A recent study by Philip Verleger Jr., an economic analyst, presents the potential causes of the increasing fuel costs across the nation’s supply chain. His findings factor in multiple variables, including limitations on key resources, increased demand, political sanctions, as well as the International Maritime Organization’s (IMO) enactment of 2020 that limits the kinds of fuels steamships can use.
“The fluctuation in the price of fuel has a big impact on the shipping and shipping logistics industries,” Ross Harris, CEO at A3 Freight Payment, a third-party freight bill payment company, said recently. “As costs continue to rise, carriers are having to take losses or raise their shipping prices.”
As market factors continue to fluctuate, the diesel and gasoline prices will likely continue to increase this year, until more and potentially cheaper crude oil is available.
Headquartered in Oakland, California, GSC Logistics is a leading provider of high volume, full-service shipping programs including ocean and intermodal drayage, domestic and import/export cross-dock deconsolidation, overweight transportation, D.C. bypass programs, brokerage, and refrigerated and dry truckload services. Understanding the challenges commercial organizations face in resources, capacity, and scalability, GSC Logistics guides its clients through the complexities of supply chain and freight management logistics, helping them transform the way they do business.