America's truckers grind to a halt

Rocketing diesel costs are forcing US hauliers out of work and into taking action - to bring their plight to the notice of politicians, writes James Doran

Clayton Towner drives an 18-wheeler Peterbilt truck from one end of America to another, hauling furniture, food and other essential goods for The Covered Wagon Train trucking company in Hornell, New York. But, this week, Towner's truck is idle and he sits at home in chilly Hornell with his wife, Linda. 'I'm just watching TV and going on the computer,' he says. 'There is less and less work these days.'

As the credit squeeze tightens its grip on the American economy, the oil price continues to soar and the price of diesel in America has hit record highs at above $4 a gallon. This means truckers such as Towner and the small company he works for have been forced to shut down when they cannot pass the inflated cost of fuel onto their customers. 'If I can't pass it on to the shippers, then we have to park the trucks,' says Dick Forbes, the general manager at Covered Wagon.

The steep increase in the price of fuel has pushed many small trucking companies and independents, or 'owner operators', to the brink of bankruptcy as the pressure of overheads that have more than doubled in just a couple of years becomes too much for many to bear.

Now thousands of drivers across the US are banding together in an effort to call a national truckers' strike. On local news bulletins, gangs of burly men (and women) brandish placards at truck stops, demanding government intervention to bring down the price of diesel.

They hope that by shutting down the essential asphalt supply lines, they may force politicians in Washington to take notice and perhaps intervene to ease their financial burden. The drivers argue that other industries - such as farming - get subsidies, so why not them?

With the price of crude oil soaring towards $105 a barrel, the average price of diesel fuel reached a record high of $4.037 a gallon in the US last week, according to the AAA motor club - a 45 per cent price increase in 12 months.

Every 5 cent fuel price hike increases a trucker's annual expenses by about $1,000, says the Owner-Operator Independent Drivers Association (OOIDA), the trade group that represents 160,000 self-employed US truckers.

Donald Nolen, a 39-year-old independent driver from Rhome, Texas, spends $2,000 a week on diesel. 'This time a year ago, I guess it would have cost $1,500,' he says. 'I have seen freight volumes slow down, especially since the cost of diesel per mile is higher than the [standard] fuel surcharge.' Nolen says most companies charge shippers about 42 cents a mile for fuel, while the actual cost equates to about 70 cents a mile.

Since the idea of a national truckers' strike began to gather pace last week, Nolen says, the truck stops across America have been jammed with idled wagons and protesting drivers.

'Some of them are taking loads of freight and then shutting down in the truck stops. Others are just refusing to pick up freight and heading to the truck stops,' he says.

But Nolen does not think the strike will have any real impact on the price of oil, as international markets, state and federal taxes, and all manner of other macro-economic forces are responsible for the massive fuel price inflation currently crippling the United States.

Some of the strikers are lobbying state governments to reduce big state taxes levied on diesel. But there are no signs that anyone in power, at either state or federal level, is prepared to intervene.

'The state taxes are very high, and they are not being used to fix the roads and the infrastructure like they are supposed to be,' Nolen says. 'A lot of the states have used these taxes for other things, so they don't have enough money to invest in the roads and cannot reduce fuel taxes.'

The diesel price rises have taken a big toll on Nolen and his family. His wife Patricia has had to take two jobs - one as a security guard at the nearby Nascar race track, another as a packer at the local German Deli - just to make ends meet. 'It certainly is not easy to make a living right now,' Nolen says.

But despite the hardships he faces, Nolen will not be joining his striking colleagues at the truck stop. 'I think there are better ways to make change,' he says. 'Like working with the OOIDA. It can lobby politicians and have a much bigger impact than drivers on their own.'

The last time US truckers went on strike, during the fuel crisis of the Seventies, the action fizzled out in a relatively short period and the strike had no impact. But many of the OOIDA's members hope this time will be different. 'This is the biggest shutdown the industry has seen in 30 years, and it's got a lot of support, so we will have to see what happens,' Nolen says.

The biggest hurdle for most drivers who want to join the action is that many cannot afford to go out on strike. There is no union to support them and no kind of safety net.

Up in New York state, Towner thinks striking is a good idea but is just one of the many who feel such action might not be economically viable for his struggling family. 'I think the strike is a great idea,' Towner says. 'But how do you go on strike when you've got no work? That's a hard one to figure for me.'