Randy Reis of South Dakota finishies working on his truck as he gets ready to drive to Anamosa, Iowa in the parking lot at the Road Ranger gas station Tuesday, April 1, 2008 in Evansdale, Iowa. (MATTHEW PUTNEY / Courier Staff Photographer)
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Wednesday, April 2, 2008 12:21 PM CDT
Trucker strike fizzles in Cedar Valley
By MATTHEW WILDE, Courier Staff Writer
WATERLOO --- A widely publicized trucker strike to protest record-high diesel fuel prices didn't materialize on a grand scale Tuesday, and not at all in the Cedar Valley.
Semis lumbered down highways and interstates in Northeast Iowa at normal rates, area and out-of-state drivers said. Some loosely organized protests happened in other parts of the country.
Two area independent truckers were on the road Tuesday, ignoring previous pleas from colleagues across the country via CB's, the Internet and word-of-mouth to stay home. Thirsty semis lined up at the Flying J Truck Plaza in Evansdale throughout the afternoon for diesel selling for $3.87 per gallon.
From the cab of a Volvo tractor-trailer, Ed Jessen, owner of Jessen Transport on Independence Avenue, said truck traffic was normal on Interstate 380 on Tuesday morning. He was heading to Des Moines to pick up a load of tires for John Deere.
Jessen said he heard about the reported strike, but he'll keep on truckin'. If drivers implement fuel-saving measures like he does, Jessen said they can soften the blow of escalating costs.
"A strike is ridiculous to even talk about. It's not viable," Jessen said. "Diesel is higher, and I don't care for that, but I'm not bitter since I work hard to get good mileage. With the fuel surchages, I'm doing better than before."
Jessen said the key is driving smarter, not harder.
He gets a little more than seven miles per gallon compared to most truckers at five, just by keeping his speed at 59 mph, even though the speed limit may be 70. Slowing down also cuts down on maintenance, he said. Plus, Jessen doesn't let his tractor-trailer idle when parked.
"It's all about mileage and controlling costs," Jessen said.
The U.S. Department of Energy said the national average of diesel fuel this week is $3.96 per gallon, up $1.17 from a year ago. Some operators say freight rates haven't kept up, forcing many out of business.
The premise of the strike was to bring national attention, and possible federal action, to curb escalating diesel prices.
Nancy Krueger, co-owner of Krueger Transport on Gilbertville Road, said parking a rig for a day or more just doesn't make financial sense. Krueger makes sure she contracts profitable loads, averaging $1.50 to $2 per mile, for her husband and two drivers who work for the company via a lease arrangement.
That way when $800 is spent for diesel for a 1,000-mile trip, there's money left to live on and for other expenses. Typically they haul machinery, lumber and steel. All three were on the road Tuesday.
"For some drivers ... yeah, it's hard to make a profit. It's about finding the right loads and the largest payments," Krueger said.
For years, diesel fuel was 30 to 40 cents per gallon cheaper than gasoline. Now, the opposite is true and then some.
Denny Donlea, managing partner of Consolidated Energy Co., based in Jesup, said a number of factors contributed to the change. Oil is above $100 per barrel, investors are artificially pushing prices and refiners are most likely making more gasoline than diesel, compared to previous years, to meet demand.
Plus, the East Coast is coming off a cold winter, and heating oil is commonly burned for warmth. That's in direct competition with diesel.
"There were a lot of things working against diesel all winter," Donlea said. "We could see it going this way six to eight months ago."
In theory a strike seems like a good idea, said Sam Sortino, a driver for R&M Transportation in Omaha, Neb. If goods didn't move, that may be enough to evoke change, he said.
But when his load of pork out of Tyson Fresh Meats in Waterloo was ready, he was planning to hit the road for Arizona. With diesel prices, Sortino was just glad he's no longer paying the fuel bill.
"I did it on my own before, but I wouldn't do it in this climate," he said.
Contact Matthew Wilde at (319) 291-1579 or matt.wilde@wcfcourier.com.
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