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Rising fuel costs could push some truckload carriers into bankruptcy: analyst
CNN Money ^ | February 25, 2008

Posted on 02/25/2008 1:40:32 PM PST by yorkie

Truckload carriers are increasingly turning to factoring companies to help ease cash flow difficulties brought on by higher fuel prices, and some firms could be headed for bankruptcy, an analyst said.

'One trucking service provider noted that roughly 30 to 40 carriers currently do business with factoring companies, which is a significant increase,' Wachovia (NYSE:WB) Capital Markets analyst Justin Yagerman wrote in a note to clients Friday.

Diesel rose 12 cents per gallon to $3.40 as of a week ago, up 91 cents from a year ago, according to the Department of Energy.

'We currently expect high diesel prices coupled with tractor licensing and prepayments (for items such as insurance policies and tolls) to be a catalyst for truck capacity to exit the market' in the first half of the year, Yagerman said.

(Excerpt) Read more at money.cnn.com ...


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To: cinives

That’s OK, it’s a good thing all the Mexican trucking companies will do it for less...

So true! Wonder who’s next?


21 posted on 02/25/2008 3:02:46 PM PST by Isabelle
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To: yorkie
The crisis is fuel, period. What POS politician will take this on? He/It who does, wins.

Watch as this economy and the incredible shrinking green back (or whatever color it is) comes to a screeching halt, as the government bows to environmentalists, and we continue to be the oil producers bitches.

Kiss your 401k goodbye....AGAIN!

This country, and its politicians, are in the bag for foreign leaders. Shaking HEAD.

22 posted on 02/25/2008 3:08:47 PM PST by gathersnomoss (General George Patton had it right.)
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To: trane250

So, how do you propose we ship freight across the country? Please help me to understand.


23 posted on 02/25/2008 3:10:01 PM PST by gathersnomoss (General George Patton had it right.)
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To: an amused spectator

The trucks aren’t vanishing and the drivers aren’t going to work as cashiers if they can help it. Not one speck of freight won’t get delivered at the then-prevailing rates — it’ll just be better-capitalized trucking companies that do it after the bankruptcies and repossessions.

As always, infrastructure industry workouts lead to higher rates, as it is the weak hands (like the telecoms and airlines that went in during 2001 and 2002) which have to fold while the strong hands can simply sit their fleets when buyers demand negative-gross-margin rates.


24 posted on 02/25/2008 3:16:17 PM PST by only1percent
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To: yorkie

I hate the Arabs.


25 posted on 02/25/2008 3:26:29 PM PST by montag813
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To: only1percent
Okay, we just did the National Date Festival and Riverside County Fair , here in Indio, CA. Ten days of mediocre boredom... I pity the food booths. SOme had their percentages up, but thats because they had to jack up those food prices considerably.

That that breakfast burrito that last year was 5.50 a pop. THis week it was 7 bucks. Pop? THe large went from 3 buck to 3.75-4 bucks. We are talking movie theater prices here...

Everywhere things are up... Gas hits us hard. But imagine a carnival that has to run those diesel generators..

ITS going to be an ugly year.

26 posted on 02/25/2008 3:41:43 PM PST by abigkahuna (Step on up folks and see the "Strange Thing" only a thin dollar, babies free)
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To: All

And Virginia in thier newfound democrat wisdom just passed a new 2% tax increase on fuel come April. Raac is coming in @ 3.40 plus and rising on diesel. Labor services will now be taxed come April as well.

With the current prices in fuel, city business licenses have doubled causing another 1 cent increase in tax liability per gallon.

I feel for the consumers. It is causing everything to go up.

Housing sales down. Home prices down. Fuel prices up. Where is inflation really at? Couple the cost of transport including delivery entities increasing fees and new/increased hidden taxes on fuel and we got problems ahead folks. big problems.


27 posted on 02/25/2008 3:48:44 PM PST by commonguymd (Now What. No real conservative in the race.)
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To: gathersnomoss
So, how do you propose we ship freight across the country? Please help me to understand.

As far as fuel goes, a train can haul a ton of freight 3 times farther per gallon than a truck can. That's is why the railroads are making a comeback.


28 posted on 02/25/2008 3:52:39 PM PST by bjs1779
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To: 1rudeboy

Ping

There are a whole bunch of decent trucks sitting on dealers/bank repo lots, realllly cheeeep. You game?


29 posted on 02/25/2008 4:07:22 PM PST by investigateworld ( Abortion stops a beating heart.)
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To: abigkahuna
That that breakfast burrito that last year was 5.50 a pop. THis week it was 7 bucks. Pop? THe large went from 3 buck to 3.75-4 bucks. We are talking movie theater prices here...

Food is going to a problem I think. And not just the price of it. We have record low stockpiles of grain since statistics have been kept. The American farmer is in no mood to limit exports in order that we do not go hungry. As you say, it could get ugly.

30 posted on 02/25/2008 4:09:16 PM PST by bjs1779
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To: bjs1779

You’re free to buy as much grain as you like and then you could sell it or give it to whom ever you wanted. Of course, you would lose you ass if you did it on a large scale, much like farmers who sell their crop for other than the best available price.


31 posted on 02/25/2008 4:14:35 PM PST by Mr. Lucky
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To: Mr. Lucky
You’re free to buy as much grain as you like and then you could sell it or give it to whom ever you wanted. Of course, you would lose you ass if you did it on a large scale, much like farmers who sell their crop for other than the best available price.

You sound like a person that would've never believed in 100 dollars for a barrel of oil either and the pain it causes.

http://www.freerepublic.com/focus/f-news/1975646/posts

32 posted on 02/25/2008 4:35:59 PM PST by bjs1779
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To: trane250
As an aside, our freight transportation system is almost 100% petroleum dependent. This is a recipe for disaster, but the congressional mealy mouths don’t seem to recognize the problem.

What are we going to do, bring back coal fired stern wheelers on the rivers and great lakes and coal fired locomotives on the rails? (I think the later would be kind of cool. Dirty, but cool. :) I'm old enough to remember the last of the heavy oil fired steam locomotives. Much more impressive than the diseil electrics of today. I lived about 1/4 block from the Burlington main line. Those old engines really made the house shake. Very comforting in it's own way. I miss 'em, but I also miss the trains in general. When we moved from that little house, we moved to one where the Rock Island main line was where other peoples' alleys were, but by them I think the steamers were gone. Now the Rock Island Line is gone too, and now it's route is a concrete biking and walking trail that runs behind my mother's house.

33 posted on 02/25/2008 4:41:18 PM PST by El Gato ("The Second Amendment is the RESET button of the United States Constitution." -- Doug McKay)
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To: yorkie
So why isn’t a gasoline tax cut in the works? Government is the real profiteer off the price of gas/oil. Maybe government wants big trucking like they wanted big agriculture. One would think that a conservative candidate who still sits in the Senate would see a gas tax cut as something people would VOTE for him.
34 posted on 02/25/2008 4:46:02 PM PST by Just mythoughts (Isa.3:4 And I will give children to be their princes, and babes shall rule over them.)
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To: Just mythoughts
So why isn’t a gasoline tax cut in the works? Government is the real profiteer off the price of gas/oil. Maybe government wants big trucking like they wanted big agriculture. One would think that a conservative candidate who still sits in the Senate would see a gas tax cut as something people would VOTE for him.

The government is really no different from the mafia. Well, they are in one way I guess.... They can't be indicted for racketeering.

35 posted on 02/25/2008 5:01:56 PM PST by bjs1779
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To: El Gato

Rock Island Line - are you talking trains?

I’ll bet it’s the one that ran behind my grandparents house in Iowa.


36 posted on 02/25/2008 5:05:18 PM PST by yorkie
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To: only1percent
Analysis of rail freight shows two strong hands equal higher rates. I’ve been buying freight in railcars since ‘81 and can tell you that base rates are being jacked out of sight and no negotiation is possible; its pure take it or leave it.
37 posted on 02/25/2008 5:32:38 PM PST by Eric in the Ozarks (ENERGY CRISIS made in Washington D. C.)
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To: bjs1779

Well, you’re also free to buy as much $100 oil as you want and distribute however you please. The trouble with re-distributionists is that they’re always willing to re-distribute someone else’s money.


38 posted on 02/25/2008 6:49:06 PM PST by Mr. Lucky
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To: yorkie; gathersnomoss; bjs1779; El Gato
Bring back the GG1's!
39 posted on 02/26/2008 11:46:26 AM PST by trane250
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