FHWA Talking Freight Seminar Series: Energy Issues and the Impacts on Freight Transportation Richard Moskowitz American Trucking Associations May 17, 2006.

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Presentation transcript:

FHWA Talking Freight Seminar Series: Energy Issues and the Impacts on Freight Transportation Richard Moskowitz American Trucking Associations May 17, 2006

Background Fuel Issues Diesel is Essential to Trucking Trucking industry consumes 36.4 billion gallons of diesel Fuel is typically the 2 nd largest expense (20-25%)

The Price of Diesel Fuel 2006 $98.3 billion

Sources: A.G. Edwards & ATA Trucking Failures vs. the Price of Diesel Fuel Failures only includes fleets with at least five trucks

Transition to ULSD 2006 Highway diesel fuel sulfur cap of 15 ppm What exactly is 15 ppm S ?

Why ULSD? Enables use of advanced emission control technology (2007) –PM Traps –EGR Clean Air is not free –Cost of new engines –Fuel Economy –Maintenance Costs –Engine Life (?) X

ULSD – Refinery/Production Status 2005 Precompliance Report (90% ULSD) ULSD Dominant Fuel across all PADDs

Will ULSD be Available Everywhere? Potential for Product Contamination –Gasoline < 80 ppm –Jet Fuel < 3,000 ppm –Heating Oil < 5,000 ppm Handoffs (add 1 ppm) End of the Pipeline Issues Localized shortages could cause dramatic price spikes

Will ULSD Cost More than Conventional Diesel Fuel? ULSD will Cost More –EPA estimates 5 cents –Distribution costs –Dedicated tank trucks? Difference between cost and price Energy Content

Will ULSD Affect Performance ? ULSD energy content Lubricity (Additives / B2) Solvent Effect Consequences of misfueling (?)

Tank Truck Concerns Ensuring Product Integrity Liability for Product Contamination Sulfur Testing Concerns Switchloading Static

Potential Supply Disruptions Catch 22 solutions

Questions Richard Moskowitz American Trucking Associations