Trucker Strikes / Fuel Protests go global - Spain truckers still on strike

Updated title of this post to better reflect the global nature of these protests.

Updated 6-13-08: Spain is still a mess and striking drivers actually tried to burn a fellow driver who broke the strike. Luckily the man escaped, but with severe burns. But it should be noted that the government reached agreement with non-striking unions for tax relief and other measures - the striking drivers are reported to be about 12-15% of the trucking industry in Spain and mostly independent drivers.

In the UK the Army is being put on standby in case the current strike of 500 tanker drivers spreads to other drivers or industries. Currently it appears to be limited to Shell drivers, although there are reports that tanker drivers from other companies are showing solidarity.

Drivers in Portugal supposedly ended their strike after reaching a deal with the government.

There are reports of strikes and protests in various countries around the world, this article, also linked above, has some photos as well:

The Philippines:

Hundreds of lorries and minibuses blocked roads in Manila leading to Malacanang Palace yesterday to demand the lifting of a 12 per cent sales tax on fuel.

Thailand:

In Thai capital Bangkok, tens of thousands of heavy lorries threatened to cause havoc as farmers demonstrated and fishermen have begun burning their boats in nationwide protests against soaring prices of fuel and other essentials.

Lorry drivers’ leaders have warned the government it has until next Tuesday to subsidise their fuel or face at least 100,000 vehicles rumbling into Bangkok.

Finance Minister Suraphong Suebwonglee said there were plans to help reduce transport costs.

Malaysia:

Opposition groups in Malaysia have vowed to push on with mass protests against a 41 per cent hike in petrol prices - despite a pledge from the Prime Minister to keep prices fixed for the rest of the year.

Malaysia is Asia’s largest net oil exporter, earning £38 million a year in revenue for every 50 pence rise in crude prices.

Protesters demanded to know why rising profits from oil exports were not being used as subsidies to the poor.

A march was due today in Kuala Lumpur to the Petronas Twin Towers, headquarters of oil giant Petronas.

South Korea:

Also in Asia, South Korean lorry drivers voted to strike on Monday, ignoring a £5 billion government aid package designed to cushion the impact of fuel price rises.

Here’s more on the fuel protests in Asia from the NY Times.

Previous Update: While not approaching the level of the strikes in Spain, it’s now global:

Protests were also staged elsewhere in Europe and across Asia. Around 50,000 Polish lorry drivers held one-hour protests across the country although without blocking roads, the organisers said.

And Dutch truckers announced plans to block roads at 18 points across the country for 30 minutes on Thursday.

In Thailand truck drivers voted to begin strikes next week and block roads to the capital with 400,000 lorries unless the government helps them pay for soaring fuel costs.

While in Hong Kong about 500 minibuses, lorries, garbage trucks and coaches staged a go-slow protest, crippling traffic in a demonstration calling for fuel taxes to be scrapped.

Communists burned tyres and blocked roads in parts of eastern India angered by fuel price rises but elsewhere in the country calls for strikes were largely ignored.

In South Korea truckers voted to strike on Monday, ignoring a $10.2 billion (£5 billion) government aid package designed to cushion the impact of soaring fuel prices.

Independent truckers here in the U.S. failed to garner much support in their much publicized nationwide strike back in April. I wonder now if the current strikes will embolden U.S. truckers here to try again. My guess is that another “strike” wouldn’t be too successful coming on the heels of their recent unsuccessful attempt.

I obviously don’t know the inner workings to the trucking industries in the various countries around the world. I do know that fuel taxes in Spain and elsewhere in Europe are incredibly high, leading to some of the highest fuel prices in the world, and also that their trucking industries are much more heavily regulated than here in the U.S. Striking to suspend or end the fuel taxes is one thing, but asking governments to help when they are part of the problem due to taxation and regulation doesn’t seem to be a productive solution. While I can’t speak to how the trucking industry works in other countries, I’m still waiting for answers to questions I have posed in the past:

I never did get any real responses to any of those questions, I can only assume no one had a reasonable answer. This the free market at work. Independent drivers can complain all they want about not getting their fair price for loads, but then why are they agreeing to such low prices? Brokers and middlemen quote prices for loads and drivers can agree to accept the price and do the job or decline it. If the market rate is truly so low that you can’t make money, then perhaps you need to talk to your fellow drivers who are accepting such rates. Not happy about the price your broker is giving you? Don’t accept it - work with someone else. Got stiffed by a customer? Welcome to the party, pal, that’s business. It happens to every company, every industry, at least once in a while. Guess what? The wonderful thing about a free market economy is that no one can force you to do business with that customer again - you are free to stop doing business with them ever again.

Original Post 6-9-08: I should have posted about this this morning, but had some urgent business to attend to with my day job. We had heard rumors and speculation all last week about a possible truckers’ strike in Spain that was supposed to happen on Sunday, June 8th. Sure enough, while watching the news over the weekend, I saw that it had already started. One of my 3PL contacts in Spain confirmed it as well - it’s expected to have a huge impact, obviously, on the ability to get goods to and from the ports and markets. Here’s a news release via Yahoo!:

Across Spain, about 70,000 truckers joined the strike Monday, according to Desirée Paseiro, a representative of a truckers’ association that is threatening to paralyze the country unless the government introduces measures to lower fuel bills.

The strike has alarmed many people, who already have begun lining up at gas stations and supermarkets for fear that supplies will be cut. Wholesale food markets like Mercamadrid stocked up on fish and meat over the weekend so their stalls would not be left bare.

On Monday morning, groups of slow-moving trucks blocked the major highways that surround Madrid in a so-called snail protest that snarled traffic. Some food distributors fear that their trucks will not be allowed to roll.

“We are the ones who move the merchandise that this country needs to function,” Julio Villascusa, a truckers’ representative, told the Cadena Ser radio station on the eve of the strike. “If we don’t have the money to keep buying fuel to offer this public service, well, then, this country comes to a halt.”

Spanish truckers say the price of diesel, which varies among European countries, was the equivalent of $7.73 per gallon, compared with $5.58 per gallon a year ago. At that price, they argue, it costs them more to buy fuel than they earn from trucking contracts.

It should be noted that fuel prices in Europe are drastically higher than in the U.S. thanks to exorbitantly high fuel taxes, where fuel taxes can account for up to 70% of the price, according to the above article. And while we may complain about trucking industry and trade regulations here in the U.S., the trucking industry in Europe is far more controlled and regulated than here. The word from one of the ocean carriers is that talks between the transport associations and the Ministry of Transports is ongoing. I expect that the situation will rise to the level of the EU as, according to the article above, Spanish truckers are also blocking the border with France and Portugese drivers are participating as well.

Here’s more from FleetOwner.com:

According to an Agence France-Presse (AFP) report, Spain’s second largest union, Fenadismer, which said it represents 70,000 truck drivers, began an open-ended strike today by jamming main highways, including several points along the border with France.

A second group, the Platform for the Defence of the Transport Sector, which said it represents 50,000 truckers, walked off the job last week and said they plan on disrupting the opening of the International Exposition in Zaragosa this weekend. Because of the strikes, the number of trucks delivering to wholesale markets were far lower than normal, the report said.

French truckers have become entrenched in the strike as well, holding protests near the Spanish border and in the southwest part of the country, disrupting traffic at border posts and stopping trucks from crossing, AFP said.

The report added that in Spain’s neighbor, Portugal, truckers threatened to “paralyze” the country, leading to many trucks parked at fuel pumps being attacked and having their windshields shattered.

And here’s some interesting input from InvestorCentric Blog:

The truckers know that the country can’t run without them and they are making their voices heard, but are they going to be successful in their campaign? Part of the problem is that the Spanish government has a limited number of options available to it thanks to its arrangement with the EU. For example, it is required by the EU that member countries place at minimum a 15 percent value add tax (VAT) on fuel. In addition, the EU restricts the use of certain fuel subsidies, according to the BBC.

What the truckers want is more money to account for the business cost increase of more than 20 percent, and one way or another, they are going to have to get it. “We have no more solutions. We can’t afford diesel any more. It’s as simple as that,” Jean-Claude Ferrand told Spanish national radio, according to the BBC.

If the government can’t offer subsidies what they might have to do is help negotiations between the truckers and the suppliers. Ultimately, either the government offers a subsidy or the suppliers are going to have to pay more to have their goods delivered. Looking at the options available it appears that likely the suppliers will be the ones fronting the costs, which of course will be represented in price increases and in the end borne by the consumer. Either way, though, it was going to come down to the consumer; they were going to pay for it either through their tax dollars or through increased goods prices.