Posted on 10/21/2022 6:08:32 PM PDT by MtnClimber
America’s shelves are stocked and packages mailed because of truckers—and there’s an earthquake coming to the world of American diesel.
During COVID, trucking in America slowed, leaving many shelves empty. However, no matter the madness, there were enough truckers hitting the road for Americans to have food in their stomachs, gas in their cars, and clothes on their backs. However, in less than a month, it’s entirely possible that trucking will become too expensive for many truckers. Why? Because the real emergency isn’t rising fuel prices; it’s rising diesel prices.
This is a story that’s been on the periphery of my mind for several months now but, somehow, there was always something of more pressing importance (or, sometimes, purely amusing interest). However, when you learn that America theoretically has only 25 days of diesel left, you suddenly perk up and start taking an interest.
[snip]
According to the EIA, the US now has just 25 days of diesel supply, the lowest since 2008; and while inventories are record low, the four-week rolling average of distillates supplied - a proxy for demand - rose to its highest seasonal level since 2007.
(Excerpt) Read more at americanthinker.com ...
No diesel means supply chain issues for almost everything, including food.
Diesel seems to be subsidizing gas. Yesterday gas went down 20cents but diesel was up. And diesel never went down like gas did.
I am not worried about anything this government is doing any more. This is all insane and no one cares enough to gather in crowds to demand something be done. If others, don’t care, I am not going to be manipulated into caring. Stuff it.
Diesel is running $5/gal locally and had gone up about a dollar a gallon in the past 10 days.
Why wouldn’t truckers just raise their price?
I just mailed a VERY small parcel to my kids in CA via UPS (<2 lbs) and it cost almost $16 for ground service. Hell yeah prices are going up! Even a few months ago that little thing wouldn’t have been more than $10-11. Thanks, Joe!
On my way back to Florida from Maryland on Monday, I talked to a trucker at a travel plaza (formerly known as a truck stop) in Virginia. He laid the problem out more succinctly than most people could.
One problem, among others, is that the refining process produces about 1 gallon of diesel for every 2 gallons of gasoline, and that relatively rare diesel is used in both trucks and trains. So as diesel prices rise, the cost of just about everything else rises as well.
The only things using gasoline are automobiles and light trucks (pickups), as well as small engines, such as lawnmowers. Everything else that moves uses diesel. so we’re screwed, and so are the truckers. The guy I talked to has a $13,000/month expense to keep his truck moving. Prior to President Butt-Head, I’m guessing it was maybe half that or a little more.
Home heating oil is also the same thing as diesel and that has gone through the roof recently.
We just got our tank filled up so theoretically we are set for this winter.
Farmers use diesel for farm equipment and some farmers did not bother to plant crops due to the high diesel prices.
Has limited my rv ops. Only made one major trip this summer. It will require the dear leader out of office before we see any improvement. Looks like I will be on a forced savings program the next 2 or 3 years. So who says this bidet admin has no redeeming value. Save while you spend is a discipline that benefits all.
The problems are going to start well before supplies start to run out. Trucker contracts and pay rates don't change with the price of diesel, or at least not quickly as they need to in order to respond to changes in prices.
There's a price for diesel that above which, it's no longer worth starting up a truck to pick up a load, and we're getting really close to it. At that point, existing contracts either get cancelled/abandoned, renegotiated, or completed for a net loss.
Some truckers need to stay rolling to pay their insurance/truck payment/etc... and will take routes for a loss at least for a while hoping to ride out the bad times. Larger companies will absorb losses, maybe take an insurance hit or sell off assets to keep their balance sheets green. The others? Hopefully we won't find out, but the trend would almost certainly be toward bigger companies doing horizontal and vertical integration, not toward independent truckers and owner/operators.
Those impacts wouldn't be felt as strongly in the short term, but they would be felt greatly in coming years well past the point where any corrections or changes would matter. That's far more dangerous.
“ I am not worried about anything this government is doing any more. This is all insane and no one cares enough to gather in crowds to demand something be done. If others, don’t care, I am not going to be manipulated into caring. Stuff it.”
I’m with you, brother!!
A small ray of hope coming in November but like always, I suspect the effort with new leaders will fall short and spiral right back to same old - same old. Seen it too many times.
Is this where I say duh,,
My poor diesel truck is suffering.
$97 to fill up our Sprinter van.
Why would a farmer fail to plant a crop because of diesel prices?
You don’t think they are going to steal it again and turn us into Venezuela.
I will kill for my rights. For my children, my grandchildren
My God-given rights. I will fight to my deat
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Pack a lunch and kiss your babies and tell them what a dirtbag you were when America fell.
Before Diesels took over in the 60s, big trucks, delivery vans, and farm equipment ran on LP gas. It may be time to back again.
Yes, no, sort of, maybe.
The USA is a big exporter of crude oil and refined petroleum products.
In 2021, we exported 8.54 million b/d (barrels per day) of petroleum. Same year, we exported 2.96 million b/d of crude oil.
As of March of 2022, we have been exporting 11.04 million b/d of diesel.
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