestry is not really an option if you have a truck or equipment, because most owe the bank too much. You owe more than its worth so you just try to keep going so that you don't lose it all. As each mill closes, the price of used trucks and equipment just keeps dropping. Not a good line of work to be in...........
Great idea to stop work for one day. The alternative could be that we share rides and not buy gas for one week and two would be even better.

I'm retired but would buy a thank of gas to help. Or all the retired guys could picked the gas stations and refineries.

Cheers
Umm, bayleen2001, could I correct you about some things in China. These aren't my words, just look at a Forbes webpage about the price of oil in China, and what that gov't is tinkering with:

http://www.forbes.com/2008/05/27/gas-inflation-china-oped-cx_dhs_0528oilchina.html?feed=rss_news

There's lots of other articles about the Chinese gov't as you search a bit on the internet. I find that reading a few gives me a better insight in world issues, than a 1 minute soundbite on the evening news.

Not that this helps to soften the "payment at the pump" our truckers have to deal with. I'm not directly related to any trucker that has economic issues, but I can understand the worry they're having about their business.