https://noqreport.com/2022/05/01/inflation-food-shortages-and-supply-chain-collapse-skyrocketing-diesel-is-the-existential-threat-nobodys-talking-about/

Editor’s Commentary: Truckers, loaders, and machine operators have been taken for granted. Their efforts are absolutely crucial to our economic infrastructure and supply chain stability. Even incremental shortages of labor or equipment can cause massive chain reactions, which we’ve seen playing out as the supply chain crisis of 2021-22.

It’s about to get worse. Much worse. Diesel drives more than just the trucks. It’s the fuel that powers much of the equipment without our supply chain as well, and its cost is skyrocketing much faster than unleaded gasoline. No other component of the American economy has a more direct effect on the prices of literally every physical good transported anywhere in the nation than the trucking industry.

The cost of diesel doesn’t just affect how much it costs to transport goods and thereby the prices of those goods themselves. It also contributes to decision-making on what to transport where. For example, an east coast company may decide it’s simply not cost-effective to ship their goods to the west coast if diesel prices continue to rise. That could cost jobs on top of lost revenues.

What makes it all worse is that nobody in media, corporate or otherwise, is really talking about this. The handful of independent journalists who are ringing the alarm bell aren’t getting nearly enough traction to make enough Americans aware. We desperately need lawmakers contacted so we can talk some sense into them regarding what’s coming down the pike.

MyPillow 3

The article below by Mary Villareal from Natural News details why we should be extremely concerned about the state of diesel prices and how it will generate a massive economic domino effect if we do not get things turned around immediately…

No Signs of Slowing Down: Diesel Price Jumps 42.8% From Beginning of the Year, Way Ahead of Gasoline’s 25% Increase

The increase in diesel price has raced past that of gasoline. Data from the Department of Energy‘s Energy Information Administration (EIA) showed that diesel price has jumped a staggering 42.8 percent while the price of gasoline has increased 25 percent from the beginning of the year.

Given the enormous role of Russia as a supplier of diesel, it is easy to blame the ongoing war between Russia and Ukraine for the soaring prices. However, the increase in the price of diesel compared to crude and gasoline began even before the war started.

The price that truckers and motorists pay at the pump is determined by the price of crude. But if the relationship between crude and diesel goes through structural changes that tack on another 10 to 15 cents a gallon to the spread, those gains are going to impact the retail price of diesel even if crude price remains unchanged.

The spread of the prices was just under 40 cents per gallon a year ago but has now increased to up to $1.20. The spread crossed the $1 per gallon mark on March 18 of this year after starting the year at only 27 cents.

But the retail price is already at the end of a long supply chain that includes oil production, the selection of the types of crudes for a refinery to process, and the split output that includes gasoline, diesel, jet fuel, and other products. The growth in the gasoline-to-retail spread is ultimately the final step after changes in the spot products market. (Related: Germany, Austria move closer to rationing gas supplies.)

Diesel prices driving up costs of goods

As consumers notice the spiking gasoline prices, energy industry analysts say the current spike in diesel prices is historic in the sense that it is pushing up costs of goods. Now hovering at all-time highs, diesel prices are being forced upward by the same circumstance that fueled gasoline’s rise.

Patrick De Haan, head of petroleum analysis for GasBuddy, said the price of fuel is the bigger headline as nearly everything people buy is at some point freighted in a vehicle powered by a diesel engine, including ships and barges, trains, trucks and even some airplanes.

Z-Stack 1

This massive increase is hitting consumers hard, including truckers who spend nearly twice the amount for fuel per week. Freight industry analysts also suspect that the very fragmented and volatile trucking industry will likely experience another severe recession, with others going as far as calling it a bloodbath.

“We see when fuel surges as much as it has over the past couple of months, that’s usually when we see a lot of trucking bankruptcies follow,” said Craig Fuller, founder and CEO of industry tracker Freightwaves.

This is bad news for the nearly two million trucking companies in the United States, the vast majority of which are smaller businesses with just a handful of trucks. (Related: Newsom wants to spend $11 billion to give Californians $400 gas cards, throwing more incendiary money into an already inflationary economy.)

“These small operators that live essentially on the cash flow of their trucking operations are not prepared and don’t have the balance sheets or the cash position to absorb these instantaneous shocks to their cash flow,” he said.

MyPatriotSupply 6

Follow Bubble.news for more information about the rising oil and gas prices.

Watch the video below to learn more about why oil prices are getting so high.

This video is from the channel The Morgan Report on Brighteon.com.

More related stories:

Sources include:

MyPillow 1


New Conservative Network Seeks Crowdfunding Help

They say we have to go big or go home. We’re trying to go big and bring the patriotic truth the the nation, but we need help.

Readers may or may not realize that over the past year, we’ve been bringing more conservative news and opinion outlets under our wing. Don’t take our expansion as a sign of riches; all of the “acquisitions” have been through sweat and promises of greater things to come for all involved. As a result, we’ve been able to bring together several independent media sites under a unified vision of preventing America from succumbing to the progressive, “woke,” Neo-Marxist ideologies that are spreading like wildfire across America.

The slow and steady reopening of America is revealing there was a lot more economic hardship brought about from the Covd-19 lockdowns than most realize. While we continue to hope advertising dollars on the sites go up, it’s simply not enough to do things the right way. We are currently experiencing a gap between revenue and expenses that cannot be overcome by click-ads and MyPillow promos alone (promo code “NOQ” by the way).

To overcome our revenue gap and keep these sites running, our needs fluctuate between $3000-$7000 per month. In other words, we’re in the red and hemorrhaging.

The best way you can help us grow and continue to bring the truth to the people is by donating. We appreciate everything, whether a dollar or $10,000. Anything brings us closer to a point of stability when we can hire writers, editors, and support staff to make the America First message louder. Our Giving Fuel page makes it easy to donate one-time or monthly. Alternatively, you can donate through PayPal as well.

As the world spirals towards radical progressivism, the need for truthful journalism has never been greater. But in these times, we need as many conservative media voices as possible. Please help keep NOQ Report and the other sites in the network going.

Thank you and God Bless,
JD Rucker

Bitcoin: 32SeW2Ajn86g4dATWtWreABhEkiqxsKUGn

MyPatriotSupply 6

All ORIGINAL content on this site is © 2021 NOQ Report. All REPUBLISHED content has received direct or implied permission for reproduction.

With that said, our content may be reproduced and distributed as long as it has a link to the original source and the author is credited prominently. We don’t mind you using our content as long as you help out by giving us credit with a prominent link. If you feel like giving us a tip for the content, we will not object!

JD Rucker – EIC
@jdrucker


You Might Like
Learn more about RevenueStripe...