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Higher gas prices a troubling trend for transportation firms
The owner of a transportation company in the Valley says he may have to park some of his trucks if gas prices continues to rise. FOX 10's Danielle Miller reports.
PHOENIX - Rising gas prices are hitting people hard these days, especially trucking companies and drivers.
"Typically in the summer season, we see gas prices tick up. This year we're seeing it climb up, especially because of demand," said Aldo Vasquez with AAA Arizona.
Lonestar Trucking, like many other companies, has been being hit especially hard with the rising gas prices. The company delivers construction materials across the Valley, and company owner Pete Harris says every penny counts, especially considering how much fuel his company has to purchase.
"50¢, 25¢. These things burn anywhere from 60 to 100 gallons a day," said Harris.
Harris bids jobs a few months out, and he factors in gas prices with the bids. Nowadays, with fuel costs rising so fast, he sometimes just breaks even.
"Most time, once we bid them, we're kind of stuck," said Harris. "We could back out of them, but we don’t like to upset customers, so we just try to pinpoint a number. Bidding stuff right now, we’re figuring it might be up to $4."
Harris says if gas prices hit $4, he will seriously consider parking a few of his trucks.
Meanwhile, with the price of nearly everything going up, Harris says drivers are also looking to be paid more. This, he says, is leading to a shortage simply because companies aren't making enough to pay high dollars.
"I don’t blame the drivers for looking for more," said Harris. "They deserve it. They work hard. We just try to prove everything with the market, and it's just us trying to keep up with the market."
Harris says in the end, consumers will get hit the hardest.
"It's out of our control," Harris said.
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