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allan5oh · Posted: Sun Apr 06, 2008 4:35 pm Post subject:

The reason some countries have cheaper diesel is because they can produce all of their own supply, and they also have state oil companies.

Look at it this way, the major oil companies profits are 8% of their income.

At 4.00 a gallon, take 8% off, that's their cost!

Orangetxguy · Joined: 23 Jan 2007 Posts: 1981

allan5oh wrote: The reason some countries have cheaper diesel is because they can produce all of their own supply, and they also have state oil companies.

Look at it this way, the major oil companies profits are 8% of their income.

At 4.00 a gallon, take 8% off, that's their cost!

I was gonna laugh at you...but you are being serious..so I won't.

Just wondering...why did you post the price of fuel in Europe...but fail to post the taxes that are the largest portion of the cost of fuel in Europe??

Oil cost's the same, whether it is delivered in Europe or America. Refining cost's are close to the same, with the largest difference being taxes.

Taxes on a gallon of fuel in America run UNDER $1.00 per gallon. Based on the US dollar, taxes in most European countries are running at $4.35 per gallon and up.

As for the percentage of profit an oil company receives on a gallon of fuel...that is a well diluted mystery......for a reason.

no_worries · Joined: 18 Apr 2006 Posts: 863

The absurdly low price paid by consumers in places like Venezuela is due to government subsidies.

wildkat · Posted: Mon Apr 07, 2008 6:43 am Post subject:

Gents... I feel I need to wade in here...

Up here, in Western Canada, we are paying an average of $1/litre of fuel, which is pretty close to $4/gallon. I live in Alberta, we produce more oil than Saudi Arabia, matter of fact we EXPORT a great deal of our oil to YOU!

What I can't figure out... you guys down there are paying roughly what we pay for fuel, but why are your rate so much lower?? I work for an LTL carrier that runs the North... As most of you know I run in the Arctic, & fuel is extremely high there. Now I have seen many of you bash lease operators, personally I don't really know what the difference is, we all own our trucks right? Well, except for theose poor guys on the company "never never" plans. Up here there are very few what I would term as independents. Why? Well, for one it is very hard to get an operating authority, & insurance rates are prohibitave if you have just one or two trucks... for instance, if I tried to get my own authority I would have a mirade of hoops to jump through(I have checked) & my insurance would nearly double.

The company I am leased onto treats me well, my fuel is capped at 1/3 of the posted price (FSC in a round about way) my insurance is based on the miles I run (and I run alot of them) about $800/month, the company pays for my plates & WCB, I have benefits & senority, and I get a safety bonus at the end of each year. I'm not sure I want to post my mileage rates, because I am not sure anyone will believe me, but, I suppose in the interest of full disclosure I will... My rates start at 1.30/mile for 5 axles, which I do about 5% of the time, and that is the rate I get if I have to bobtail somewhere, & it goes up to $1.70/mile for Rocky Mountain Doubles which I pull 95% of the time. I get the same rate whether I am loaded or empty. And being our HOS rules are slightly different I average about 16,000 miles/month. I have no complaints, we are busy...always.

So again I ask, what is wrong with being a lease operator? I have all the same responsibilities as the independents, but just a bit less of the headaches.

kblickster · Joined: 31 Oct 2006 Posts: 77 Location: NC

These stats are from 2004 for those that want to compare apples to apples.

Population:
UK 59,866,864
US 293,655,392

Land Area
UK 241,930 kilometers
US 9,158,960 kilometers

Average Miles Driven per capita
UK 7000
US 10,000

Car Ownership per 1000
UK 463
US 833

Average Miles per gallon (new car)
UK 37.83
US 24.6

The US has more vehicles per capita, more miles to travel to feed its masses, and has less fuel efficient vehicles. At 346 million gallons per day the US uses more fuel per day than the following countries combined:
Total fuel consumption per country (million gal/day)
Japan 41.8
China 35
Canada 27.6
Russia 24.1
Germany 24.1
Mexico 23.6
UK 18.7
Italy 14.5
Iran 14.1
Australia 13
France 11.3
Brazil 11.1
Saudi Arabia 10.7
Indonesia 1.1
Venezuela 9.5
India 7.4
Spain 7.4
Taiwan 7
S Africa 7
S Korea 6.7

no_worries · Joined: 18 Apr 2006 Posts: 863

wildkat, I would speculate that your rates are higher up there because you've got a higher demand for trucks and fewer of them. That economy, from what I hear, is going great guns and they need all the trucks they can get. We're slowing down here and we had too many trucks to begin with. For many down here, the rates they're getting don't have anything to do with their costs.

wildkat · Posted: Mon Apr 07, 2008 5:30 pm Post subject:

no_worries wrote: wildkat, I would speculate that your rates are higher up there because you've got a higher demand for trucks and fewer of them. That economy, from what I hear, is going great guns and they need all the trucks they can get. We're slowing down here and we had too many trucks to begin with. For many down here, the rates they're getting don't have anything to do with their costs.

You may be right about that...we have a severe driver shortage here, especially in Alberta, where, as you say, our economy is hotter than you know where! Personally I could do with just a bit "less" busy some days, but mostly I don't complain... I remember a time when unemployment was at 25% & interest rates were about the same...I would NEVER want those days again... I HAD a job back then too...but it was tough!

no_worries · Joined: 18 Apr 2006 Posts: 863

Ride it a few more years and retire, right? :wink:

wildkat · Posted: Wed Apr 09, 2008 3:47 pm Post subject:

no_worries wrote: Ride it a few more years and retire, right? :wink:

YUppes NW...am gettin older now...and am wanting to slow up some in the next couple of years

Matter of fact our Director of Operations asked me the other day what my future plans were...

I looked him square & said...well I have 32 months left to pay on my truck, then I'm gonna run her for 5 more years... then that purty purple Pete is gonna become the nicest lawn ornament you ever saw, cause I'm gonna park her in a promenant spot in my yard & plant flowers around her! :D :D :lol: :lol: :lol: :lol:

heavyhaulerss · Joined: 29 Jan 2007 Posts: 589 Location: north alabama

Quote: If you cannot survive, the government is NOT here to bail you out are you kidding. bailing out the forclosures, bailed out bears & sterns. the govenment is always looking for someone to bail out.

no_worries · Joined: 18 Apr 2006 Posts: 863

C'mon now wildkat, you're Canadian. I expect you to stretch that puppy out, turn it into an RV, and join the rest of your countrymen down in AZ during the winter :lol:

Colin · Joined: 19 Jan 2005 Posts: 1422 Location: Kennewick, WA

Quote: If you cannot survive, the government is NOT here to bail you out heavyhaulerss wrote: are you kidding. bailing out the forclosures, bailed out bears & sterns. the govenment is always looking for someone to bail out.

That's what I was going to say. Don't forget some of the airlines after 9/11. BILLIONS in aid.

15 BILLION

actros · Joined: 12 Mar 2008 Posts: 14 Location: France

Hello, I'm a French trucker.

If you want to compare prices, I give you some informations.

Diesel in France = 1,30 �/ liter = 4,92 �/ gallon = 7,74 $/ gallon.

Tractor full option with a 480 hp ( cabover ) we have not conventional tractor = 90000 � = 142000 $.

Trailer dry van ( 48' ) = 30000 � = 47200 $.

Insurance for tractor, trailer, driver and goods ( annualy ) = 5000 � = 7800 $.

Tractor and trailer tires = 5700 � = 8900 $.

Maintenance and repair ( annualy ) = 7000 � = 11000 $.

Driver income net = 27000 � = 42500 $.

Income taxes, health insurance, and other = 13000 � = 20500 $.

Phone, GPS, = 2400 � = 3800 $.

Meal, shower = 9900 � = 15600 $.

The prices may change if you drive for a small or for a big company.

Dejanh · Posted: Sat Apr 19, 2008 4:49 pm Post subject:

80% of the fuel cost in Europe is TAXES, that is why European Union is riding on a high inflation as we speak and thats why their Euro is so strong, but not for long.

Truckers DONT PAY that amount you mentioned Allan, most of those contries have capped diesel costs for commercial use, kind of like Mexico has.

When i was there in December of 07, Italy just had a strike where the whole contry was paralized for a week because of rising diesel and France had one as well 3 years ago I`believe which included farmers too.

Point is not about your fuel surcharge Allan, mine is great too but the whole costs goes much deeper than that.
If the fuel surcharge you're getting is great, you're still LOOSING money thru INFLATION that skyrocketed while a BASIC pay of people has not followed.

no_worries · Joined: 18 Apr 2006 Posts: 863

Actros, thanks for posting that information. It's always interesting to compare numbers from other places. I have a few questions.

The price for a dry van is much higher than ours ($25,000). I've heard you use mostly soft-sided trailers over there, is that true? If so, the cost you give would be about the same here.

Is that net income figure before taxes and health insurance or do those costs come out of the $42,500?

How many kms do you drive in a year?

What do you get for fuel mileage in your truck?

Thanks.

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