Pharos-Tribune

Business

March 16, 2011

Dealing with diesel

Trucking companies battle increased costs

— Gas prices aren’t the only fuel that is increasing — so are diesel prices and those are affecting local trucking companies and consumers.

As the cost for diesel increases, so does the costs for all industries, according to Pat Tierney of Tierney Industrial Warehouse.

“The freight industry passes the cost onto the consumers,” he said. Transportation companies generally charge customers a fuel surcharge to help with its fluctuating costs.

Right now, Tierney said, fuel charges are all over the board.

“They are typically as high as 24 percent right now,” he said. “It doesn’t matter what you are buying. Anything you purchase delivered by a trucking industry or by train, is based on cost of fuel.”

According to Tom Pasquale, with Pasquale Trucking Co., the rising cost of diesel has a huge effect on the trucking industry.

“It’s our biggest expense,” he said. “So, it hurts.”

His company has approximately 40 semis on the road, which travel within a 700-mile radius of Logansport.

He explained the company’s customers pay a fuel surcharge, which increases as diesel costs increase.

While that charge helps, it doesn’t cover the entire cost of the diesel used.

“Our trucks average six miles per gallon and they run a couple thousand miles a week,” Pasquale said. “You do the math.”

The company immediately noticed the price increase and has attempted to find ways to save money.

“We have no choice,” Pasquale said. “We have to have fuel to run our trucks. We have to deal with it. It makes it tough.”

Gangloff Industries said the effect is especially noticeable when the cost of diesel increases by 30 cents in - a two-week period.

“The national average today was $3.87,” CEO Randy Ferguson said Monday afternoon. “Two weeks ago, it was at $3.57.”

Ferguson said Gangloff keeps contracts with all of its customer for the fuel charge. That charge changes every Monday.

“The way fuel has been increasing, even changing the surcharge once a week, we haven’t been able to keep up,” he pointed out.

This means the company is left to operate with a less margin.

“Everyone has had a tight budget to work on already,” Ferguson said. “This has just made it even harder.”

It also mean less of an opportunity for Gangloff Industries to complete some projects scheduled for spring — including equipment purchases.

“It is just making the whole economic picture a little more gloomy,” he said.

The increased prices also affects other materials needed by Gangloff. Tires have increased 12 percent and it has seen an eight percent increase in bulk oil.

The company currently operates 42 trucks within a 400-mile radius. The trucks also get 6 miles per gallon and travel between 2,500 and 3,000 miles per week.

Both companies are doing everything possible to save money on diesel.

Pasquale Trucking has a diesel storage area and the business tries to fill its trucks as often as possible. Since the diesel is purchased in volume, Pasquale gets a better deal.

Auxiliary power units have also become a popular item for use in semis. With the units, drivers do not have to leave trucks idling to supply power for heat or air conditioning.

Pasquale installed the units in his company’s trucks four to five years ago. Gangloff just started installing them about six months ago. Ferguson said Gangloff will not see immediate results, but will in the long run.

Both trucking companies also have the capability to electronically govern the speed of the trucks.

“We know we have to start planning for the future and we can’t sit back and do nothing,” added Ferguson.

Pasquale — and every other trucking company — can only hope things will change in the future.

“We’ll just pray for peace and that crude oil comes down,” said Pasquale. “We’ll also use less.”

• Denise Massie is a staff writer at the Pharos-Tribune. She can be reached at 574-732-5151 or denise.massie@pharostribune.com

1
Text Only | Photo Reprints
Business
  • BIZ-PT042014 Property Values.jpg Coming due: Logansport sees dramatic property tax increase Property owners around Cass County have been getting tax bills in the mail over the last week -- and some have found unexpected increases in their bills. As the May 12 deadline approaches to pay the first half of year 2013 property taxes, Cass County

    April 20, 2014 1 Photo

  • Logansport Curves up for sale Logansport's Curves franchise is up for sale, its manager says. Owner Angie Wisler and manager Audrey Eaker, Wisler's daughter, intend to simplify their lives by selling the Logansport franchise as well as their Delphi Curves franchise, Eaker said. T

    April 20, 2014

  • Business news in brief, April 20 O'Brien joins law firm New attorney Jacob O'Brien recently joined the law firm of Starr Austen and Miller as an associate attorney. O'Brien, a 2004 Logansport High School graduate, earned a Bachelor of Science in biology from Indiana University Bloom

    April 20, 2014

  • COMMERCE TALK: Spring means activity at chamber Spring is here and we are busy with lots of events at the Chamber of Commerce. New this year, the chamber has partnered with the Cass County Resource Network to offer HYPE (Helping YOU Pursue Excellence) Together classes. These are free or minimal co

    April 20, 2014

  • Consumer Reports: Extended warranties an expensive gamble Looking for an easy way to save hundreds on your next new car and simplify the buying process at the same time? Skip the extended warranty, says Consumer Reports. The dealer will probably try hard to sell you one, telling horror stories about the th

    April 20, 2014

  • SMART MONEY: Charity receiving estate will handle probate DEAR BRUCE: I hope you can help us figure out what to do. I am 76 years old, and my husband is 78. We are thinking about getting a trust to avoid probate when we pass away. We have been to many seminars discussing this matter, and I still don't under

    April 20, 2014

  • BIZ-PT041314 SecFed3.jpg From the inside out: Rebranding transforming Security Federal The rope barriers are gone from Security Federal Savings Bank's downtown offices. Lettering on the floor replaced them, advising bank customers to wait a few feet back from the bank tellers' desks. Each teller's station is flanked by wood panels that

    April 13, 2014 5 Photos

  • Women's boutique open along Eel River A girls' and women's accessories boutique recently opened near the west entrance to the River Bluff Trail in Logansport. Glam Girl Boutique owner Megan Ramirez said she's focusing on selling inexpensive women's accessories and girls' accessories and

    April 13, 2014

  • BIZ-PT041314 Haley Jasmantas.jpg Business news in brief, April 13 Carroll chamber has Business After Hours FLORA -- The Carroll County Chamber of Commerce will have a Business After Hours event from 5 to 7 p.m. Monday at the Sycamore Industrial Park located on Ind. 75 just south of Ind. 18 in Flora. Visitors may to

    April 13, 2014 1 Photo

  • ON THE JOB: Keeping a work-life balance Being a working mom with a full-time career sometimes has me in a rut. I have to really focus on balancing work, life, family and, of course, "me" time. This task is a lot harder than I thought it would be when I first became a mom. One of my favorit

    April 13, 2014

Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Poll

Should mushroom hunters be allowed to forage off-trail in Indiana state parks?

Yes
No
Undecided
     View Results
Featured Ads
AP Video
U.S. Paratroopers in Poland, Amid Ukraine Crisis US Reviews Clemency for Certain Inmates Raw: Violence Erupts in Rio Near Olympic Venue Raw: Deadly Bombing in Egypt Raw: What's Inside a Commercial Jet Wheel Well Raw: Obama Arrives in Japan for State Visit Raw: Anti-Obama Activists Fight Manila Police Motels Near Disney Fighting Homeless Problem Michigan Man Sees Thanks to 'bionic Eye' Obama to Oso: We'll Be Here As Long As It Takes Bon Jovi Helps Open Low-income Housing in Philly S.C. Man Apologizes for Naked Walk in Wal-Mart New Country Music Hall of Fame Inductees Named 'Piles' of Bodies in South Sudan Slaughter SCOTUS Hears Tv-over-Internet Case Chief Mate: Crew Told to Escape After Passengers
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.