Profits Impossible for Some Local Trucking Companies - KFDA - NewsChannel 10 / Amarillo News, Weather, Sports

Profits Impossible for Some Local Trucking Companies

Bobby Mitchener, Mitchener Trucking Bobby Mitchener, Mitchener Trucking
Dudley Baldwin, Baldwin Distribution Dudley Baldwin, Baldwin Distribution

The cost of diesel is threatening small trucking companies arcoss the nation.

We're told a gallon of diesel costs about $3.75. Multiply that by 300 and you'll get an idea what semi truck renters are paying just to fill their tank.

Truck Company owner Bobby Mitchener went from 18 trucks to 7 and he says he doesn't know if he will be around long enough to see prices stop rising.

"We're just getting by right now, keeping the drivers busy and pay the bills basically."

While Mitchener is struggling a larger local company built a clause in their contracts to cover economic slumps.

Dudley Baldwin of Baldwin Distribution says, "We do have surcharges in all of our contracts and so we pass the cost of fuel onto our customers and while doesn't cover 100% we do recover the majority of increased costs."

Baldwin expects to do well this year but Mitchener is making some difficult decisions.

"If we don't take the load somebody else is going to, but there's alot of freight we won't take, I we do it for a certain amount for mile so if we don't make any money then we're not going to take it.'"

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