sisyphos
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 transportation has no value
per se. It is only one of the many costs of the final product, which is sold to the customer at his location. A typical commodity carried as aircargo has a value of over $100 per kilo.
For example the cheapest Canon digital SLR camera costs around $500 and weights around 0.5 kilo. I.e. value of 1 kilo of SLR cameras is $1000. Let's cut the whole process details, but you can assume that out of $500 retail price, cost of aircargo is $2. Now if the oil will double, cost of aircargo for this camera would be $2.75. Accordingly, retail price will be $500.75, which is an increase of 0.15%. Do you think Canon will stop flying cameras because of that?