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Trucking Industry Continues Call for Action on Fuel Crisis

23 February 2000

Trucking Industry Continues Call for Action on Fuel Crisis; ATA Says Increasing Costs to Move Freight is Threat to Economy

    ALEXANDRIA, Va., Feb. 22 -- The American Trucking
Associations (ATA) today renewed its call for emergency government action to
halt the diesel fuel price crisis that is threatening the trucking industry
and its ability to deliver goods to consumers and businesses across the U.S.
    ATA President and CEO Walter B. McCormick, Jr., said:  "Today, more than
70% of our communities rely solely on trucks to deliver their goods.  Simply
put, if trucking breaks down, so does the U.S. economy.  I firmly believe that
if the transportation backbone of this country is allowed to snap, then this
historic U.S. economic expansion will be running on fumes."
    McCormick, who will deliver the trucking industry's concerns in testimony
before the U.S. Senate Committee on Energy and Natural Resources on Thursday,
February 24, said the price of fuel is the "Achilles heel" for the industry.
He said, "A key reason trucking is the dominant mode of transportation in this
country is because it is affordable.  And, we are affordable because of razor-
thin profit margins of two to four percent.  If that moves even slightly, many
are forced out of business."
    "Most trucking companies can't afford to absorb the diesel cost and don't
have the ability in a highly competitive market to raise prices to cover the
diesel costs.  Out-of-control fuel prices -- such as this year's 53% increase
from 1999 -- can quickly wipe out that margin."
    The ATA President said motor carriers are asking for three actions by the
federal government to end the fuel crisis.  They include opening the Strategic
Petroleum Reserve to help drive prices down, asking the U.S. Government to
convince OPEC that stable and reasonable prices are in everyone's best
interest, and requesting that the U.S. Attorney General commence an
investigation into any illegal diesel price gouging and profiteering.
    "We certainly understand the frustration of the hundreds of independent
owner-operators who are demonstrating in front of the U.S. Capitol today.
They are part of the 9.6 million taxpayers who work for the trucking industry
and helped pay for the petroleum reserve." said McCormick. "We don't want to
see this booming economy bust. Unfortunately, however, it is a real
possibility that this crisis could be the big chill on a hot U.S. economy --
that the result could be inflation and recession if the Federal Government
continues to sit back and watch."
    More ATA fuel crisis information available at http://www.truckline.com