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Bill Graves, former Governor of Kansas and American Trucking Association president and CEO, on how diesel prices are impacting the trucking industry a...
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Economy standards.
For heavy duty vehicles which he says we'll -- truck operators.
Fifty billion and fuel costs for reaction I'm joined now by former Kansas governor bill graves he's the CEO president of the American.
Trucking association builds good to have you back on the show what do you make of this latest -- Well Cheryl I mean I think that we have to be in favor of any thing that that tries to you know get -- get some sort of a handle on on the increase in in diesel fuel prices and so.
Combination of trying to be more fuel efficient with traditional diesel technologies and we do see a lot of movement towards natural gas powered vehicles these days so.
Our folks are looking for whatever is the the path of least resistance and were they can be the most economical.
Diesel prices for your industry were up 40%.
Last year or so and particular the trucking industry.
Has taken a huge hit because what we've seen on the commodities side of the markets.
What is the challenge for 2012.
As a looks like the forecasts are telling us prices are gonna continue to go higher.
Yeah I mean it looks like they're saying on average diesel prices are gonna be about thirty cents a gallon higher in in 2012.
And that's about true for gasoline as well our industry consumes a little over fifty billion.
Gallons of fuel -- -- -- the maps pretty easy that means we're gonna spend about fifteen billion dollars more.
And that's simply cost that we pass on to consumers and it just means all the stuff you buy in the stores gonna cost more eventually so.
We you know we're doing our best to try to be more fuel efficient like I say trying out alternatives like natural gas.
But in the in the near term there's not a whole lot you can do other than just.
You don't pay the bill.
You know -- your members -- -- association represents 70%.
Of all of the race.
That is shipped in this country.
What is seeing right now what are your members telling you in particular about tonnage rates I know that you yourself actually survey -- on month to month basis.
It seems if we see higher tonnage race that is -- -- economy that's indicative of a better economy but what are they sent.
Well and we we are -- what were our our folks are pretty busy right now and I keep in mind -- part of that is because in in.
Nine and ten so many people went out of you know left this industry the capacity.
To move freight -- to some extent so that's part of the reason but there's also some.
Some economic recovery but again what concerns us is is that we get a double whammy with these fuel prices.
We pay more in order to do you know move product that is available to be moved that are also put such.
Sort of a lot of pressure on consumers and when consumers don't spend money because they have to buy their own gasoline.
And we don't have freight to move so -- were again were looking for relief anywhere we can find it.
What does this tell you as -- with regards to different pieces of the economy which -- grant represented about whether it's retail.
Housing manufacturing I mean what is -- outlook in your opinion here.
Well I mean I think that the housing is still sort of flat.
RR folks especially flatbed operators they're not seen the rebound yet in housing that we we'd like to see.
Food not surprisingly never really -- do any great extent anybody that has refrigerated.
Transportation.
You know did pretty well even through the downturn in in 20102011.
I mean I think consumers coming back we've seen some some good positive time each numbers in.
In December January and February and were looking forward to the numbers in March because usually that's sort of a bell weather for.
You know what we're gonna see in terms of consumer behavior in the summer months recreational.
Construction home improvement kind of stuff and especially for our truckload sector.
The march -- numbers are real important.
Our -- you wanna ask you look at before I -- let you go tomorrow the senate going to be discussed in a highway transportation bell world really quick what is your position on that right now they'll.
Well we certainly favor getting infrastructure build done there's a couple of important amendments being offered a moral one is on the -- gas act to include incentives for buying natural gas -- vehicles we hope that goes into the bill.
And there's a couple of -- measures and we're we're not real -- on -- so we hope the tolling for provisions go down.
Governor bill graves American trucking association's president and CEO thank you as I -- on the show again.
Thanks -- great.
