Friday, June 27, 2008

Oil Price Fallout

From ABC News:

As the cost of shipping continues to soar along with fuel prices, homegrown manufacturing jobs are making a comeback after decades of decline.

While it once cost $3,000 to ship a container from a city like Shanghai to New York, it now costs $8,000, prompting some businesses to look closer to home for manufacturing needs.

Just nine years ago, the price of oil was $10 per barrel and now it's $140 per barrel. Result: a 267% increase in shipping cost. Holy crap. No wonder that companies are beginning to manufacture at home.

Too bad our economy is in the (oil) tank; most folks can't afford to purchase the stuff anyhow.

No comments: