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Old 2nd June 2010 | 18:08
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sisyphos
 
Joined: Apr 2006
Posts: 201
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From: europe
Could you elaborate you figures ?

First you are saying a 100% increase in fuel price would result in cargo rate rise of 30-40%, then you are saying it would only increase by 0.5-2% ??


"Cargo rates will just go up and that's it. It could be that some stuff which is currently flown will have to switch to surface transport, but generally speaking 100% rise of fuel price will get cargo rates to rise by 30-40%. "

"So instead of paying $4 per kilo, shippers will have to pay $5.5. Typical stuff flown longhaul costs over $100 per kilo, if the fuel cost would double, overall commodity price at destination will increase by 0.5-2.0%. Hardly end of the world."
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