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Bill Graves, American Trucking Association CEO, on rising fuel prices and their impact on not only the trucking industry, but the overall economy.
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-- on average throughout the country the west coasts getting hit the hardest for the twenty cent increase.
This is bill grace former governor of Kansas and currently the president and CEO of the American trucking association with much more.
On the impact of these high fuel prices I'm not just trucking.
But the overall economy governor it's it's good to have you with us thank you for joining -- and thanks for good to be back so interesting you know in the trucking industry really is front row center finger on the pulse of the US economy so first.
Get your general outlook what you're seeing in your industry and how reflects on where our economy is headed.
Well it you know the the first quarter was not too good for us -- wise second quarter increased.
A little bit but were were still only expecting about.
A three and a half percent increase may be three point 7% increase in our tonnage rates for 2012.
Vs where we -- in 2011 so it's.
It's up but it's nothing to get excited about.
That perfectly describes the pace of US economic expansion it's expanding but nothing to get excited about.
Our let's talk about this issue of gas prices what's interesting in the trucking industry -- you guys in two ways obviously the diesel you put in the trucks themselves -- also.
Gasoline prices says that the tax on consumers -- they have to pay more gas obviously -- not be buying other things that the trucking industry would otherwise transport.
Explain further the -- -- seeing how much gas to happen -- how compares.
Well in combination with gasoline and diesel fuel commercial trucking consumes about fifty billion.
Gallons a year or so as we start to inch up towards four bucks on.
B soul and I don't know 370 gallon on gasoline.
You're basically talking about 200 billion dollars of expanse.
None of which I mean as I've said on your show before we're not you know recreational were our charitable drivers it all gets passed through to consumers.
And so at a time when consumers are already struggling financially.
All of a sudden everything in my on the store shelves is -- -- up a few pennies as well.
Interesting so 142.
Point seven billion is -- the year.
You give spend time fuel in the industry last year when you expecting to spend this year.
Is that the -- well I mean you figure you you gave me.
Yelled at that the big the gasoline is about like 151000000016.
Billion gallons thirty.
35 billion and diesel.
So there's you know I've got to you know do the math for a start but it's it's it's edging up in the it's more than a 150 billion it's less than 200 billion but it's it's a lot of money in the consumers pay -- Yeah.
What thoughts on the federal fuel tax -- regular actually supported so despite the burdens.
Cost burdens of the Fuel -- that the fuel costs -- you support -- for infrastructure.
Well actually now week.
Right especially now Lori because I'm gonna tell you there's -- show we can do about that the cost differential -- on what the -- get for our buck out of out of an increase in the fuel tax vs what we're gonna see.
If we start seeing a proliferation of toll roads in America the diesel fuel taxes there's a fairly -- nominal amount to collect.
But but -- -- is a substantive substantial amount to collect and so we still believe wallets it's in effect the lesser of the evils for infrastructure investment.
Is a federal fuel tax.
We'll leave it there -- thanks so much that thanks -- Well stocks -- attracted to do something they haven't done since January 2011.
