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

People & Company News

MN 100: Elliott Bay Design Group

The Company: Elliott Bay Design Group (EBDG) is a Seattle-based, employee-owned enterprise with offices in New Orleans and Ketchikan that provides full-service naval architecture,

MN 100: Dometic Marine

The Company: Dometic Marine is an engineering leader of innovative products for the global marine industry and offers a large worldwide sales and service network.

MN 100: David Clark Company Inc.

The Company: David Clark Company specializes in providing communication solutions for high noise environments. Their noise-attenuating headsets and systems are

Finance

Greece Wants EU Funding to Tackle Migrant Influx

Greece will ask the European Union for about 700 million euros to build infrastructure to shelter the hundreds of refugees and migrants arriving on its shores daily, the government said on Thursday.

Asia-Europe Box Rates Soar Again

Shipping freight rates for transporting containers from ports in Asia to Northern Europe jumped 29 percent to $763 per 20-foot container (TEU) this week data from

G E Shipping delivers “Jag Aakash” to Buyers

The Great Eastern Shipping Company Ltd. delivered the new building Kamsarmax Dry Bulk Carrier “Jag Aakash” (81,600 dwt) to the buyers.  The vessel was contracted for sale in August 2015.

Environmental

Fishing Vessel Sinks, Spills Oil in Alaska

A 58-foot fishing vessel ran aground, sunk and spilled oil in Sitka, Alaska, according to the U.S. Coast Guard. No injuries have been reported, and there have

New Energy-saving Windshield on MOL MARVEL

Mitsui O.S.K. Lines, Ltd. today announced that it has started demonstration tests of a new windshield for containerships, which has the potential to reduce wind resistance,

Climate Change Will Forever Alter Key Ocean Microbes

Global warming will irrevocably mutate a micro-organism that plays a crucial role in the ocean food chain, reports a study.   Trichodesmium (referred to as “Tricho”

Fuels & Lubes

Rapid Oil Spill Response Vessel Launched

Western Canada Marine Response Corporation (WCMRC) launched their newest oil spill response vessel in Burrard Inlet. The boat, named after former employee George Penman,

Total Lubmarine Resumes Full Service in Tianjin

Marine lubricants and greases provider Total Lubmarine informs it has resumed all services based out of the Port of Tianjin following the deadly explosions that rocked the port August 12.

LNG-fueled Box Ship a 'Momentous Step Forward'

On Saturday, August 29, 2015, the world’s first series of energy efficient containerships welcomed its second LNG-powered vessel in San Diego, fueling the U.S.

News

CMA CGM Launches 18,000 TEU Containership

Container shipping firm CMA CGM Group has taken delivery of its newest colossal containership, the 18,000 TEU, 400-meter-long CMA CGM Bougainville.   Now the

Chinese Ships Headed Home After Bering Sea Sighting

Five Chinese Navy ships sighted in the Bering Sea off Alaska during a visit to the region by U.S. President Barack Obama have begun their "return transit," the top uniformed officer in the U.

A Great Passion for Small Ships

Gottfried Knöbel owns almost 1,500 miniature model ships, many of them are Hapag-Lloyd ships. How did he end up with this collection?   In a quiet residential district in Cologne,

 
 
Maritime Contracts Maritime Security Naval Architecture Offshore Oil Pipelines Pod Propulsion Ship Repair Shipbuilding / Vessel Construction Sonar 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: 0.9858 sec (1 req/sec)