Oil-Hits-Record-High
April 28, 2008
As if the fuel surcharge situation couldn't get worse for freight shippers, the price of crude oil hit a record high today, fetching $119.00 per barrell on global markets. Analysts are predicted $200.00 in the future.
"Fuel price increases will have an impact on Carriers' bottom lines. They can't afford to eat the cost increases without passing them down to customers," explains analyst Larry Tustin. "For domestic freight shipping, small parcel, LTL or Truckload, this means they will continue to see increases in the freight quotes they receive from their Carriers. Freight pooling with groups like FreightClick.com are good options right now for lower volume shippers in this demand cycle."
The bottom line: Expensive oil is here to stay, presenting a strong challenge to the American economy.