High Fuel Prices Draining Global Economy Says New Report

MarineLink.com
Thursday, August 22, 2013

The forecasts and business strategies of carriers and manufacturers of transport-oriented capital goods indicate the industry is bracing for an era of higher energy prices and increased regulations, according to 'Transportation Outlook', a study conducted by Forbes Insights on behalf of CIT Transportation Finance.

“This study highlights the fact that transportation executives are preparing for a future of uncertainty, both in terms of fuel prices and regulations,” said Jeff Knittel , President of CIT Transportation Finance . “In doing so, they are implementing strategic business plans in response to the potential for a protracted era of higher energy costs and growing concern regarding current and proposed emissions regulations.”

Key findings:

  • Fuel prices and rising energy costs are impacting the global economy: More than eight out of 10 (81%) executives say uncertainty surrounding energy policies is hampering global economic recovery. Eighty percent say that today’s higher fuel costs are reducing global economic growth. Transportation executives believe the global economy is poised for a protracted period of increasing energy costs. More than six out of 10 (63%) believe prices will increase over the next 18 months, 78% expect prices to increase over the next three years, and 69% believe prices will increase over the next five years – 38% say significantly.
  • Regulations from the United States, EU and other governments are hurting consumers: Sixty-six percent of respondents say government policies have driven energy prices higher. Efforts to combat perceived long-term climate change run counter to a near-term economic growth agenda. More than eight out of 10 (83%) agree that relatively high fuel prices are contributing to higher consumer costs, and 81% agree that higher fuel prices are impacting consumer spending in other categories.
  • Regulatory activism over emissions is cause for concern: Roughly three out of four (76%) transportation executives are concerned by current and proposed emission regulations, and 47% say that the state of emission regulation is contributing to higher energy costs – a figure that rises to 64% among trucking companies. Overall, 86% say such emission regulations are adding to operating costs. Moreover, 79% say regulatory actions are forcing their companies to increase spending on capital equipment.
  • Carriers and their customers forge strategic responses, as do manufacturers of transportation equipment: Nearly half(47%) of carriers say their customers are working more closely with third-party logistics groups to optimize transportation costs, and 35% say their customers are relocating production or warehousing for the same reason. Nonetheless, 31% say they see customers encountering financial duress as a result of energy costs, 81% say they are updating their fleets to be more energy efficient and 79% say they are doing more to promote their sector’s energy efficiency relative to other transportation modes.


Complimentary copies of the report can be downloaded at www.cit.com/TransportationOutlook

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter February 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

IBIA Celebrates 23th Annual Dinner

Association appoints new board members and sets priorities for the future   The International Bunker Industry Association (IBIA) has appointed three new members

OSV Delivered to MC2 in Dubai

Marine Core & Charter LLC (MC2) headquartered in Dubai has taken delivery of the new build PETRA-1, the first of two, 45-meter Fast Offshore Support Vessels in

Baltic Index Pauses at Record Low

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, ended flat on Thursday after declining for 12 straight sessions

Finance

Baltic Index Pauses at Record Low

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, ended flat on Thursday after declining for 12 straight sessions

Long Beach Sees Robust Container Growth

The Port of Long Beach kicked off 2016 by logging its seventh straight month of cargo increases, showing a 24.8 percent jump in container shipments over the same month last year.

Maersk Drilling Posts Record Profit

Maersk Drilling delivered the best result ever with a profit of USD 751m (USD 478m) in 2015 generating a ROIC of 9.3% (7.1%). The result was positively impacted

Environmental

Update on Seagull Mobile apps for Crew

The Seagull mobile app for crew training status is set to revolutionise the way seafarers track their training records and receive critical safety alerts, by making

Proposed Changes to Long Island Sound Dredged Material Sites

The U.S. Environmental Protection Agency (EPA) is proposing to amend its 2005 rule that designated the Central and Western Long Island Sound Dredged Material Disposal Sites.

Next Generation Marine Power & Propulsion Conference

The Next Generation Marine Power & Propulsion Conference will be held at the Grand Harbour Hotel, Southampton, U.K. from April 26 to 28, 2016.    This unique

Fuels & Lubes

IBIA Celebrates 23th Annual Dinner

Association appoints new board members and sets priorities for the future   The International Bunker Industry Association (IBIA) has appointed three new members

The Next Generation of Hull Performance Management

Hull performance monitoring solutions can offer significant fuel savings potential, a fact that is prompting growing interest from the maritime industry. To spur

GTT, DSME Partner for NO96 Max Development

GTT signs a cooperation agreement with Daewoo Shipbuilding & Marine Engineering aiming at the industrialization of its NO96 Max technology   GTT, a designer of

News

Port of LA’s January Volumes Up 33%

704,398 TEUs leads Los Angeles to busiest January in port history    The Port of Los Angeles handled 704,398 Twenty-Foot Equivalent Units (TEUs) in January 2016,

42 People Rescued after Abandoning Ship off Hawaii

Forty-two people are safe after abandoning ship approximately 1,800 miles south of the Hawaiian Islands, Thursday, the U.S. Coast Guard reported.   Crewmembers

Yacht Club Takes Delivery of New Dredger

Rose City Yacht Club, a long-standing private marina and social club along the Columbia River in Portland, Ore., recently took delivery and startup of a new 8-inch Badger Class dredge from Reserve,

 
 
Maritime Contracts Maritime Security Maritime Standards Navigation Offshore Oil Pod Propulsion Port Authority Salvage Ship Simulators Shipbuilding / Vessel Construction
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1137 sec (9 req/sec)