176 comments on Thursday Open Thread
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haggisbasher on March 23, 2006 - 6:27am
To answer the question more specifically, Bunker costs are between a third and quarter of the operating costs of a shipping company. (Source Baltic Exchange) I do not have an average figure for the shipping costs / retail costs - there are far too many variables. My WAG is that shipping will be less than 25% of the final cost of even low value items. That gives a relation between bunker costs and retail price of max 6 - 7%. i.e. A rise in fuel prices will not in itself be a major disincentive to purchasing imported plastic crap.
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Will on March 23, 2006 - 9:17am
Yes... but that 6 or 7 percent is WalMart's edge.
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