Myspace Layouts at Pimp-My-Profile.com / American Night
Myspace Layouts at Pimp-My-Profile.com / American Night
I'm on page 121Here's why inflation is not spreading due to fuel costs. At the peak of the transportation boom, truckers and rail companies boosted prices in response to soaring demand. One truck company president told me that his fuel surcharge was larger than his total fuel bill. He did not say higher than his incremental fuel bill, he said higher than his total fuel bill. So the "fuel surcharge" of two years ago was simply a way to raise prices.Now costs are up for truckers and railroads, but freight volumes are down. The transporters are not able to boost prices, because excess capacity in a competitive industry pushes prices down. The companies are facing lower profit margins, so inflation is NOT bleeding over into the non-fuel sectors of the economy.Business planning implications: if you ship goods, you'll be very vulnerable to a freight cost increase when the economy rebounds. At that time, look for the double whammy: higher fuel costs and rising profit margins. In the meantime, enjoy this temporary respite.