The recent out break of the Swine flu has caused oil prices to drop. Oil per barrel is down below $50. Oil under $50 is definitely good for trucking. That is roughly 1/3 of last years record high.
Trucking however can’t seem to catch a break. With all that is going on politically with NAFTA a flu outbreak like the swine flue is bound to be bad for business. The fact that Mexico has been named the source of the flu is certainly not going to help matters. This outbreak has caused Truck Stop Clinics like the Professional Drivers Medical Depot in Knoxville, TN to slow down and start taking a closer look for evidence of the swine flu. CEO for the company, Dr. John McElligot in a discussion about the distances a truck driver can travel in a day was quoted saying “it’s truckers that spread things.” (Quote from the Associated Press)
Even a Truck Driving School student can travel more than 500 miles per day. A seasoned veteran can drive even more. A trucker from southern Texas can make it the eastern seaboard in just a few days. Facts like this don’t do much to glamorize the trucking industry or the publics perception. The public should feel some comfort in knowing that the industry has taken many steps forward in the recent past. Certainly the extra precautions being taken by Dr. John McElligot and his company are a step in the right direction for this type of epidemic.
More updated information provided by Mexican Health Secretary Jose Angel Cordova, now says the suspected death toll in Mexico has climbed to 149, with 20 of the suspected cases already confirmed to be from swine flu. Still No American deaths have been attributed to the flu.
The lower oil prices are a definite silver lining in this incidence for trucking. The hard working truck driver who keeps his equipment rolling will feel the benefits of the lower priced oil. Another positive note maybe that oil market analysts are now predicting that oil prices mostly likely will not rise or gain significant upward momentum in current market conditions.