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.
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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.