Transportation industry feels the pinch of escalating fuel prices

Transportation industry officials are warning that rising fuel costs pose an increasing threat to the viability of many small trucking firms. Tiffany Wlazlowski, spokeswoman for the ATA, a national trade association for the trucking industry, says fuel costs represent up to 25% of operating expenses for most of its motor-carrier members. "High fuel prices are having a tremendous impact on our motor-carrier's bottom line ... our industry is expected to spend $100 billion on fuel this year." Wlazlowski says.

There are more than 560,000 motor carriers, she says, and 95% of them have 20 or fewer trucks. "So, essentially, the trucking industry is a small-business industry. The smaller your business, the higher percentage of your operating costs that fuel represents," she says.

(2006-07-12 12:20:48 SGT) [Energy] Permalink

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