Over Regulation and High Diesel Prices Affect the Transportation Sector

Well over the road diesel fuel is approaching $3.00 per gallon on its way to $4 with expected oil barrel prices of $85.00 by mid summer 2006. This of course is taking into consideration Hurricane Season Supply pressures and the Iranian nuclear weapons showdown. But meanwhile the Department of Transportation will not let up on the whole thing and the incessant over regulation.

What can we expect in this type of economic climate? Well what happened last time these factors came together? Well, we saw massive consolidation in the transportation sector. Lets flash back to 2001 and discuss what happened then. Here is an excerpt of an article I wrote during that period;