Truck Drivers Falter Under the Weight of High Fuel Prices

The rising price of diesel hits independent owner/operators the hardest

Bubba Melzer, an independent trucker from Crosby, has lost about half his income due to high diesel prices.
Paul Knight
Bubba Melzer, an independent trucker from Crosby, has lost about half his income due to high diesel prices.
A Houston police officer checks the weight of a tanker truck.
Paul Knight
A Houston police officer checks the weight of a tanker truck.

Bubba Melzer swings open the door of his 18-wheeler, walks over to the diesel pumps at the Flying J truck stop and begins to fill one of the 200-gallon tanks on his truck.

While the truck is fueling, Melzer removes a brush from a bucket filled with soapy, gray water. He scrubs the windshield, steel and chrome on the big gold International, cleaning away the bugs and muck.

The diesel pump clicks off. Melzer's tanks were about half full when he pulled into the truck stop on Houston's north side, and it took about 230 gallons to fill both tanks.

The price: $933.

"A year ago, this would've been $400," Melzer says. "This should be $400."

Melzer is an independent driver, known as an owner/operator. The truck is his; he doesn't drive for any specific company. He negotiates his own freight contracts and pays his own costs. He thinks that owner/operators are the heart of the trucking industry.

The International pulls a 65-foot flatbed trailer. Two bald eagles, painted in red, white and blue, streak down the sides of the rig.

Melzer loves his truck, but there's not much good he has to say about the current state of the trucking industry. Shipping companies are paying less for loads, freight brokers are collecting a higher percentage and government regulations are increasing each week.

The government also wants to open the border to Mexican trucks. Melzer thinks it's a bad idea, and one more thing that he knows will hurt his bottom line.

As Melzer stands by his truck, a pale white 18-wheeler pulls in front of Melzer's International and stops. The driver, wearing a company uniform, steps out of the truck and walks toward the Flying J. Melzer takes a couple steps toward the driver and shouts.

"Then you got assholes like that who park in front of you so you can't go anywhere," Melzer says, waving the brush. The company driver never looks back.

The rising price of diesel is by far the biggest problem facing Melzer and other independent drivers, who bear the heaviest burden of fuel costs. If a driver is lucky, he can negotiate a fuel surcharge from the shipping company. Even then, fuel costs are rarely covered.

To drive the big International, with diesel at $4 a gallon, it costs Melzer about 80 cents a mile in fuel. Some loads Melzer hauls, he's making little over $1 a mile. A year ago, Melzer cleared about $3,000 a week. Today, he's making half that, and his costs continue to increase. He's had to accept any load he can get to survive.

Before stopping at the Flying J, Melzer had already worked about six hours, hauling two local loads across Houston. His trailer was loaded with heavy machine parts, destined for Wyoming.

"The worst part is," Melzer says, "I still have to drive 1,400 miles before I even think about lying down."
_____________________

Dick McAbier thinks most Americans take truckers for granted.

McAbier, a 68-year-old driver from Canton, Ohio, has made a living hauling freight across a triangle of roads from Canton to Houston to Miami and back. He's driven more than one million miles in his career and never had an accident.

"You want to know what causes wrecks?" McAbier asks. "High fuel prices and pissed-off drivers."

Last year was McAbier's worst money year in a decade. He blames diesel prices and bad winter weather.

McAbier was recently in Houston picking up a load of lead-coated bricks for a cancer treatment center in Miami. The clinic was expanding its radiation room, and the bricks were needed for ­construction.

"We're not just driving apples and oranges," McAbier says.

The trucking industry accounts for about 70 percent of all long-distance freight hauled in the United States. Even cargo that is transported by plane, ship or train is moved to its final destination by truck.

Nationwide there are more than two million truck drivers, and an additional nine million jobs directly linked to the trucking industry. In Texas, one out of every 14 people works in the industry, making Texas a top-five trucking state.

Since industry deregulation in 1980, small companies and independent, owner/operators have flooded the roads. This portion of the trucking industry prides itself as a fleet of small businessmen and women who haul freight cheaper and faster than the large ­carriers.

That niche is changing fast. The price of diesel fuel has jumped by almost $2 a gallon since last year, and is still rising faster than most small companies and owner/operators can handle.

"There will be very good businessmen across the state that just hang them up because they're tired of dealing with it, and some will just not be able to keep up with the cost," says John Esparza, president of the Texas Motor Transportation Association, an organization that represents small trucking companies.

Many drivers already can't keep up. In the first quarter of 2008, 935 trucking companies in the United States went bankrupt or closed down, according to a report by industry analyst Donald Broughton. About 42,000 trucks, which represents about 3 percent of the U.S. industry, shut down.

Broughton estimates those numbers will increase as the price of diesel goes up. More trucks could leave the industry than in 2001, which was a record year for trucking company failures and truck repossessions.

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  • Joseph David Chase II 05/23/2008 3:04:00 AM

    My research has shown me that the biggest reason the price of oil is climbing so high (& it's only gonna get worse) is because the "federal" reserve is printing out money 24/7. The more money they print out, the less the money already in circulation is worth and the saudi's KNOW this. The "federal" reserve is NOT part of our government, they are a private-FOR PROFIT-entity that has usurped the ability to print our money. The "federal" reserve has been at the root cause of EVERY depression, recession, inflation, & WAR America has EVER suffered since even before they were the "fed". When the "fed" caused the great depression they started out by printing out money 24/7. Some of the money they used to make business loans on margin (that means they could call in the loan at ANY time & once called in had to be paid off in 24 hrs or be foreclosed on). Once the "fed" had the dollar devalued they called in ALL the loans AT THE SAME TIME, THAT'S what caused the run on the banks that combined with the devalued dollar, caused the great depression. The "fed" then took money OUT of circulation making money literally hard to find. America's industrial base helped pull America out of the great depression. America's industries are being sent over seas. In 2006 the "fed" stopped telling us how much money they are printing out. The "fed" is at the root cause of the mortgage crisis. Usurper bu$h (of the bu$h crime family) is trying to give the "fed" the ability to make business loans again. The bu$h crime family is the roots of the military industrial complex (another MAJOR threat to America). Prescott bu$h (prescott bu$h was an American nazi & made a LARGE chunk of the bu$h family fortune war profiteering for the nazi's against America & our allies)& members of the "fed" were in on a plot to assassinate Roosevelt & turn America into a fascist country. The military man they went to for the muscle to force America into fascism turned them in & Roosevelt let them go scott free in exchange for the new deal. The "fed" & the bu$h crime family haven't given up on trying to turn America into a fascist police state. Wanna know so more about the "fed" google Reagan's Grace Commission. Also see America: Freedom to Fascism, Money as Debt, The Money Masters, & Parts 2 & 3 of Zeitgeist which can be found at: http://groups.msn.com/impeachbushcheneyusurpation or http://groups.msn.com/911wasaninsidejob

 

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