Fuel prices around the world.

[Snobdds]

I don't play futures much any more, but, off the top of my head contract size is too big and expensive for an operation that burns a few hundred gal/month. My guess is your guidance is good, but scale probably makes it unrealistic?

best,

ed

Haydude makes it sound like he goes through thousands of gallons, not just a few hundred per month. If the perception he gives is correct, then futures contracts will help him.

Otherwise he can go the low rent method of just adding fuel surcharge to the cost.

I just contracted with the guy that cuts my non hay 50 acres each summer around the house. He was charging 25/acre last year. This year he is going to charge 20/acre, but he will draw off my diesel tanks. I think he just got a raise.

 

[jyoutz]

Oh boy. Nobody ever said my situation was more important. It’s that my situation is more affected than yours by $5/g fuel. When fuel is $2/G I go through over $10,000 in a year. When it’s $5/G? I’m sure you can do the math….

Lets just say I am very healthy physically and financially. I can bridge these times. More worried about my less fortunate brothers and sisters in similar businesses.
Truckers, farmers, excavators, landscapers….I like to represent their plight along with mine.

They have a much tougher time with these fuel prices than you.

There’s going to be a lot of cross country truckers sitting idle or doing short hauls. The last time diesel was this high, they were double stacking containers on trains and the interstates had a lot less trucks. I think this might become the norm for cross country freight even if diesel prices come down.

 

[MossRoad]

There’s going to be a lot of cross country truckers sitting idle or doing short hauls. The last time diesel was this high, they were double stacking containers on trains and the interstates had a lot less trucks. I think this might become the norm for cross country freight even if diesel prices come down.

Haven't look this week, but while ice fishing a few weeks ago, the trucks were flying by on the Indiana Toll Road at a rate of about 10 per minute, same as always. The container trains are all double stack. We live by a very busy rail corridor.

I'll have to take a look next time I'm by there.

We have an intersection with gas stations on 3 of the corners. Two are always the same price for fuel, the 3rd is always a penny cheaper for regular gas. Saw $3.99 at the two on Sunday. It was $3.98 at the 3rd. Whoopie! Friend said it was $4.39 on the other side of town this morning.

 

[Hay Dude]

Yes high fuel prices severely affect the profitability of your business. Not good. But don’t rant about bogus reasons why prices are high. Many people have posted credible sources that explain the causes for these prices, yet you deflect to blame things that aren’t driving these current prices. Obviously you hate the government, but the government isn’t the cause of all your problems.

Yeahhhhh ummm no
CNN is less credible than the guys down at the corner bar.
NPR is not credible, either

 

[jyoutz]

Haven't look this week, but while ice fishing a few weeks ago, the trucks were flying by on the Indiana Toll Road at a rate of about 10 per minute, same as always. The container trains are all double stack. We live by a very busy rail corridor.

I'll have to take a look next time I'm by there.

We have an intersection with gas stations on 3 of the corners. Two are always the same price for fuel, the 3rd is always a penny cheaper for regular gas. Saw $3.99 at the two on Sunday. It was $3.98 at the 3rd. Whoopie! Friend said it was $4.39 on the other side of town this morning.

I was mostly talking about the east/west corridors (I-40, 80, 70) that travel from the west coast to the Midwest and East. Local trucking will probably not be as affected. But it’s way cheaper to ship from the Long Beach port to Chicago by rail than truck (75% less diesel fuel per ton of freight).

 

[jyoutz]

Yeahhhhh ummm no
CNN is less credible than the guys down at the corner bar.

Well your opinion isn’t shared by the majority of Americans. They are regarded as having some of the best hard and breaking news in the industry. Anti-government people don’t like them because they don’t play to their contrived conspiracies like other channels do.

 

[Hay Dude]

Well your opinion isn’t shared by the majority of Americans.

Prove it
What you going to do? show me a “poll”?

I think you will see this fall I am right

 

[jyoutz]

Prove it
What you going to do? show me a “poll”?

Now you’re just being a horse’s A.

 

[dirttoys]

Haydude makes it sound like he goes through thousands of gallons, not just a few hundred per month. If the perception he gives is correct, then futures contracts will help him.

Otherwise he can go the low rent method of just adding fuel surcharge to the cost.

I just contracted with the guy that cuts my non hay 50 acres each summer around the house. He was charging 25/acre last year. This year he is going to charge 20/acre, but he will draw off my diesel tanks. I think he just got a raise.

LOL, not speaking for hay dude, and just a wild guess based on one man operation, if he burns 500 gal per month he is a busy dude

My point was: scale is a booger, and a one man show has all the risk and exposure of a big operation, but the hedging solutions used by big operations don't all work for small guys.

If a meaningful input cost doubles, it is hard on everyone that uses that input. Some are better able to manage that than others.

Best,

ed

 

[Hay Dude]

More than a one man operation.
Very difficult to make 1000 tons alone and do everything else we do.
$10,000 a year in fuel is nothing! I used $12,500 in ‘21.
That will jump to over $25,000 this year!