Effects of high oil prices - DFWstangs Forums
 
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post #1 of 7 (permalink) Old 06-24-2008, 07:43 PM Thread Starter
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Effects of high oil prices

I mentioned this exact thing happening a few months back and it looks like it is finally taking hold. With the high oil prices it doesn't make sense nor does it help profits to build something overseas and then ship it back to the U.S. I hate high gas prices just as much as anyone, but its nice to see some companies coming back to the states. In the article they claim it cost $8,000 to ship a container from China to New York. I'm not sure what the ships charge but on the railroad with fuel surcharges it cost almost $4,000 to ship a container from Atlanta to California. Maybe some of these companies will realize that you can still build a great product in the United States and still turn a profit. Who knows maybe they will keep production on this side of the pond even after gas prices go down, but I'm sure that's just wishful thinking.

http://abcnews.go.com/Business/story?id=5235731&page=1

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Last edited by FreightTrain; 06-24-2008 at 08:15 PM.
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post #2 of 7 (permalink) Old 06-24-2008, 07:46 PM
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I hope you're right. I'd be willing to pay more for domestic goods out of sure hope that China will crater.

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post #3 of 7 (permalink) Old 06-24-2008, 08:08 PM
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Quote:
Originally Posted by FreightTrain
Maybe some of these companies will realize that you can still build a great product in the United States and still turn a profit.
Foreign companies are building here. Toyota, Nissan, Honda, Benz, Hyundai. It is only the domestic cars companies that can't do it. I wonder what is wrong with their business model? Nokia was building here is Fort Worth, well a couple years ago, but it was a good ride.
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post #4 of 7 (permalink) Old 06-24-2008, 08:12 PM
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Quote:
Originally Posted by FreightTrain
I hate high grass prices just as much as anyone, but its nice to see some companies coming back to the states.
Wait are we talking about legal products or illegal substances?
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post #5 of 7 (permalink) Old 06-24-2008, 08:16 PM Thread Starter
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Originally Posted by mustangguy289
Wait are we talking about legal products or illegal substances?

LOL I edited it just for you. On a side note how has the weak dollar effected drug prices. I'm just wondering out loud.

TRAIN TRASH it's like WHITE TRASH but with money.

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post #6 of 7 (permalink) Old 06-24-2008, 09:27 PM
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LOL I edited it just for you. On a side note how has the weak dollar effected drug prices. I'm just wondering out loud.
wouldn't know lol im sure it hasnt helped it.
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post #7 of 7 (permalink) Old 06-24-2008, 10:51 PM
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Quote:
Originally Posted by FreightTrain
I mentioned this exact thing happening a few months back and it looks like it is finally taking hold. With the high oil prices it doesn't make sense nor does it help profits to build something overseas and then ship it back to the U.S. I hate high gas prices just as much as anyone, but its nice to see some companies coming back to the states. In the article they claim it cost $8,000 to ship a container from China to New York. I'm not sure what the ships charge but on the railroad with fuel surcharges it cost almost $4,000 to ship a container from Atlanta to California. Maybe some of these companies will realize that you can still build a great product in the United States and still turn a profit. Who knows maybe they will keep production on this side of the pond even after gas prices go down, but I'm sure that's just wishful thinking.

http://abcnews.go.com/Business/story?id=5235731&page=1
You know, i've kind of been wondering the same thing - that at some point would the cost of shipping raw materials and finished product exceed the cost of local production? Maybe with the weak dollar and high transportation costs the good old US is starting to look like a place to do manufacturing again. We can only hope.

Edit: Found this. Interesting. http://abcnews.go.com/print?id=5235731

Last edited by mikeb; 06-24-2008 at 11:43 PM.
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