Tuesday, June 3, 2008

Will US Internet Retailers and Manufacturing See Growth from High Oil Prices?

Sounds crazy but it is a possibility! Yesterday an interesting article was published at Treehugger.com describing how globalization and outsourcing may be changing in the near future due to oil prices. (See Article.) One example given was how it costs $8,000 to move a 40 foot container from Shanghai to the east coast of North America at current fuel prices. This is a major increase from 2000 when the same container cost only $3,000. This could have a leveling affect on businesses causing them to have more things to be made and grown closer to the ultimate customer. This could also mean shortages this fall for those that are not planning now. Only time will tell, but it does once again show how fuel and shipping charges can have a definite affect on many aspects of all business.

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