My nursery loads are close to what they were in the spring, but not as many of them available. There are some who have been coming in trying to cut the rate. We chose not to participate in the rate auction. Of course, the rates have come down somewhat due to the lower fsc. Most everything else has seen a decline.

 

Merry Christmas!! :thumbsdown: Cheer up. This won't last forever.

 

I swear it was. I was dumbfounded when I found that out.

 

DOD adjusted the cost basis from 1.40 per gal. to 2.50 per gal. about a year ago, are you saying they chopped it again?

 

I'm not sure. But I hauled a military load at the end of October, and got $325.50 FSC on a 775 mile run. I hauled the same load yesterday, and got $93. In that time, the price of fuel did not drop that much.

 

Promise?

I am fortunate in that I negotiate most of my rates once a year and add a FSC of my own design onto them. So my "base" rates have not dropped but I sure miss my FSC. I guess this is one of the good things about being Local.

 

I can't say for sure but I think Dawn and the others were supplementing the fsc when fuel shot up, this was after the DOD did their thing. My guess is the agents quit doing that when fuel went back down, I won't haul DOD unless the fsc reflects the regular rate, it just isn't worth it.

 

It's the same ol' deal here. Real rates have fallen a little but not as much as I thought. When I took the fuel out of the equation, they were still $2.70/loaded mile compared to 6 month low of $2.50. My rates don't really get too low anyway because I just park 'em. I expect Jan, Feb to be bad tho.

 

It might be good for you guys but high fuel is what really gave this economic downturn a kick into high gear. I know I stopped spending when diesel got outrageous. (two of my trucks are diesel and my wifes is a 454 chevy :lolHeating oil is still high and that will stop me from spending as well.
Matter of fact I ran out of fuel last week (I wasn't paying attention) so I grab a few buckets and go get 20 gallons of diesel to put in the tank till I could a delivery and it turns out diesel is now cheaper than heating oil. WTF!

So in the long run I don't think high fuel benefits anyone, and I still say you can't have growth with high energy prices, it stifles it.

 

I think you are correct about the high fuel prices, RostyC. The problem we are seeing now is that freight rates have declined faster than the drop in fuel prices. That coupled with the slower freight has made it difficult to make as much money. With the slow economy people are not buying as much so there isn't the need for as many trucks to haul the freight. Unless people buy products there is not a need to replenish supplies. I think high fuel costs are the primary reason for the slow down. The banking problems are only a by product or effect.