Oil prices rose to a four-year high following OPEC’s meeting this weekend, according to the Wall Street Journal.
Transportation costs are rising too – in all modes of transportation – by sea, land, and air.
Over past 12 months, WTI crude oil prices rose 37%, from $47 to $65/bbl.
This caused diesel fuel prices to rise 29% (from $2.50/gal to $3.22/gal).
Thus, overall trucking costs rose by 23% - about 2% every month.
Container shipping costs are being driven up as well, as prices for bunker fuel have surged 270% since 2016.
Outlook for 2020 (when IMO pollution standards kick in): EVEN HIGHER!
How will this impact FF&E supply chains?
What can purchasing companies do to mitigate these rising costs?
Download OPEC’s World Oil Outlook 2018: https://woo.opec.org/, or contact Kevin Williams at KevinW@jmcgl.com, or your JMC sales representative to discuss alternatives