Archive for May, 2008
May 29th, 2008
What does the deal between UPS and DHL mean for Chicago Rockford International Airport?
Airport Executive Director Bob O’Brien suspects it’ll mean a boost in cargo coming through here. DHL only flies one plane a day between here and Bloomington. But UPS’s second-largest hub in the country is here, and they already fly about 25 planes a day. If UPS takes on DHL air business, O’Brien said, it stands to reason that more of that traffic would go between UPS hubs. Plus, O’Brien said, Rockford has more room for growth than UPS’ largest hub, Worldport in Louisville.
UPS spokeswoman Christine Hand said it’s too early to say what the local impact is until the deal is finalized.
If you’re a DHL customer, you’ll still apparently be served by that company and its trucks. Your packages will just fly in different planes.
May 21st, 2008
Rockford gas prices remain at $3.95 at many stations today, a week after they first hit that mark. But over that week, the average price for the metro area, the state and the nation all rose at least five cents. Meanwhile, since Friday, oil prices have risen 11.5 percent. It’s clear that gas retailers are waiting as long as they can to hit the $4 mark here. But as their supply costs continue to increase, they’ll have to pass that on to the customer soon.
Linda Casey, spokeswoman for Marathon Petroleum - which operates several gas stations and a supply terminal here in Rockford - said gas stations are not fully passing the cost along to consumers. On May 13, 2005, oil was at $45.12 a barrel, according to the U.S. Energy Information Administration. Through May 16 of this year, oil prices jumped 166 percent. Gas prices in that period rose only 74 percent.
“We are truly not where gasoline should be based on what we’re paying for it,” Casey said. Basically, retail margins are dropping precipitously, so they’re making less profit on a gallon of gas. But if they raise the prices too much, they scare customers off, and they lose sales both at the pump and in the store.
If you see $4 regular unleaded, let me know at 815-987-1343 or tbona@rrstar.com.
Now on to the prices (data courtesy of AAA’s fuelgaugereport.com):
Gasoline: Rockford increased a third of a cent to a record $3.92 a gallon for the metro area. We’re up to fourth in the state, as Peoria ($3.91) and Bloomington ($3.90) slipped behind us. The state average dropped a tenth of a cent today, remaining at $3.98 a gallon and a fraction of a cent shy of that record. The national average rose almost a cent to a record $3.81 a gallon. Illinois has the fourth-highest gas prices in the nation.
Diesel: All prices here are records. Rockford increased a cent to $4.62 a gallon today, while the state average rose more than a cent to $4.61 a gallon. We still have the second highest diesel prices in the state. The national average increased about two cents to $4.56 a gallon. Illinois is tied with the 16th-highest prices in the country.
May 20th, 2008
According to reports in other media, Southern Skyways has cut its Bridgeport, W.V.-Myrtle Beach, S.C. route and its Charleston, W.V.-Orlando route. In both cases, it’s due to high fuel prices. Rockford’s routes are still on the Web site, and there’s no sense they’re in trouble. However, the airport director in Charleston seems to indicate Rockford’s Myrtle Beach route may stop in Charleston on the way in and out. No confirmation on that, though, and we’re checking on it. Watch BusinessRockford.com for an update later today.
May 20th, 2008
It’s been almost a week since Rockford gas stations hit $3.95, and still no movement. Yet, oil prices continue to go up, so something’s gotta give soon. If you see $4 regular unleaded, let me know at 815-987-1343 or tbona@rrstar.com. Also, let me know if high gas prices have made you change your Memorial Day travel plans.
Now on to the prices (data courtesy of AAA’s fuelgaugereport.com):
Gasoline: Rockford increased two tenths of a cent to $3.91 a gallon for the metro area, back to an all-time record. We remain sixth in the state, as other metro areas barely moved. The state average rose a tenth of a cent today, remaining at $3.98 a gallon and a tenth of a cent shy of that record. The national average rose almost a cent to a record $3.80 a gallon. Illinois has the fourth-highest gas prices in the nation.
Diesel: All prices here are records. Rockford increased almost three cents to $4.61 a gallon today, while the state average rose half a cent to $4.59 a gallon. We still have the second highest diesel prices in the state. The national average increased about two cents to $4.54 a gallon. Illinois still has the 15th-highest prices in the country.
May 19th, 2008
Rockford gas stations seem stuck at $3.95 a gallon, but could the increased demand of Memorial Day traffic push prices over $4? I’d bet on it, given how volatile the market has been this spring. What’s interesting is that recent history shows an inconsistent trend in the run up to Memorial Day:
In 2007: The Illinois average was almost $3.46 the week before Memorial Day, and steadily rose to $3.52 by the end of the week. After Memorial Day, prices fell as far as $2.95 by early July before going back into $3 territory.
In 2006: The Illinois average was almost $2.93 the week before Memorial Day, and prices fell to $2.88 by the day after Memorial Day. Then they rebounded and hit $3 by July.
In 2005: The Illinois average was almost $2.11 the week before Memorial Day, falling to $2.08 the day after Memorial Day. Then they started their upswing.
In 2004: The Illinois average was $2.10 the week before Memorial Day, increased to almost $2.12 the next day and then fell back to $2.10 by Memorial Day. Prices eventually fell as far as $1.85 that September before rebounding.
The takeaway? I have no clue what’s going to happen this week or into the summer. If you see $4 regular unleaded, let me know at 815-987-1343 or tbona@rrstar.com. Also, let me know if high gas prices have made you change your Memorial Day travel plans.
Now on to the prices (data courtesy of AAA’s fuelgaugereport.com):
Gasoline: Rockford held at $3.91 a gallon for the metro area, a tenth of a cent below the record set Friday. We’re still sixth in the state. The state average rose to a record $3.98 a gallon Sunday, and backed down a fraction of a cent today. The national average rose a fraction of a cent to a record $3.79 a gallon. Illinois has the fourth-highest gas prices in the nation.
Diesel: All prices here are records. Rockford increased another two cents to almost $4.58 a gallon today, while the state average rose haf a cent to $4.59 a gallon. We still have the second highest diesel prices in the state. The national average increased a penny to $4.52 a gallon. Illinois has the 15th-highest prices in the country.
May 19th, 2008
An observant Belvidere resident noticed an oddity this morning - a passenger train riding on the freight tracks through Belvidere. Moreover, it said something about “George Bush” on it.
That’s the Operation Lifesaver train that Union Pacific is using to raise awareness about railroad crossing safety. The railroad is taking a few carloads of local leaders and dignitaries from Rockford to Union and back today, talking about the Operation Lifesaver program. Tomorrow, the train goes from DeKalb to Clinton, Iowa, and back. I was invited on today’s train, but couldn’t make it as I’m on vigil for $4 a gallon gasoline.
What’s George Bush got to do with it? Well, Union Pacific and other railroads have several special edition engines. One of UP’s was painted in honor of the George Bush (the elder, obviously) Presidential Library and Museum, which opened in Texas in 1997:
And here’s a video of the train in action:
[kml_flashembed movie="http://www.youtube.com/v/VpY95umQq_Y" width="425" height="350" wmode="transparent" /]
Drive safe out there!
May 16th, 2008
For the third day in a row, stations in Rockford are at $3.95 a gallon. If you see $4 regular unleaded, let me know at 815-987-1343 or tbona@rrstar.com.
Now on to the prices (data courtesy of AAA’s fuelgaugereport.com). All prices are records unless otherwise noted:
Gasoline: Rockford jumped another two cents to almost $3.91 a gallon for the metro area, a smaller increase than most areas of the state. We’re back down to sixth in the state, and more places are north of $3.90 than not. The state average increased two cents to $3.97 a gallon, while the national average rose a penny to $3.79 a gallon. Illinois has the third-highest gas prices in the nation, behind only Connecticut and Alaska.
Diesel: Rockford increased another two cents to almost $4.55 a gallon. Every metro areas in Illinois rose today, especially Quincy (up 15 cents to $4.52 … did a few tankers fall into a ravine?). Rockford holds at the second-highest spot in the state. The state average rose two cents to $4.54 a gallon. The national average increased almost three cents to $4.48 a gallon. Illinois has the 16th-highest prices in the country.
May 16th, 2008
A flight attendant, upset about having to work the work the Minneapolis-Regina route, set fire in an airplane bathroom, authorities said, forcing an emergency landing. It landed in Fargo (I guess the Minneapolis-Fargo route is way sexier).
Good thing the pilot hadn’t sent a passenger to sit in the bathroom.
(Thanks to Chris Lehman, former WNIU correspondent who now works for Oregon Public Broadcasting, for the link.)
May 15th, 2008
No reports of $4 gasoline in Rockford yet, but there are still stations at $3.95 a gallon. If you see $4 regular unleaded, let me know at 815-987-1343 or tbona@rrstar.com
Now on to the prices (data courtesy of AAA’s fuelgaugereport.com):
Gasoline: Rockford jumped another four cents to almost $3.89 a gallon for the metro area, the third-largest increase in the state. We’re up to fifth in the state, but there are two metro areas right behind us. This is gonna frustrate those of you who tell me Rockford gas stations are cheating us: There are plenty of sightings of $3.95 a gallon and more in Peoria, Bloomington and in the Chicago suburbs (including Elgin). For the first time ever, the average price for the Chicago region topped $4 a gallon today. The whole state is high right now (third in the nation), fueled by higher gas taxes than surrounding states (the sales tax, being a percentage, only accelerates the increases as prices rise). The state average increased more than two cents to $3.95 a gallon. The national average increased almost two cents to $3.78 a gallon. All prices referenced are records until further notice
Diesel: Rockford increased almost five cents to $4.52 a gallon. Most other metro areas in Illinois rose today too, but we now have the second-highest diesel prices in the state (behind Chicago at $4.60 a gallon). The state average rose almost four cents to $4.52 a gallon, so it’s just following us along. The national average also increased four cents to $4.46 a gallon. Illinois has the 14th-highest prices in the country. I obviously don’t have as much interesting to say on diesel prices, so any truckers, bus drivers or other experts, feel free to contact me with insights and story ideas into that market. I can be reached, again, at 815-987-1343 or tbona@rrstar.com.
May 14th, 2008
Cuts in the airline industry continue to hit Downstate airports. The latest is Springfield, which is losing its daily United Express flight to Washington D.C. Here’s a key point that resonates with Rockford’s experience with United Express:
United agreed to switch one of five Chicago flights to the Washington route in return for a $1.4 million revenue guarantee. The funds included a $390,000 federal grant, up to $200,000 from a Greater Springfield Chamber of Commerce economic development campaign and the remainder from the airport.
The flight will return to the Chicago route in July.
Passenger numbers just never reached a profitable level, and the subsidies became too expensive, airport board chairman Frank Vala said Monday.
“We’re going to be under the whole commitment ($1.4 million), but not by much,” Vala said.
He added that the airport board will think long and hard before offering revenue guarantees to a new carrier.
Before United announced it was exiting RFD, there was a lot of lobbying to get a Washington, D.C. route here. Obviously, United isn’t just cutting back here, but nationwide. Gonna be a tough time for smaller airports.
Vala is quoted as saying SPI has some upstarts looking to come in if they can get revenue guarantees, but the airport is reluctant. It’ll be interesting to see if those are some of the same ones RFD is talking to…
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