Features

Shippers Speak Out

When we asked shippers to briefly weigh in on how they see the supply and price of fuel impacting their supply chain businesses in the next five to 10 years, they spoke out.

Below is a sampling of the wide range of responses we received:

• Scary times await us!

• The consumer will bear the brunt of the cost…

• As for pricing of fuel, we have entered a new era and our costs will only continue upward…

• We expect prices to increase as fast as fuel increases over the next 5-10 years. …We are and have been actively looking for local suppliers, i.e., North American.

• We are hoping that fuel will stabilize for the future, so that we can have some predictability in our costs, and our customers will have the ability to purchase our products.

• I definitely see fuel cost being a major influence … geographic areas of sourcing may not change but the points where we bring product into the U.S. will be closer to actual market areas. Consolidation points, e.g., China, will be of utmost importance in supporting this endeavor.

• I believe all the new advances on alternative fuel will reduce the dependency, so I see a lesser impact than today.

• Will impact our sourcing once we quote a price. We can’t go back and ask for more money because fuel goes up.

• Fuel and other macro economic impacts will drive manufacturers to revisit location of manufacturing and likely develop hybrid manufacturing models, leveraging low cost regions with regional manufacturing.

• Higher fuel costs because of supply, price speculation and reduced U.S. dollar value will hamper growth of business in all sectors of transportation service.

• Increased freight costs put pressure on our ability to offer competitive prices. It will make contract negotiations with carriers much more difficult.

• Fuel and other port-imposed surcharges will have a negative impact.

• If container pricing is not stable, we will stop and move production that requires it.

• Everyone has to pay extra for fuel, so I don’t see any big changes.

• We’re moving towards more ocean because of the fuel impact from air.

• I expect volumes to hold generally with some shift back to Mexico.

• It goes without saying fuel is a major impact. High fuel limits service as well as increases price.

• Freight rates will double!

• Fuel will continue to increase cost and instability of cargo flows. We may see a resurgence of local manufacturing competing with the global corporate manufacturing dinosaurs.

• No real effect. Prices, people and products will adjust — just as they have before.

• Cost increases are always hard to take and even harder to pass on.

• Huge changes are occurring with modes and flows of imports and exports around the world; it will be important for industry leadership and major shipping suppliers to face these challenges now rather than in the future. The current infrastructure, capital investment, global supplier networks and end users alike will be forced to face major supply-chain challenges.

• Limited competition is worrisome.