MARIA: WELCOME BACK.
PAIN AT THE PUMP FOR TRUCKERS.
DIESEL PRICES SKYROCKETING TO
THIS WEEK TO NEW HIGHS RISING
FASTER THIS WEEK AND OVER THE
PAST MONTH AND REGULAR GASOLINE
ACCORDING TO AAA.
TRUCKERS ARE PAYING THE PRICE,
OVER $600 MORE ON AVERAGE PER
FILL UP THAN THEY WERE JUST A
YEAR.
AMERICAN TRUCKING ASSOCIATION
SENT A LETTER TO THE WHITE HOUSE
WARNING OF MORE SUPPLY CHAIN
ISSUES.
IF THESE PRICES DO NOT CONDONE
DRUG ME RIGHT NOW IS THE
PRESIDENT AND CEO OF THE
AMERICAN TRUCKERS ASSOCIATION,
CHRIS SPEAR.
GREAT TO HAVE YOU THANK YOU VERY
MUCH.
CONNECT THE DOTS FOR US, HOW
WILL WE SEE FURTHER SUPPLY CHAIN
ISSUES AS A RESULT OF FURTHER
MOVES HIGHER IN OIL AND GASOLINE
AND DIESEL?
>> THANKS FOR HAVING ME BACK ON,
MARIA.
IT’S VERY CLEAR TO US THE
IMMEDIATE SURGE IN THE PRICE OF
FUEL IS GOING TO HAVE EVEN MORE
IMPACT -- MAKE ADVERSE IMPACT ON
THE SUPPLY CHAIN JUST IN THE
PAST YEAR IS IN THE PRICE OF
DIESEL GO UP WELL OVER A DOLLAR
A GALLON JUST IN THE LAST WEEK
TRUCKING HAS EXPERIENCED 75
CENTS ON THE GALLON SURGE JUST
IN ONE WEEK ALONE.
SO WITH HALF THE COST OF A
GALLON OF DIESEL TIED TO CRUDE
UR ESTIMATES ARE SHOWING A
BARREL IS GOING TO BE 185 --
$200 A BARREL OVER THE NEXT TEN
MONTHS.
THAT IS JUST SIMPLY NOT
SUSTAINABLE FOR LOCAL
COMMUNITIES THAT RELY ON TRUCKS,
83% OF OUR LOCAL COMMUNITIES DO.
THAT IS GOING TO REDUCE THE
NUMBER OF PRODUCTS ON THE SHELF,
APPLES FROM SEVEN -- TWO YOU’RE
REALLY GOING TO SEE CHOICE
LIMITED AND WE EXPERIENCE
CONSOLIDATION WITHIN THE
INDUSTRY.
SUPPLY CHAIN IMPACT IS
EXTRAORDINARILY MEASURABLE.
MARIA: THIS IS GOING TO AFFECT
ALL OF US.
YOU ARE TRANSPORTING 70% OF THE
NATION’S GOODS BITE TRUCKS.
IF OUR NUMBER ONE COST GOES UP,
THE COST OF DIESEL THAT YOU HAVE
GOT TO BELIEVE THAT’S GOING TO
MEAN HIGHER FREIGHT PRICES.
I GIVE US THE INDIRECT EFFECTS
OF THIS?
>> THERE IS A SURCHARGE
OBVIOUSLY THAT CAN BE PASSED ON.
THAT REALLY ONLY COVERS 60% OF
THE PRICE.
WHEN YOU SEE A 75 CENTS SPIKE IN
JUST ONE WEEK, THAT IS JUST
SIMPLY NOT SUSTAINABLE.
OUR INDUSTRY’S SECOND-HIGHEST
COST IS A FUEL.
THE FIRST BEING LABOR.
I’VE BEEN ON YOUR PROGRAM MANY
TIMES ABOUT THE PRICE FOR
TALENT.
NOW WE ARE SEEING APPLICABLE TO
FUEL.
THESE ARE TWO MEASURABLE IMPACTS
THAT ARE VERY, VERY SIGNIFICANT
ON OUR BOTTOM LINE.
THE SERVICE THE ECONOMY AND
CONSUMERS AND HELP US CLIMB OUT
OF THIS ECONOMIC RUT THAT WE
FIND OURSELVES IN, WHAT WE ARE
EXPERIENCING NOW IN THE PAST FEW
DAYS WITH THE UKRAINIAN CRISIS
IS QUITE SIGNIFICANT.
I’M JUST NOT SO SURGE IN THE
INDUSTRY BEAR THAT FOR MUCH
LONGER.
HENCE OUR LETTER TO THE WHITE
HOUSE TO MAKE IT VERY CLEAR THE
CONSEQUENCES.
>> CONNOLLY HARRIS THE OTHER DAY
SAID HER FAVORITE SUBJECT IS
ELECTRIC TRUCKS, ELECTRIC BUSES.
HOW HARD IS IT FOR THE TRUCKERS
TO BASICALLY ADAPT TO NEW
EQUIPMENT AND NEW TRUCKS?
AND TRY TO DO THIS OVERNIGHT?
>> THAT TRANSITION IS GOING TO
HAPPEN IS JUST NOT GOING TO
HAPPEN TOMORROW.
THIS IS NOT RAINBOWS AND
UNICORNS ABRADE THE AVAILABILITY
OF ELECTRIC CARS IF YOU WANTED
ONE YOU WOULD BE WAITING MONTHS.
WE’VE GOT A BACKLOG ON BATTERIES
AND A SHEER LACK OF THE ABILITY
TO CHARGE HIS EQUIPMENT.
NOT JUST CARS BUT TRUCKS.
I HAVE A PEOPLE KNOW THIS BUT
TRUCKS A REGULAR DEIST FOR AN
80,080,000-POUND VEHICLES
EQUIVALENT TO 340 HOUSES BEING
ELECTRIFIED.
THAT IS JUST ONE TRUCK UP OR
THERE’S NOT ALLOWED ENOUGH
ELECTRICITY ON THE GRID TO DO
THIS.
NOT NOW AND CERTAINLY NOT IN THE
NEXT TEN YEARS.
YOU CAN MOVE AWAY FROM THE
UTOPIA DISTINCT PITCH BY THE
ERRATIC ENVIRONMENTAL LOBBY MOVE
TO REALISTIC DOMESTIC POLICY WE
NEED CONTROL AND LEVERAGE FOR
LEED INCREASING NUMBER OF
LEASES.
WE NEED TO INCREASE EXPERT
OPERATION MAKES INCREASE
PRODUCTION.
HALF OF OUR CONSUMPTION IN THE
U.S. IS FOREIGN OIL.
WE SHOULD NOT BE CONCEDING
ANYTHING TO REGIMES LIKE RUSSIA
AND IRAN.
THIS IS SOMETHING WE CAN DO
IMMEDIATELY WE SHOULD DO IT.
THIS KIND OF CONTROL AND
LEVERAGE WILL REDUCE THE
VOLATILITY AND ANXIETY THAT
CURRENTLY EXIST IN THE MARKET IT
PUT US IN A MUCH BETTER POSITION
TO CLIMB OUT OF THIS ECONOMIC
RUT.
MARIA: CHRIS THANK YOU FOR THE
REALITY CHECK WE SO APPRECIATED.