Mr. Smith, I'm a FedEx employee. One suggestion I would like to make is to ask the government for more incentives (tax credits) to help reduce the break-even point on new (Hybrid) truck purchases. Published sources indicate that it takes 3-4 years to recover the cost of purchasing a new hybrid truck. If further incentives are offered (by the government) it could help reduce the break-even point. This would, in turn, convince businesses to replace some of their older fleets with new hybrid vehicles. The government can be convinced to offer these incentives by accepting a key condition: these trucks will be manufactured on American soil (not necessarily by American companies) so as to retain the jobs created, within American borders. Apart from the obvious benefits of reduced fuel consumption, lower environmental impact and job creation (manufacturing, training, maintenance, parts, etc.) 3 other significant benefits would follow: A. Economies of Scale: FedEx and its competitors operate in excess of 400,000 trucks. Even if 25K to 50K of these trucks are replaced (over a 3 year period) with hybrid vehicles, manufacturers will be assured of a market and will be willing to make the capital investment required to mass produce these trucks. This should help lower the price point to a level that would attract smaller buyers, further expanding the use of Hybrid trucks. B. Increased Productivity: The cost savings achieved through lower gas consumption would not only reflect in the company’s bottom line but help lower the overall shipping cost in the long run. C. Improvements in Technology and Export Potential Moreover, increased use of these vehicles should attract increased investment in R&D, further improving the technology to achieve better mileage standards. By taking the lead, American companies would be in a position to export this technology thus creating a competitive position in the global market for commercial vehicles.

I totally agree with Fred, We have a huge problem and it will take everything we can throw at it to fix it. Electric is what we need to be looking at for short haul fleet and personal use. I look forward to the day when I can pull my car into the garage and plug it into an outlet for a cheap fill up.. We need to save the fossil fuel for our military use, long haul and aircraft operations. We need to be free of foreign oil, and all the grief that comes with it. I believe our future in this country depends on it.

Fred's post is right on the money. I would submit that we should be treating oil as a national security issue rather than an economic issue. Ultimately it is both. We need to allocate oil resources to necessary uses such as aviation and military. Ever try to fight a war without oil? Germany found out what that was like in the 40s. You don't fare too well. Conservation is not just economically and ecologically sensible, it is a patriotic issue. If we are to keep our military capabilities and our nation strong, we need to act quickly. Delay only increases cost and weakens our position. Who knows what situation or disaster will arise in the world in the future. We need intelligence, discipline, and foresight to keep us all safe and prosperous.

I completely agree on the points. Not only does this affect the shipping industry. It impacts the price of everything in our world. That being said, getting there certainly contains some obstacles. The huge Tax on Diesel products is beyond rediculous. This is basically a VAT on top of our current other taxes. This is not only felt by business, but by its customers. Which in the end is who is always footing the tax bill. To move to a Hybrid shorthaul system is awesome. To obtain the desired results we need to be building new Nuclear plants now. Or we will simply be facing price hikes at the meter vs the pump. And people fear Nuclear, Pebble bed reactors can be built fast, cheap, and there is no safer method I am aware of. And I worked in the field. As a company I beleive FedEx could capitalize on our available roofspace (unrealized profitable real estate) using technology from companies like nanosolar. In conjunction with Plug in Hybrids to lower cost, increase profits and lead the charge in hedging against future price spikes. And for PUVs to be cost effective means mass production, which seems like everyone is waiting for someone else to make the first move.

Excellent point of view from Mr Smith, specially usin hybrid technology jorge rojas monterrey mexico