Transportation is provided by Squire's Services. If you're looking for long-distance trucking, you've probably heard of Squire Transportation (Squire). Squire's cargo is around 10% empty, resulting in a 1,200-mile average freight voyage. Squire's 53-foot trailers are typically towed by single-driver tractors. For many years, Squire has been able to keep its operating costs low by using low-cost diesel fuel and non-union drivers. To pick up merchandise for delivery to its essential clients, the company must use either bobtailing tractors (which do not tow trailers) or dead-heading equipment (which runs tractor-trailers empty). When the price of gasoline was less than $0.99 per gallon, this strategy was advantageous to businesses. On the other side, the current increase in diesel prices has increased Squire's operational costs. At a truck stop, a gallon of diesel costs between $3 and $4. Equipment relocation is becoming too expensive for companies that rely on on-time pickups and deliveries to maintain a competitive advantage. Increases in fuel prices may affect Squire's clients, albeit many are unhappy with the growing costs. Squire's management may adopt regional TL operations rather than accept the higher operating costs, resulting in lesser earnings. DOCUMENTS RELATING TO CASE STUDIES Q&A What advise would you give Squire if you were in his shoes? Is it possible to reduce the impact of high diesel prices without establishing regional operations? If that's the case, how do you envision Squire's regional presence expanding?