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 Reporter July 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Nigeria's Tanker Ban Underscores Local Industry Disarray

The Nigerian president's sudden, unexpected and seemingly unilateral decision to ban nearly 100 oil tankers from the country's waters has sown confusion in the

CMA CGM Takes Second Guyanamax Boxship

The CMA CGM Group Informed that the CMA CGM MARSEILLE – 2nd vessel of its GUYANAMAX 3 - vessels series – was delivered in South Korea on July 29th. This 2,

LOC Opens Paris Office

LOC, a leading global marine and engineering consultancy for the shipping and offshore energy industry announces the expansion of its European operations with

Finance

Nigeria's Tanker Ban Underscores Local Industry Disarray

The Nigerian president's sudden, unexpected and seemingly unilateral decision to ban nearly 100 oil tankers from the country's waters has sown confusion in the

Australia's Massive Shipbuilding Plan Announced

The Australian Government has thrown domestic shipbuilders an A$89 billion (US$ 66 billion) lifeline. It plans to deliver a long-term plan for a strong and sustainable naval shipbuilding industry.

Matson Declares 2Q EPS Of $0.23

Matson, Inc., a leading U.S. carrier in the Pacific, today reported net income of $9.9 million, or $0.23 per diluted share for the quarter ended June 30, 2015.

Environmental

Adverse Weather Warning to Chilean Ports

Inchcape Shipping Services (ISS) is advising that Chile’s Port Authority has issued a warning of adverse weather conditions and strong swells affecting the Chilean coast over the next two days,

Totem Inks LNG Conversion Deal with Keppel

Totem Ocean Trailer Express announced that it has signed a contract with Keppel Offshore & Marine Ltd, wholly owned subsidiary Keppel Shipyard Ltd for the conversion

S.Africa Considering Ship-Based Power Generation

South Africa could deploy power barges using gas to generate electricity to help overcome chronic supply shortages, a senior government official said on Tuesday.

Fuels & Lubes

Nigeria's Tanker Ban Underscores Local Industry Disarray

The Nigerian president's sudden, unexpected and seemingly unilateral decision to ban nearly 100 oil tankers from the country's waters has sown confusion in the

S.Africa Considering Ship-Based Power Generation

South Africa could deploy power barges using gas to generate electricity to help overcome chronic supply shortages, a senior government official said on Tuesday.

Koole Expands Rotterdam Operations

Koole Terminals has begun operations at the storage facility for petrol and diesel in Pernis that it recently acquired from BP.   The companies have a long-standing relationship.

News

China: South China Sea Reclaimation Work Halted

China has halted reclamation work in the South China Sea, the country's foreign minister said on Wednesday, at a meeting of Southeast Asian foreign ministers where

Nigeria's Tanker Ban Underscores Local Industry Disarray

The Nigerian president's sudden, unexpected and seemingly unilateral decision to ban nearly 100 oil tankers from the country's waters has sown confusion in the

Adverse Weather Warning to Chilean Ports

Inchcape Shipping Services (ISS) is advising that Chile’s Port Authority has issued a warning of adverse weather conditions and strong swells affecting the Chilean coast over the next two days,

 
 
Maritime Careers / Shipboard Positions Naval Architecture Pipelines Pod Propulsion Port Authority Salvage Ship Electronics Ship Repair Ship Simulators Winch
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: 0.3506 sec (3 req/sec)