Oil PRICE SHOCK is SHAKING ENTIRE WORLD.
@redyellowblackdog (10629)
United States
July 7, 2008 10:57am CST
Yes, it is true.
The high price of oil is even having dramatic effect on the economy of China. China has long counted on the cheap cost of transportation to help them underbid other world wide manufacturers. Not all their profit comes from cheap labor, cheap transportation is a big component, too. Today, one has to ask, "What cheap transportation?".
China has other problems making their economy difficult.
Read all about it.
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/07/07/ccview107.xml
What do you say? Is the world going to become less industrialized? Are small farmers going to make a comeback? Will local manufacturers have a resurgence? What do you think is going on in the world?
2 people like this
1 response
@gewcew23 (8007)
• United States
7 Jul 08
Unless we as a nation are willing to do what is need yes we will have to become more locally centered. Unless we can stablize gas prices products will become to expensive to be transport over long distance. The only way we can survive under current conditions will be to build more train freight depot. Using some of your logic about the ton mileage trians get the best. The city I live in has a railroad running through it but no depot, just train track. Imagin if there was a frieght depot here in my city, semi-truck would have less distance to drive to drop of frieght. Trains are not the whole answer but appart of the solution. Our transportation is not any cheaper than China. We have diesel at almost 5 dollars a gallon. You know this but I will go ahead just in case some reads this and did not know this, semis use diesel. If a semi has to drive thrity miles from and to the nearest frieght depot cost money. If you have to do across country trip, dear God that would be too expensive. I have heard that a semi hold 50 gallons of diesel, if I am wrong then just adjust the number. I have also heard that a semi gets 5 mpg, once again if wrong just adjust the number. So at that rate a semi can travel 250 miles, but at 5 dollar a gallon that 250 miles will also cost 250 dollars.
@redyellowblackdog (10629)
• United States
7 Jul 08
Your suggestion that the trains straighten out their operations and get seriously back involved in the freight hauling business is a good one.
Piggy back operations where trains haul semi trailers to be off loaded and delievered by trucks at destination undoubtedly is going to become really big.
Busses for people could do a lot of good, too.
1 person likes this
@redyellowblackdog (10629)
• United States
7 Jul 08
For a few months in 1977 when I first became an independent trucker, I use to pay as low as 52.9 cents for a gallong of diesel. Even in late 1985 when I left the industry, I was paying only slightly over $1. Times change.
America is changing.
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