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Yahoo headline just posted- with rising diesel costs, truckers see the end of the road
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[quote user="JSGreen"] <p>[quote user="Bucyrus"]When fuel rises, my trash hauler raises my rate and explains that it is due to increased cost of fuel. They don't say anything about quitting the trash hauling business. [/quote]</p><p>Yes, but the trash haulers usually have a contract or franchise with a city, which allows them to pass on such costs. No competitors untill contract is up for renegotiation...</p><p>Independent owner operators are bidding for business...and there is competition. Even with large trucking firms, those who are already on the edge, possibly because of over expansion or being in the wrong place at the wrong time, may decide to hang it up. </p><p>But they wont all go out of business...when there are fewer to compete, the rates will go up enough so a few will be able to survive...and the price will be passed along to the consumer, assuming they still have money to buy whatever the item is.</p><p> </p><p>[/quote]</p><p>What I am saying is that the trash haulers have no competitors who are not equally affected by rising fuel prices whether they are contracted with the city or are independent. Mine is independent, but I could not go to one of their competitors to escape the fuel induced rising rates because their competitors are raising their rates for the same fuel increases. </p><p>However, I do have one escape from the rising trash hauling cost. I can find an alternative to that service. It is not easy in the case of trash disposal, but the same principle applies to all consumer goods that will be rising in price due to fuel price increases. This is one factor that will definitely put truckers out of business. As prices rise, consumers will cut their consumption wherever they can. That means less things get hauled, so fewer haulers are required.</p>
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