CARRIER COSTS AND DEMANDS AFFECTING TRANSPORTATION SERVICE PRICES

By Staff -- Logistics Management, 5/1/2000

Pallets

Logistics managers who buy wood pallets and skids should brace for some price hikes. In March 2000, the cost to manufacture pallets rose 3.0% from year-ago levels. The problem? Rising lumber costs. Average product prices for wood pallets haven't increased too much yet. But pallet producers, which are generally facing tight margins, are likely to raise prices even though they enjoyed above-average margin conditions prior to the most recent wood cost runup.

Gasoline and Jet Fuel

U.S. gasoline prices just keep jumping, despite news that OPEC will increase crude oil production. In March, average prices for gasoline refined in the United States rose 14.1% over February levels. Jet fuel prices rose by 2.5% over the same period. With production increases in the works, many expect prices for refined petroleum products to crest this spring. Evidence that the peak is nearing can be seen in declining prices for petroleum-related futures.

Source: Thinking Cap Solutions. (360)452-6159. E-mail: thinkcap@olypen.com