The Oil Drum

Mac...I have a good friend that drives a big Kenworth for an exotic auto transport company. We talk a lot and it is usually when he is on the road delivering and picking up autos. I ask him specific questions, like how many large RVs are you now seeing compared to a couple of years ago...ans, very few now. He also reports that several large truck terminals that he once used are now closed, he informed me that 'Loves', a large chain of truck terminals is owned by the Chinese, and he said auto and truck traffic is way off in most areas. All this is anecdotal info but if his observations are correct, and I have no reason to doubt him, then it reinforces the data that demand for fuel is down somewhat. One thing that he said recently is that his company is now having fewer requests for auto transport and that his company has cut mileage compensation for all it's drivers. Iow, he has taken a pay cut recently.

The auto transport co owns 32 rigs and their biz is down. My friend suggested that the company might not survive untill Sept. Most of their customer base are wealthy auto collectors that compete in auto shows or rich people hauling their $500K - $Many Millions exotic sports cars south in winter and north is summer...seems even the wealthy are cutting back somewhat.