`ONE-TWO PUNCH' FROM GOVERNMENT HITS TRUCKING INDUSTRY

A "one-two punch" by the federal government at the trucking industry has prompted a weeklong shutdown by independent owner-operators, a local truck-stop manager said Thursday.

The Associated Press reported the independent truckers staged scattered protests over an increase in the price of diesel fuel by parking their rigs. Some truckers have stayed off the highway to avoid possible incidents of violence.

Locally, the impact of the protest by independent truckers seems to be minimal. A spokesman for Supervalu, formerly Wetterau Foods of Scott City, said truck deliveries to the giant distribution center are continuing without interruption.

Some 4.5 million truckers move everything from lettuce to furniture cross country. At least 500,000 of them are believed to be independent owner-operators, those who own their own rigs and carry loads obtained by brokers or operated under a lease with trucking companies.

Ed Schilling, manager of Rhodes Travel Center, I-55 and Airport Road, said Thursday that sales of diesel fuel were off by 40 percent during the past 24 hours. "Our retail sales are about normal, but sales of diesel fuel are way down," said Schilling.

But even as Schilling spoke, rigs were starting to line up at the fuel-pump islands outside the truck stop. Schilling speculated that many truckers are traveling during daylight hours only, in three-to-five-truck convoys for safety. Late in the day, they start heading for truck stops to fuel and park overnight to avoid traveling at night and risk violence.

"So it's possible we may see that drop in fuel sales will be made up before the night is over," he said.

Diesel fuel prices have risen as much as 40 cents a gallon in some parts of the country because of a 4.3-cent increase in the federal fuel tax coupled with a shortage of low sulfur diesel fuel that's now required by the Federal Environmental Administration Agency.

"The federal government has delivered a one-two punch to the trucking industry, truck stops and the independent owner-operators the past 60 days," said Schilling.

"Punch number one is the tax on No. 1 and No. 2 diesel fuel went up 4.3 cents per gallon on Nov. 1. Punch No. 2 is the EPA requirement for low-sulfur diesel fuel for highway use went into effect on Oct. 1. That caused the price of diesel fuel to jump as much as 16 cents a gallon because of a shortage of low-sulfur fuel in addition to the increase in the fuel tax."

Schilling said diesel fuel that was selling two months ago for 90 cents a gallon was as high as $1.20 a gallon until recently. In California the price of diesel fuel went as high as $1.50 per gallon but has dropped back to $1.40 per gallon.

Schilling said the cost of refueling a semi-truck isn't the same as filling up the family car or van. "The newer rigs truckers drive today have fuel tanks that hold up to 200 gallons of diesel fuel. Some of the older, less-fuel-efficient rigs carry up to 350 gallons of fuel. That means at least a $350 fuel bill each time they refuel," Schilling explained.

"Truckers are also upset that none of that 4.3-cent increase in the federal fuel tax will go to the federal highway trust fund. Instead it goes into general revenue, where it can be spent for anything. They don't mind the switch from high- to low-sulfur fuel as much as the tax increase going to general revenue instead of improving roads and bridges."

Some relief from the high fuel costs may be coming for the trucking industry. According to the National Private Truck Council, (NPTC) the Interstate Commerce Commission on Oct. 29 said it will permit carriers to file for special rate increases to offset skyrocketing fuel costs. The NPTC said last week the ICC also provided relief to owner operators by ruling that the increases must be passed on to those bearing the cost of the higher prices.

In addition, the NPTC said the Department of Energy expects the price of low-sulfur diesel fuel to decline as refineries convert production of high-sulfur fuel to lower sulfur fuel and increase supplies over the next several weeks. This will allow supplies of the low-sulfur fuel to catch up with the sudden demand.

The NPTC said the ICC's action and the expected decline of fuel prices later this month may help diffuse the shutdown this week.