Interesting Article About Shipping

Topic 25952 | Page 1

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Bruce K.'s Comment
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Https://www.reuters.com/article/us-shipping-imo-costs/storm-approaching-firms-fear-for-deliveries-in-shipping-shakeup-idUSKCN1TQ0HS

Above is a link to an article I read today about maritime shipping. Apparently new international regulations may affect diesel fuel prices and impact the trucking industry. I personally have no opinion on the subject because I know nothing about issues like this. But maybe you smart guys might have something to say.

Rick S.'s Comment
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This obviously applies to maritime shipping. But who cares - if we don't adopt the Green Deal - we'll all be dead in 12 years.

In times when fuel prices get high - carrier charge a "Fuel Surcharge" to compensate for higher prices. Back in '08, when fuel was skyrocketing (diesel close to $5 a gallon in the NE), and additional charge was added to jobs for the difference in pricing.

Where this impacted the consumer - was in higher prices at the register. Where we saw this most was at THE SUPERMARKET - where prices on EVERYTHING went up. Interestingly, when fuel (and shipping) prices went DOWN - the prices of GOODS DID NOT. Sheeple got used to paying the price increases, (where the legitimate excuse for the rise was fuel prices), but never bothered to question WHY these prices didn't go back down, when the fuel prices did.

Cost of landed goods (that is, from the manufacturer/producer) is always calculated based on the actual cost of what it takes to get to the shelves. The most volatile variable in the equation - is FUEL COSTS.

Rick

RealDiehl's Comment
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I don't know: if fuel prices rise by 100% I'm pretty sure consumer prices will have to go up. How the heck can trucking/shipping companies absorb the increase without going bankrupt?

Rick S.'s Comment
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I don't know: if fuel prices rise by 100% I'm pretty sure consumer prices will have to go up. How the heck can trucking/shipping companies absorb the increase without going bankrupt?

They don't.

Company drivers don't see any difference. Lease drivers will (typically) see a FSA (Fuel Surcharge Adjustment), as it is built into the rate. From a carrier standpoint - even a long-term contracted rate nearly always has the FSA variable built into the contract.

Fuel prices (at least here in the US) are almost as dependent on TAX RATES - as they are on "spot market" fuel prices. States (and localities) seeking additional revenue, almost ALWAYS go after higher fuel taxes as a way to do this. Just look at Kalifornia, which is almost $1 per gallon higher than ANYWHERE ELSE in the country - all of this difference is IN TAXES.

US Department of Energy Fuel Prices charts where fuel prices are regionally.

The people who are hurt the most in wildly fluctuating fuel costs are the O/O's, running the broker/load boards. Many brokers are NOTORIOUS for telling carriers that there is no FSA in the job - and pocketing it for themselves.

Large carriers ALWAYS PROTECT THEMSELVES in the form of built-in FSA's in contracts - otherwise, they would go broke in a rapid rise in costs associated with fuel prices (one of the largest "necessity costs" outside of capital equipment purchases).

Rick

Regional:

Regional Route

Usually refers to a driver hauling freight within one particular region of the country. You might be in the "Southeast Regional Division" or "Midwest Regional". Regional route drivers often get home on the weekends which is one of the main appeals for this type of route.

Tractor Man's Comment
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Just look at Kalifornia, which is almost $1 per gallon higher than ANYWHERE ELSE in the country - all of this difference is IN TAXES.

Yes ..............but the ROADS and FREEWAYS are PRISTINE!!!

rofl-1.gif

PackRat's Comment
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double-quotes-start.png

Just look at Kalifornia, which is almost $1 per gallon higher than ANYWHERE ELSE in the country - all of this difference is IN TAXES.

double-quotes-end.png

Yes ..............but the ROADS and FREEWAYS are PRISTINE!!!

rofl-1.gif

Something I’ve noticed in regards to roads in the states with the highest taxes vs states with lower taxes is the high $$$ tax states roads are not any better. CA, IL, NY, WA do have some great stretches of asphalt, but none better than any other state (take your pick).

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