Black Panther 1,592 Posted February 24, 2016 Share Posted February 24, 2016 http://gcaptain.com/canals-feel-ripples-of-container-shipping-crisis-as-vessels-go-the-long-way-round/ Quote Link to post Share on other sites
Island Time 1,243 Posted February 24, 2016 Share Posted February 24, 2016 True BP, but they use bunker oil, much heavier than diesel. And WAY cheaper... Still it is an interesting refection on the cananl fees and the current petro chemical industry prices. Good for us. Not for some. Quote Link to post Share on other sites
wheels 543 Posted February 25, 2016 Share Posted February 25, 2016 So has anyone noticed a reduction in Transport/Courier Charges? I haven't. How about Groceries being cheaper? Nup, not here. Or here's a good one. What about the price of Epoxy Resin and while i am at it, Paints and especially Anti-foul.There are man goods i can think of that are not coming down in price to the amount that manufacturing costs must have dropped by.I did hear the other day someone saying Electricity was going to increase a sizable amount again.Oh an Marsden Point made a $150mill profit. Quote Link to post Share on other sites
too_tall 15 Posted February 25, 2016 Share Posted February 25, 2016 Wheels, unfortunately the cost of the fuel is only a fraction of the cost of the overall transport and production cost. Everyone keeps on telling me that the reduction in the price of fuel must be helping us farmers a lot. Really? On the farms expenditure I was analyzing yesterday, we have spent for the year to date, $11500 on fuel give or take. Thats out of a total expenses figure of $1,070,000 give or take. ( This includes interest and tax, but its something we all have to pay ) If fuel doubled in price, thats only going to make the overall expenses figure to lift to 1,081,500 or there abouts. Around 1% Sure there will be a little bit of flow on from suppliers who may lift their prices, but again, their costs are not overly highly affected by fuel prices. Even transport operators, for whom fuel is a more significant part of their expenses will be finding not more than 5% or so changes in their true expenses I suspect, by the time they have paid for maintenance, road user charges, wages, fixed costs, office staffing and operating costs, plant replacement allowance etc. Yes, if would be nice to see prices drop every time fuel prices dropped, but prices don't always leap up at the first fuel price increase either in my experience. Quote Link to post Share on other sites
Romany 162 Posted February 25, 2016 Share Posted February 25, 2016 Why should we be surprised? Oil barons and governments worldwide have been gouging our wallets for decades and we all know there is a plan behind their misbehaviours (the old "how can I line my pocket out of this and screw the rest of you" plan). Reported today on MSN (I saw it today is what I mean) that Bloombergs (whoever they are & I have no idea about that, or their credentials) warn another oil glut approacheth (oversupply leading to price crash), and I think they intimate that it is part of a strategy to undermine the oil industries 'boogie man' i.e. electic cars. Supposedly the next 2 years could see EV's at the $30000 mark although I guess that is USD, and also probably the cheapest and most basic of cars. I'd buy one right now if I could afford it. I imagine all that will change is that those who currently invest heavily in oil, will have long ago hedged their bets and ploughed part of their gains into alternatives fuels so that when the change gets going they will be positioned nicely to continue reaping benefit from the gouge. Bastards? Or is that the spirit of investment? Whatever your belief it just goes to show that we are a greedy species. Oil and the downstream effect of its use pretty much shits in our own nest andyet we continue to guzzle. and those who invest in it do so because of the massive returns they can achieve Quote Link to post Share on other sites
Ed 143 Posted February 25, 2016 Share Posted February 25, 2016 Air NZ are reaping the benefit, they have made as much profit in the last 6 months as they did in the whole year previously. Quote Link to post Share on other sites
wheels 543 Posted February 25, 2016 Share Posted February 25, 2016 Even transport operators, for whom fuel is a more significant part of their expenses will be finding not more than 5% or so changes in their true expenses I suspect, by the time they have paid for maintenance, road user charges, wages, fixed costs, office staffing and operating costs, plant replacement allowance etc. Yes, if would be nice to see prices drop every time fuel prices dropped, but prices don't always leap up at the first fuel price increase either in my experience. I had an "invisible message" in between the lines of what I wrote TT. Many excuses for excessive price rises was the dramatic increase in Fuel costs. Many Transport companies even included a special fuel surcharge on top of their normal freight charge. So what I was alluding to is more a cynical slap at the excuse rather than the actual. Just like when we see fuel increase almost instantly when crude prices goes up, yet it seems to take age to come down. Oil barons and governments worldwide have been gouging our wallets for decades and we all know there is a plan behind their misbehaviours (the old "how can I line my pocket out of this and screw the rest of you" plan). Reported today on MSN (I saw it today is what I mean) that Bloombergs (whoever they are & I have no idea about that, or their credentials) warn another oil glut approacheth (oversupply leading to price crash), and I think they intimate that it is part of a strategy to undermine the oil industries 'boogie man' i.e. electic cars. No that is just the conspiracy rubbish from the Tinfoil hat brigade. What this world would greatly improve with is if Oil was removed from the ability to be bought and sold by investors. in other words, the only ones being able to have fingers in the Pie are, the Company/Country that sucks it out of the ground, the Refinery and the Distributor. None of those three actually make huge sums of money from oil.The ones making the money are the speculators. They by and sell with never ever touching the stuff. They make money simply by staring at a computer screen. And all at the cost of all of us. That should not be allowed, although that is my view and hey, it will never happen. Quote Link to post Share on other sites
wheels 543 Posted February 25, 2016 Share Posted February 25, 2016 Air NZ are reaping the benefit, they have made as much profit in the last 6 months as they did in the whole year previously. Yes but at the same time, they have slashed fares. And making profit in a short time is not telling the entire story. At some point, the profit is spent again in upgrading Aircraft. So next year maybe, they could have less profit. So you have to weight Profit against Assets. Quote Link to post Share on other sites
Ed 143 Posted February 25, 2016 Share Posted February 25, 2016 Air NZ have already bought the planes, hence the saving. Also considering they have increased competition from Jetstar and AA currently they haven't done too badly. (Jetstar haven't done themselves many favours though). As for fuel prices being sticky going down, the research done by NZIER based on Dubai crude, diesel and petrol pump prices between 2004 and 2013 found no evidence of opportunistic gouging. Petrol companies pass on oil price decreases to consumers just as quickly as they pass on increases in prices. However the importer margins did go from 6% in 2010 to 12% in 2013.... Quote Link to post Share on other sites
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