[Hat Tip Mailroom] This is a very interesting little bureaucratic energy issue with big downstream ramifications.
Almost every transportation and manufacturing company uses the U.S. Energy Information Administration (EIA) “weekly publication of average diesel prices” in order to calculate shipping costs. According to people in the industry, “this national average is what almost every trucking and logistics company bases their fuel surcharges on.”
However, on June 13th the U.S. Department of Energy, Energy Information Administration, stopped reporting the average weekly diesel price. For almost a month companies have been using an outdated average price in order to calculate shipping costs and fuel surcharges. [See Screengrab]
Originally the EIA said, “We are implementing new methodology to estimate weekly on-highway diesel fuel prices. On June 13, we started conducting the On-Highway Diesel Fuel Price Survey using new statistical methodologies.” {LINK} However, the EIA has not updated anything since that announcement.
As a result, all of the transportation charges and fuel surcharges have been underestimated and priced for almost a full month. The political motive for this move is transparent, it stops higher diesel prices from being passed along in the supply chain… which gives an artificial pause on inflation that comes as an outcome of higher diesel transportation costs (specifically trucking). As explained to CTH:
“The department of energy has not published a national average of diesel fuel prices since the week of June 13. In all of their decades of doing this, they have never missed a week, until that week. This EIA national average is what almost every trucking and logistics company bases their fuel surcharges on.
The DOE “changed their methodology” for calculating this and the week it was supposed to go live, their systems “crashed” (hacked?).
This is going to be a billing nightmare for trucking companies and shippers alike. The lobbying agencies in the transportation company ATA, TIA, TCA, NPTC, have all been very quiet about this. Bad stuff with lots of trickle-down implications.”
One way to tackle inflation is to take away accurate government statistics, that are used as accepted benchmarks by private industry, to calculate downstream prices.
Can you think of another reason for the political and ideological Dept of Energy to stop giving accurate estimates of current average diesel prices?
The new methodology, is as bogus and illegitimate as the department of energy.
Dept. of Energy, one among many bogus and illegitamate federal organizations.
Which is about 90% of DC.
This sounds like a Dept of Energy version of “hide the ships“…
There’s a song on an Ian Dury album that draws on Cockney slang a bit:
“There Ain’t Half Been Some Clever Bastards”
Haven’t heard that name or band’s name in a while…Ian Dury and the Blockheads).
Used to love “Hit me with your Rhythm Stick” in a while…
**Haven’t heard….in a while**
Enron did creative accounting. Look where it got them and some of their executives….(bankrupt and club Fed.).
They’ll hire Andy Weismann to defend the DOE /s.
Not a worry here. The crime syndicate in DC is above the law…
World Com
First Baptist Ministries
Healthnet South
Fannie Mae
Bearing Point
Crazy Eddie’s
ZZZZ Best
McKesson
Waste Management
Sunbeam
Orange County, California
Bell, California
First Jersey Securities
On and on, on and on, ON and ON!!!!
Theranos. Elizabeth Holmes, CEO, convicted. Sunny Balwani, COO, still on verdict watch.
Beautiful plummage! It’s a Norwegian blue!
And as “bogus and illegitimate as the” installed occupant of the white house.
Potemkin methodologies applied for a Potemkin President are emblematic of the stolen election.
The build back green policy—an economic pretense—is an abject failure. It is symbolic of the pretend president.
Donald Trump’s successfully productive free market economy based on cheap energy has been illegitimately displaced.
Replying to your last sentence:
As has Donald Trump as well, to this nation’s detriment.
I was trying to make that final thought more complete….you did it better than I could….thanks
An article in The Mail might give an insight as to what happens with fuel…… HERE
This is going to compound the already worsening market distortions, quickly.
Command economy here we come! /s
Socialism for everyone! (*but the elites)
Worse is what is planned for us.
Exactly.
The “Great Reset” and “Build Back Better” literally spell it out.
Do you think the Germans will put up with burning wood to stay warm this winter? Hot water only on odd or even days? No a/c? I don’t know but I suspect after a while they will rebel.
Starving and freezing to death will have a way of focusing priorities. It will change things, in an unambiguously certain way.
Indeed, especially to those who’ve enjoyed the highest standard of living in the entire EU and consider themselves quite above it all. Mrs. Merkel will not be remembered with fondness, after the new Dark Age-
Not happening. Trust in God!!
CUT THE CORD
Too bad they don’t have any guns. “There are two kinds of people, those with guns, and those who dig. You dig”-Blondie (Good, Bad, & Ugly).
We can never EVER give up our guns.
This would be a good way to solve the obesity crisis.
Simply rig all weight scales downward. The more you want to solve it, the more you rig the scales downward.
If you’ve ever been to rural Netherlands you are stunned at just how much food they grow–they must feed a huge part of the entire EU and a good bit of other countries as well. These people do not play and will not stand for this. Huge crowds, tens of thousands are protesting and supporting them–a large part of the world has figured out the small number of elites are insane–I believe this is a turning point.
Bo: I fervently hope you are right about it being a sort of turning point (and right next door the the EU HQ in Brussels). Per Bannon show this morning, Holland is the #2 food exporter country behind the U.S. Pretty amazing for such a small, partially underwater country.
I’ve visited there numerous times after discovering a lot of Dutch ancestry-spent several weeks out in the country and I would seriously consider moving there. Wonderful, hardworking people who just want to BE LEFT ALONE to live their lives. When you see just how much land these people clawed back from the <rising> ocean over hundreds of years, you understand they will not abide having it all seized in the name of junk science. I would put it on the scale of the San Joaquin and Imperial Valleys in California. If the climate cult succeeds, the EU will starve, its that simple.The Dutch farmers understand this and are making the point by blockading the movement of food to cities. Personally, I think this may be the death knell for the EU down the road, because when people are freezing and starving, its every person (and country) for themselves.
Frankly, the EU has been on life support for years, and deserves to be buried, as it stinks.
It truly is time for all patriots of the world to unite!!
you should take into consideration the HUGE amounts of produce Israel exports to the EU…..it was somewhat diminished when they turned Gaza over to the ingrate Arabs there but is still substantial
I hope you are right, but when this escalates and blood is spilled, the war is on only one side will win. We need to support these farmers any way we can, pray for the people of the Netherlands.
It MAY be a turning point, or it may be like the Canadian Trucker Convoy;
It wasn’t THE “Turning point”, but it WAS a turning point, for many, not only in Canada but around the World.
When things like the protests in Australia, Canada Convoy, and now Netherlands happen, millions are red-pilled.
And as Sundance says, “Once you see the strings,..”
By their own reactions, they are damaging their cause, and helping ours.
Even some of the “celebs” are turning on the libs now when it comes to erasing women and all of the evil gender b.s.
It’s about time.
Now, if they would just realize their votes were stolen too, and only 100 years after they finally got one.
I think libs are sitting back realizing their rights are truly dwindling daily, including 2A, while we are being overrun with an illegal foreign invasion of epic proportions.
That’s how high schools in blue cities do it. Apparently, so do colleges now as well. And the US military.
It never ceases to amaze what incompetent govt bureaucrats can do to hide their incompetence, if they only put that much effort into doing things well.
I wonder what the tipping point of the “silence” will be, those trucking organizations are only silent because they know this administration will crush them if they act out.
Government should NEVER have that much power.
EC, make no mistake about it these evil folks are not incompetent because what they are doing is 100% intentional. They have some (many) very intelligent people working the details to undercut every aspect of each country’s economy. They have the most minute details worked out so as not to be apparent to anyone but the most diligent observers. Problem is there are likely thousands, or tens of thousands, of them scattered around the globe, especially in the world’s food producing countries. All designed to completely collapse the current system.
Since trucking companies are going to be crushed if they don’t speak out, they may as well get their balls out of the lockbox and step up.
None of this is incompetence. It is ALL intentional to destroy the USA and usher in a global NWO. Once you recognize this, everything they do makes more sense.
Don’t forget. When a new administration takes over, the numbers will reset to the truth so they can blame it all on the republicans.
Very good point Jimbo. Sadly.
Well, I blame it all on the Republicans.
Let me guess;
they found 81 million gallons of diesel at 3 a.m..
I hate living under communism…
While we had all our Republican Representatives, Senators and Presidents – how is it they got involved in EVERY aspect of our lives and the ONLY job they really have (securing our country) was left totally unattended.
I know, I know – the Dems are worse. But I think the colonists detested Benedict Arnold as much as they did King George.
“I know, I know-the Dems are worse.”
HOW, exactly are they any WORSE?
Republicons blocked all of PDJT’S nominees, and forced him to take THEIR dictated picks, and continued the charade to prevent recess appointments, but green lighted all of Brandons clown show incompetents.
The Republicans were behind “the Insurance policy” that Stroxz mansplained to page.
The Republicans have enabled what is called “the leftist agenda” and betrayed the Conservative base, my whole life (65+ years).
We CALL them “RINO” which stands for Republican In Name Only i.e. Democrat.
RINO=Democrat
Democrat=Conmunist
therefore,
RINO=Conmunist
Any questions?
It’s all Uniparty, all the time.
Imo, the enemy inside the gates (rino) is much worse than Democrats at this point.
Buttigieg for President in 2024, if ultra despicable RINO Turncoat Mitt Romney’s favorite POTUS choice Biden doesn’t run again!
The Dem candidate for president in 2024 will be Michelle Obama. Can’t you see it coming? Kamala’s inept. Joe Biden probably won’t make it until then. The Dems will do anything to keep the power. Who else do they have? No one.
I hope Big Mike runs
I will drive hundreds of miles just to heckle !
Newsome is running. Big mike doesn’t want the headache.
I think Tulsi Gabbard might be thinking of running for something.
Mostly, running her mouth.
“Who else do they have? No one.”
If Michelle runs, they still have no one!
I respectfully disagree. Running for the office of president is work. Michelle won’t do it. They’re rich and don’t need the money anymore.
I think Newsom , the HairGel guy, has votes in Dominion for 2024 already. Michelle would have to work so she’s out.
Dick Morris said he guarantees that H. Clinton will run.
I would think the trucking industry would catch on and hi-ball their numbers.
Just plot diesel prices – an upward trend – and use the next point on the graph. Just assume some rate of fuel inflation.
If you can’t get or trust government numbers, use a projected trend and then add a percent or two. Heck, offer a rebate if the actual fuel bills were off by too much on the high side.
I’m thinking that trucking companies are already thinking. Thay are not just sitting around twiddling their thumbs.
some contract terms are not manipulatable
for example, “you must use government table XYZ” as of a precise date
perzactly. We are talking fuel surcharges, which ‘kick in’ when fuel prices meet or exceed a certain amount, and in all liklihood, they all use the gummint #’s.
They can not just arbitrarily ‘pick a #’, this is going to play additional havoc with the Trucking industry, so for the Insane Idiots In Charge, its a “two-fer”, as they undoubtedly want to collapse the,Trucking industry entirely.
All that carbon based “fossil” (eye roll) fuel the truckers burn? THEY want to eliminate in 8 years.
Dutchman: “[…] as they undoubtedly want to collapse the Trucking industry entirely.”
Absolutely, and replace it with what… a hunter-gatherer society?
I guess they will work on that little detail after a few hundred million people die off.
Thanks for the info, Stu. I’m not at all familiar with trucking contracts.
But I still think the trucking industry is not twiddling their thumbs. They have to be busy trying to come up with a work-around, just not what I was guessing.
And anything they come up with won’t be implemented until current contracts expire, so there will be some chaos while current contracts are in force.
The industry standards, including DOD, all rely on this DOE information. When the first fuel spike came around Year 2000, most shippers turned to a calculation using a “peg”for a starting fuel price, then adding perhaps one cent per mile for each six cent per gallon price increase. It was necessary so that a shipper using 27 carriers still pays a single uniform fuel surcharge across all 27 carriers. This in turn is used to provide a delivered price for the seller’s goods when offering a sales quote. It is absolutely essential that this info come back online now.
I couldn’t remember the year, but I do remember the surcharges. But you’re saying they still need a peg and the DOE info is it.
I’m getting a bit of an education here. This adds detail to Sundance’s article.
Thanks!
Feds are at war with citizens.
They are misanthropes.
Have been at war with citisens for a long time, only NOW we are aware.
“INCOMING!!”..
we are not citizens- we are The Help
So when companies start to go broke, then what? Is puff the magic Trans Secretary just going to wave his magic wand and move products around the country?
According to FJB and his band of merry communists- Yes.
There just aren’t any limits to the low’s they will stoop to, is there? Just when I think they’ve reached the lowest, most underhanded, lying scheming, level they can go to trick people, they come up with a new way to lye and cheat! Good grief. What a bunch of criminal scumbags.
Will any Cabinet secretaries resign (like in UK) over Biden gov’t continually lying to the people?
Not a chance! Take down Boris Churchill and one of his own ministers just might become the next PM.
Not so in the US, even if we did have fair elections.
We are in such deep sh–!
Originally the EIA said, “We are implementing new methodology to estimate weekly on-highway diesel fuel prices. On June 13, we started conducting the On-Highway Diesel Fuel Price Survey using new statistical methodologies.”
——
Their new methodology will be to poll Twitter users for the weekly on-highway diesel fuel price. Follow the
FauciScience!EVERYTHING is about manipulation; about deceit; about propaganda to trick the American people. We might have been asleep, but they mistook that for being stupid.
Good post, this habit of the Dems was the primary reason I know the 2020 election was rigged… this style is their nature.
Don’t these transportation people know what truckers are paying for fuel? The companies picking up and delivering their products know precisely what their drivers are paying. They collect the receipts.
The trucking companies add a fuel surcharge in addition to prices negotiated under contract. They use an independent source for he added fuel cost to prevent fraud. If they are using the government number, they may be limited to what the fuel surcharge may be meaning they may not be able to cover their costs.
They do, but many contracts are written to some ‘offical’ number.
It’s not called the District of Corruption for nothing.
I am beginning to wonder if we have a scorched-earth strategy at-play against us. They know they will bottom-out very soon and lose control. It’s as though they want to leave an uninhabitable landscape behind them. Heaven help us!
Never forget, they are all parasites by definition.
In short, they need us, we don’t need them.
Good post but I made a correction… delete “am beginning to wonder if ” and replace with “I know for sure”
Thanks.
It’s their usual effort at incrementalism taken to the extreme. When they lose, they’ll sit back and wait for the next time, knowing they moved the yard stick yet again.
F them ALL.
The trucking companies know exactly what they are paying for fuel. They don’t need some govt drones to tell them what to charge. The breaking point will come soon enough. And then we shall see what we shall see! One thing is for sure, the traffic on the Ohio turnpike is gonna be a whole lot lighter
It wouldn’t matter much the cost of none is available which is already happening.
The biden crime syndicate doing what it does best………
Lying, cheating & “massaging” the numbers.
The CDc is doing the same thing. They were going to update their system but have failed to publish data on excess deaths since a very astute analyst starting tying the numbers to the shots.
Then you’ve got all your post-crime coverups like the DoJ’s 17 wiped phones….
Our government is a criminal enterprise.
When a criminal enterprise includes the watchdogs, the crime investigation agency and the prosecution agency, exactly who is going to stop them from doing anything they want?
Just a sidenote, when you have “bad” people running govt., at any level, nothing “good” will happen, even if they try.
It’s impossible, for those that are “bad/evil/corrupt/demented” to produce/conceive anything “good” and all they will do is attract all that is “bad” like a magnet.
Mass shootings, supply chain issues, etc., didn’t have these issues at the level the USA does now when there were still “good” ones around.
My hate grows stronger!
As does mine. As it does for many here.
How long has this existing system of reporting diesel prices been in operation?
I’d bet, quite a long time.
Now, all of a sudden they need a new methodology?
WTF for?
Oh wait.
Never mind.
Seems like the freight companies could simply call up the Gas Buddy guy and ask him the average price of diesel. He’s on Fox Business about every other week.
I prefer the vehicles I ship by truck still get moved AND the transporter stay in business. I’ll actually reach out tomorrow to discuss this problem. If my trucker/transporter goes out of business I’m out of business. What a bunch of jackwagons.
Please keep us informed. Thank you.
What can or is being used by the trucking companies to replace EIA estimates, since they can not afford to rely on government information going forward? And, how can we get our hands on this information?
“Originally, the EIA said, “We are implementing new methodology to estimate weekly on-highway diesel fuel prices. On June 13, we started conducting the On-Highway Diesel Fuel Price Survey using new statistical methodologies.” {LINK} However, the EIA has not updated anything since that announcement”.
As a result, all of the transportation charges and fuel surcharges have been underestimated and priced for almost a full month. The political motive for this move is transparent, it stops higher diesel prices from being passed along in the supply chain… which gives an artificial pause on inflation that comes as an outcome of higher diesel transportation costs
Another example of leftist magical thinking.
Is the dept of energy trying to put the truckers / shipping companies out of business? I highly doubt there’s a profit in the surcharge. If it’s not calculated correctly (it’s lower than cost) then the difference comes out of their pockets. They won’t be able to keep that up and stay in business.
If an honest Attorney General is ever appointed, there should be “honest services” and lying to government official prosecutions for all the intentional distortion of government reports relied on by citizens and businesses. “Dishonest services” prosecutions have been severely limited by the SC, but lying under 18 USC 1001 is still pretty broad:
“…whoever, in any matter within the jurisdiction of the executive… branch of the Government of the United States, knowingly and willfully—
(1)falsifies, conceals, or covers up by any trick, scheme, or device a material fact;
(2)makes any materially false, fictitious, or fraudulent statement or representation; or
(3)makes or uses any false writing or document knowing the same to contain any materially false, fictitious, or fraudulent statement or entry;
shall be fined under this title, imprisoned not more than 5 years …”
“New methodology” to hide the material facts of actual diesel prices used to cover actual costs in commercial contracts, should be actionable, IMHO.
A major problem with criminal behavior of corrupt politicians is corrupt and partisan-biased prosecutors “exercising prosecutorial discretion” by not enforcing the laws against their corrupt buddies. One approach is qui tam enablement of citizen enforcement on behalf of the government, like the qui tam government fraud statutes and RICO statutes.
An example would be a statute authorizing any voting citizen to sue perpetrators of vote fraud to collect vote fraud fines. This would permit discovery, subpoenas and under-oath evidence/testimony. A Criminal Statute with a simple $100 fine per fraudulent vote, with qui tam enforcement jurisdiction against anyone voting fraudulently, conspiring or enabling fraudulent voting, or refusing to investigate fraudulent voting, would result in less fraudulenbt voting. It would also create “leakers” who could get rich by turning evidence against on their corrupt vote-fraud bosses.
Fundamental transformation ended any hope of any prosecutions of outwardly evil side of the ideological spectrum.
Trucking companies will recoup that so expect even higher surcharges.
The Study, clearly outdated, is still suggesting to me that the major carriers will need to pay for a third party to create accurate information going forward, if an EIA estimate is still needed by the carriers. Making the government supplied EIA estimate useless. Trucking companies can not run their businesses based on fabricated information. Making the government supplied information for EIA propaganda.
Accounting for this non-response bias is challenging; however, there is a statistic of particular
relevance that serves to bolster the validity of the study. The six carriers who participated
represent 35.5% of the 2005 freight revenue listed on the Transport Topics Top 100 for-hire LTL
carrier segment (TT 100 2006). To further validate the study, a quantitative examination of
published LTL carrier fuel surcharge policies has been conducted and utilized to cross reference
carrier responses. As outlined in the study invitation and consent agreement, names of the six
carriers will not be divulged in these findings.
https://intrans.iastate.edu/app/uploads/2018/03/ltlcarriers.pdf
I love Sundance, but he missed this one a bit.
im retired since January.
I made Lasko box fans in Franklin Tennessee.
we consumed 2 truckloads of steel per day.
The steel was contracted MONTHS in advance.
The delivery part of a long term contract included the price of fuel
at the time contract was signed.
Fuel surcharges are nothing new to the manufacturing base in America.
at the time contract was signed.
Fuel surcharge was part of every delivery.
They drive the roads every day, they know the price of fuel.
Be didn’t miss anything. You are correct- fuel costs are priced in at contract. And thus surcharges are needed- to compensate for the inflation from the time contract is inked and when it hits the road. Surcharges cover that gap…
He’s spot on.
I’m in the business, and I’m going to boldly say that you are incorrect. Most trucking contracts in 2022 have a base mileage rate plus a fuel surcharge that adjusts weekly. I understand your “months in advance” contract, but carriers are not absorbing these volatile costs, and they haven’t been for many years. The steel is contracted but the freight is not.
That was a very dirty trick the Department of Energy played, knowing how important their published reports are to so many entities, and the very security of the United States.
As to further motives for this action (?), it almost doesn’t matter. They are up to no good. THAT WE KNOW!
I don’t believe for a second that they were hacked (the new ‘my dog ate my homework’ excuse!).
But there are other possibilities, i.e. the government may want to offer the truckers some smoky-backroom-perk to offset their current costs, hence less costs would be passed on to consumers. Or, the totally cynical interpretation, i.e. the government really wants to ramp up the shock and awe with sudden, large increases in food prices, so that Repubs will feel the heat by opposing emergency aid packages to assuage consumers while the latter are drowning in deep waters.
It should be clear that the Dem aid packages to alleviate the sudden poverty of the US populace that they themselves (willfully!) caused so as to come heroically to the rescue, will return to the Senate floor ultimately before the election.
THAT is as certain as death, taxes and dirty politicians!
All the Federal statistics are cooked, just look at http://www.shadowstats.com/ for the numbers as they were figured in the 80s and 90s. Inflation, unemployment, GCP, you name it. The 80s based inflation number is almost 17%.
Yes, indeedy! This is just one small division of one office of one bureau in just one massive Department of the entire government bureaucracy that is quietly changing the methods and practices of gathering and reporting “facts and figures.” It is, and has been, happening in 1,000’s of ‘unseen and unnoticed’ little bureaucratic fiefdoms through the government.
Gas Buddy, or trucking/shipping companies need to put together their own crowd funded platform that truckers can post observed prices to.
What we are seeing is every form of government function being bent to political purposes, even down to mundane and obscure governmental statistical issuances that industries have heretofor relied on for decades.
In a way, I look at this as a good thing, because the more people have to route around biased or deliberately withheld information, the more private citizens have to find or create a substitute themselves. This was not possible 50 years ago, but it is now.
You know, it’s on these private groups to get an analyst and at least ESTIMATE what they think it should be. If they are all still going off the June 13th data despite watching inflation infect everything else, then they’re not very responsible business managers,
Another government agency run by unelected bureaucrats with zero accountability. Drain the swamp!
We can see how abusive Buttijuice is with us; can you imagine how he treats the children he adopted with his “husband”?
This hiding the real cost strategy will put shipping and trucking companies in a bind and ultimately out of business
Trying to regulate diesel prices will either increase the cost per gallon or create diesel fuel shortages. The laws of unintended consequences will be in effect.
CDC and (trickle-down) state & county health agencies did the same thing with Covid stats, including vax stats. As soon as the public gets a sense of what the trend is and how things work, the model is changed. For example, the stats regarding the public support of vaccines administered, 1st dose, 2nd dose, and booster(s), began to be manipulated when it was apparent that people were a) having serious second thoughts or b) simply concluding that The Gov is full of BS and they’re not going to play.
The gov’t will ALWAYS make their numbers move to reinforce rather than contradict their agenda.
Liars figure and figures lie.
The CDC is doing a similar thing with weekly death counts by state.
From the Ethical Skeptic who has been mapping excess non-covid deaths (among other things):
It’s not rocket science…..
Average US diesel price on date…..
Average US diesel price on later date…….
Difference is X……which is Y% rise/fall…..
We raise/lower fuel surcharge by Y%.
C’mon man……!!!
But most trucking contracts specifically refer to the EIA weekly report. Sure, we can use something else eventually, but this is a mess.
“One way to tackle inflation is to take away accurate government statistics, that are used as accepted benchmarks by private industry, to calculate downstream prices.”
We will see the effects of this down the road as it causes trucking companies who are already hit hard by high fuel prices, to go out of business. Then shipping costs will sky rocket.
Energy pricing across the board is being manipulated. I have a friend who lives in FL. In his particular county, JEA is the controlling electrical utility. His bill jumped by over $80 in June to $180/mo. He called JEA and was told:
My friend asked the obvious ‘how does JEA determine whether the grid is providing solar or fossil fuel generated electricity?’ Answer: ‘it cannot.’
Message? The agenda is being implemented now transition ready or not. Surcharges will be the ‘vehicle of change.’
I’m in the business and wait eagerly for these stats each week. On week two I told my partner “this is on purpose”. Change the methodology indeed. They’re going to artificially reduce the reported price of diesel when we need the fuel surcharge adjustment the most. FJB
Yes — much like how the feds have been jiggering the CPI figures for years (decades?) now.
See, e.g., Shadowstats.com …